WARD 8 RESIDENTS ENGAGE ON DRAFT MULTI YEAR BUDGET FOR 2026–2029

On 16 April 2026, [17:00] residents of Ward 8 in Msukaligwa Local Municipality (MLM) participated in a virtual budget consultative meeting to unpack the municipality’s draft multi year budget for the period 2026/27 to 2028/29.

 

The meeting was chaired by Cllr Bongani Motha, Ward 8 Councillor and MMC for Planning and Economic Development, with the Executive Mayor, Alderwoman Mapulane Nkosi presenting the draft budget and responding to residents’ questions. Mr. Thabo Motloung from Planning and Economic Development department and Mr. Mfelani Lukhele for Community and Social Services department were also present to provide technical context.

 

Key highlights of the draft budget

The Executive Mayor outlined that the municipality’s total adjusted operational budget for 2026/27 is projected at R1.277 billion, with the original medium term framework ranging from R1.3 billion (2026/27) to R1.35 billion (2027/28).

 

Major revenue sources for 2026/27 include:

• Equitable share: R299 million

• Rates: R269 million

• Electricity: R360 million

• Water: R127 million

• Wastewater: R68 million

• Refuse collection: R59 million

 

These income streams are critical for funding services across the municipality, including Ward 8.

Proposed tariff increases and cost reflective pricing

 

The draft budget proposes the following tariff increases effective from 1 July 2026, subject to regulatory approval:

• Rates: 3.7%

• Water, sewer and refuse: 3.7%

• Electricity: 9.01% (subject to NERSA approval)

• Other municipal services: 3.7%

 

The Executive Mayor emphasized that these adjustments follow the MFMA Circular 132 guidelines, which require municipalities to move towards cost reflective tariffs over the medium term.

 

Infrastructure projects affecting Ward 8

Residents were informed that several conditional grant projects will directly benefit Ward 8 and surrounding areas:

• Upgrade of the 11 kV electrical network in the northern part of MLM (budget: R12 million).

• EDSM (street lighting) project to improve public lighting in town and wards (budget: R4 million).

• Regional Bulk Water Supply Scheme (Cluster 1) to address water shortages and asbestos pipe issues (budget: R145 million).

• Upgrade of the Ermeo wastewater treatment works and installation of a bulk sewer pipeline for Extension 44 (budget: R135 million).

These projects will be rolled out over the next three years, with priority given to areas with the most urgent service delivery needs.

 

Debt, arrears and indigent support

The municipality highlighted that total outstanding debt is R1.6 billion, comprised of:

• Residential debt: R1.2 billion

• Business debt: R305 million

• Government department debt: R112.9 million

 

For Ward 8, the age analysis shows that R81.9 million is owed by residents, with R66.1 million of that amount overdue beyond 90 days.

 

The municipality also owes Eskom (R1.1 billion) and the Department of Water and Sanitation (R1.3 billion), for which it has payment arrangements and is pursuing debt relief options.

 

Residents were reminded of the indigent support scheme and the conditions for registration:

• Households with income below R7 100 per month may qualify.

• Social grant recipients (excluding pensioners), people with disabilities, and child headed households may also apply.

To register, residents must provide:

• ID and birth certificates (for children)

• Recent salary slips or bank statements (if employed)

• Unemployment affidavit (if jobless)

• SASSA grant confirmation letter and card (if applicable)

 

Indigent households receive:

• 6 kl of free water per month

• 50 kWh free electricity per month

• Rebates on refuse, sanitation and property rates

 

Community concern on gravel roads

During the question and answer session, Thembelihle Zwane of Extension 14 raised concern about gravel roads in area where resurfacing has not yet happened, despite visible work in other wards.

 

The Executive Mayor acknowledged the issue and explained that:

• A temporary gravel plan exists to maintain problematic routes.

• The long term plan is to pave or resurface these roads, but this is constrained by limited municipal funds.

• Road works in town are prioritised where no external grants are available, using revenue collected from residents.

 

The Executive Mayor urged the community to pay for municipal services reliably so that the municipality can expand road maintenance and infrastructure projects across Ward 8.

Cllr Motha reminded residents that the draft budget will be advertised publicly for up to 30 days, giving the community an opportunity to submit written comments before the final budget is approved by Council.

 

He thanked residents for their time and participation, emphasising that public input is vital to ensure that Ward 8’s needs are reflected in the medium term revenue and expenditure framework.