Municipality invites public input on draft budget for 2025/2026

Kouga - Kouga Local Municipality’s Draft Budget for the 2025/2026 financial year was officially tabled and approved during an Ordinary Council Meeting held on Monday, 31 March 2025.

With the new financial year set to commence on 1 July 2025 and conclude on 30 June 2026, the municipality invites all councillors, residents, ward committee members, and stakeholders to actively engage with the proposed budget.

Public participation is vital, and community members are encouraged to review the draft document – available at municipal offices, libraries, and online at www.kouga.gov.za – and submit their comments, ensuring their voices are heard in shaping Kouga’s development priorities for the year ahead.

Accompanying the draft budget are key documents, including the Draft Integrated Development Plan (IDP) Review and the Draft Service Delivery and Budget Implementation Plan (SDBIP) for the 2025/2026 financial year.

Key Financial Highlights

The proposed budget reflects an increase in operating revenue by 7.89%, or R107,413 million, for the upcoming financial year, compared to the 2024/2025 Adjustments Budget. Operational revenue for the two outer years is projected to grow by 5.68% and 5.16%, resulting in a total revenue increase of R270,906 million over the medium-term revenue and expenditure framework (MTREF).

Operating expenditure for the 2025/2026 financial year is estimated at R1,605 billion, marking a 9.86% rise from the 2024/2025 Adjustments Budget.

Operating Expenditure

Major expenditure items for 2025/2026 include:

• Employee-related costs: 32.68%
• Bulk electricity purchases: 29.03%
• Depreciation: 8.87%
• Contracted services: 8.87%
• Inventory consumed: 7.13%
• Operational costs: 6.32%
• Debt impairment: 4.06%

Sources of Revenue

The operating budget will be funded mainly through the following revenue streams :

• Service charges: 52.75%
• Property rates: 21.79%
• Government grants and subsidies: 14.60%

Proposed Increases in Rates and Service Charges

Effective 1 July 2025, the following adjustments are planned:

• Property rates: 6%
• Water: 6.9%
• Sanitation: 6.9%
• Refuse collection: 6.5%
• Electricity: 12.74% (average increase in income)
• Environmental Management Fee: 6.5%

Capital Budget and Projects

The capital budget for 2025/2026 is set at R260,204 million, reflecting a decrease of 4.89% compared to the 2024/2025 Adjustments Budget. Funding will primarily be sourced from government grants, subsidies, and borrowings due to limited internal resources.

A total of more than R130 million has been allocated for the upgrading of roads, while over R13 million has been set aside for the improvement of gravel roads. Close to R30 million will go towards upgrading informal settlements.

The KwaNomzamo Waste Water Treatment Works is set to be upgraded at a cost of nearly R7 million.

Other significant infrastructure projects include:

• Phase 1 upgrade of the Thornhill Sewer Treatment Works – R1.8 million.
• Kruisfontein bulk sewer link line – R1.3 million.
• KwaNomzamo bulk sanitation: pump station and rising main – R5.1 million.
• Apiesdraai pump station – R1.9 million.
• KwaNomzamo bulk water: new pipeline – R3.1 million.
• Kruisfontein bulk water supply: Gill Marcus reservoir and pipeline upgrade – R3.2 million.
• Ramaphosa Village reservoir – R4.0 million.
• New reservoir on Portion 2 of the Farm Thornhill – R2.3 million.
• Loerie Sewer Pump Station upgrade and new sewer rising main – R4.6 million.
• St Francis Bay: boreholes – R1 million.

Public Input

Kouga Executive Mayor, Hattingh Bornman, reaffirmed the municipality’s commitment to transparent and inclusive governance, emphasising that public input will play a crucial role in finalising the 2025/2026 budget.

“We value the voices of our residents and are committed to carefully considering all concerns and suggestions before adopting the final budget,” he said.

Residents are encouraged to submit their written comments on the draft budget before 09 May 2025 to sabrahams@kouga.gov.za or zgonqoba@kouga.gov.za. The municipality will consider all concerns and feedback before the final budget adoption on 29 May 2025.