Tabling of final budget sparks tension at Ray Nkonyeni Municipality
One of the major contributors to municipal revenue, remains property rates, budgeted at R597.9m.
Tensions arose as the final budget for 2026/2027 was tabled at council chambers by Ray Nkonyeni Municipality mayor Zodwa Mzindle on May 26.
The tabled budget is projected at R1.557b. This was the final budget speech for the current term of office before the Local Government Elections scheduled for November 4, 2026.
The DA and VF Plus voted against the budget, however, it was passed because all other political parties (53 councillors) supported and accepted it.
DA Caucus chairperson Leon Garbade said the party’s decision stems from serious concerns regarding the municipality’s financial health, particularly the alarming fact that the budget is funded by a mere 3%.
“The proposed budget anticipates a modest 2.3% increase in income, yet 95% of rates income is earmarked for employee costs, leaving little room for essential investments in service delivery.”
The IFP supported the budget, however, IFP councillor Sfundo Ngwane from Ward 15 in KwaMadlala said it was no use applauding the budget because it was all just about big numbers and no actual work to show for it.
“As the IFP we are not happy, but as we are mandated we will support this budget, even though there is nothing to show for it. To move forward with this budget, we need to get full commitment from the leadership that they will be hands on.”
Municipal manager Khetha Zulu said that he understands that the margins are tight, but the municipality has to work with it.
According to Mzindle, the budget embodies an increase of just over R35.457m from the adjusted budget of 2025/2026.
“The municipality’s total operating revenue is projected at R1.450b, while total operating expenditure amounts to R1.392b. Our expenditure has increased by over R127m from the 2025/2026 adjusted budget largely due to bulk purchases, debt impairment, contracted services and operational costs.”
The mayor added that one of the major contributors to municipal revenue, remains property rates, budgeted at R597.9m.
“One of the issues that received significant attention during our public consultation meetings, was the concern around the proposed increase in property rates. Most comments and concerns from our ratepayers were related to what they initially perceived as a 4.4% increase in property rates.”
However, she added that after careful consideration, National Treasury guidelines, and alignment with the Consumer Price Index (CPI) and inflationary trends, the municipality resolved to limit the increase to 3.7%.
Electricity service charges are budgeted at R280.4m, subject to National Energy Regulator of South Africa (NERSA) approval regarding Eskom’s bulk tariff increases.
Furthermore, the municipality is directly affected by Eskom’s bulk electricity tariff increase of approximately 9.1%. Consequently, the municipality will increase its electricity tariff by 10.05%, this is in line with the electricity cost of supply study (subject to NERSA approval).
Waste management service charges amount to R81.3m, with an increase of 5% in line with CPI projections.
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