Polokwane budget hits residents with higher tariffs
Polokwane residents face higher water and electricity bills after the municipality adopted its R7.4bn budget, with bus fares also increasing.
POLOKWANE – The Polokwane Municipality adopted its 2026/27 Budget of Income and Expenditure during its May council meeting, hitting residents hard with increases particularly for water and electricity.
The total budget amounts to R7.437 billion, representing R5.930 billion for operational expenses and a capital budget of R1.507 billion.
What’s driving the increases
The slow economic growth and high tariff increases by bulk suppliers, Eskom and Lepelle Northern Water, were considered in setting tariffs.
As a result:
| Service | Increase |
|---|---|
| Water | 7.43% |
| Electricity | 9.01% |
| Other services (CPI + 1%) | 4.7% |
| Bus fares (all routes) | R1 |
Staff costs take R1.23bn
The budgeted allocation for employee-related costs for the 2025/26 financial year totals R1.229 billion, which equals 23% of total operating expenditure.
Salary increases of 4.7% have been factored in. This includes:
- R33m for leave pay
- R30m for long service awards
- R47m for overtime
- R23m for performance bonuses
Sewerage, waste and property rates
From July 1:
- Sewerage tariffs will increase by 4.7% (based on property size)
- Waste removal tariffs will increase by 4.7% (based on property size)
- Residential property assessment rates will increase by 4.7%
Rebates for homeowners
The municipality’s rates policy excludes the first R15,000 of a residential property’s market value from the rateable value. An additional R85,000 reduction on the market value will also be granted.
Help for indigent households
Provision has been made in the operating budget for subsidising indigent households to around R187 million.
This subsidy includes:
- Free 6 kilolitres of water
- 100 units of electricity
- 100% subsidy for refuse removal and sewerage charges
- 100% rebate on assessment rates
To qualify, household income must not exceed R5 960. The policy also caters for child-headed families and people with disabilities.
Pensioners and disabled persons
A maximum rebate of 80% will be granted to pensioners and physically or mentally disabled persons if the total gross household income does not exceed the council’s threshold.
The property must be occupied only by the applicant, their spouse, and dependants without income. Applicants must provide proof of age and, where applicable, medical certification. The account must be paid in full or have a payment arrangement in place.
Pensioner rebate threshold
The municipality further grants 80% rebates to owners of residential properties who depend on pensions or social grants, provided the household income does not exceed R11,532.80.
