City's R70.9 billion budget adopted

ROMITA HANUMAN-PILLAY

AFTER consultations that spanned the length and breadth of the City and meeting with stakeholders including business, civil society, and ratepayer associations, the City’s 2025/26 budget of R70.0 billion was approved at Full Council on 29 May.

EThekwini Mayor Councillor Cyril Xaba presented the 2025/26 Draft Budget for approval on 29 May. The R70.9 billion budget prioritises infrastructure development. Picture: THULI DLAMINI

A major highlight of the budget is the adjusted tariff increases, which was one of the most common concerns that emerged during consultations.

EThekwini Mayor Councillor Cyril Xaba said: ‘’As a caring City, we recognise the plight of residents and have considered every comment and concern raised, particularly around proposed tariff increases. We have decided to lower our tariffs for certain utilities.’’

Mayor Xaba explained: ‘’We were unable to reduce the electricity tariff as we are guided by the National Energy Regulator of South Africa; however, we have made significant adjustments to the other proposed tariffs.’’

§  The residential water tariff was reduced from 15% to 13%

§  Business water tariff was reduced from 16% to 14%

§  The assessment rates tariff was reduced from 6.5% to 5.9%

§  Sanitation for business tariff reduced from 14% to 12%

§  Sanitation for residential tariff reduced from 13% to 11%

§  Refuse removal tariff was reduced from 9.9% to 9%.

The budget reflects the needs of the ratepayers and acknowledges that there are challenges that must be addressed. Thus, the City has developed a bold new approach to boost service delivery that hinges on real-time accountability, regional management, and technology-driven innovation, while acknowledging systemic weaknesses.

One of the frustrations expressed during the budget consultations is the City’s water challenges which will be addressed through the City’s approved Water Turnaround Strategy. Mayor Xaba said: ‘’At the heart of this strategy is the commitment to enhance the financial sustainability of the water utility by achieving targets such as increasing the cash collection of the unit from 67 percent to 92 percent, reducing non-revenue water, and replacing water meters that are older than 15 years. Our target is to replace 40 000 water meters annually. This will ensure that 98 percent of the bills we issue are based on actual meter readings rather than on monthly estimates.’’

The strategy also aims to clamp down on water theft and vandalism and ensuring the use of technology to proactively detect water leaks. In-sourcing ward-based plumbers and responding to all burst pipes within 24 hours is also part of the strategy to curb water loss.

Additionally, the budget includes targets such as building over 5 000 new houses, implementing 6 000 new water connections, adding 13 500 new electricity connections and 7 386 new sewer connections.

The 2025/26 budget will also aim to achieve 53km of wastewater pipes, upgrading of 14km of gravel road to blacktop, building 13 new sports fields, building two new libraries while refurbishing another 13 libraries as well as repairing and upgrading 11 community halls, and building three new fire stations.