ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
ETHEKWINI MUNICIPALITY’S SPECIAL EXECUTIVE COMMITTEE DECISIONS
The City’s Executive Committee (EXCO) convened a special meeting today, 27 March, to deliberate on the proposed Medium Term Revenue and Expenditure Framework budget for the 2026/27 to 2028/29 financial years, ahead of public consultation.
The proposed draft budget amounts to R74.671 billion for 2026/27, R80.2 billion for 2027/28, and R85.7 billion for 2028/29.
For 2026/27, the budget comprises an operating budget of R68.8 billion and a capital budget of R5.8 billion.
Over the three-year period, the City plans R18.6 billion in capital investment, reflecting its commitment to addressing service delivery backlogs and accelerating the renewal and rehabilitation of ageing infrastructure, with particular focus on water and sanitation networks.
The City’s Chief Financial Officer, Dr Sandile Mnguni, emphasised that the draft budget is balanced, realistic, and fully funded.
He noted that the budget responds to competing Integrated Development Plan (IDP) priorities and the increasingly complex municipal operating environment.
Dr Mnguni highlighted the urgent need to restore and maintain damaged sanitation infrastructure while addressing financial pressures affecting both the Municipality and residents.
Key assumptions underpinning the budget include a projected 90% revenue collection rate, as well as a declining trend in cash reserves driven by rising operating costs.
The budget also considers broader economic challenges impacting household and business affordability.
Additionally, the Municipality has accounted for above-inflation tariff increases from bulk service providers, including uMngeni-uThukela Water and Eskom, alongside reductions in grant allocations.
Despite these pressures, the budget remains financially sustainable.
The Municipality is currently undertaking public consultation on the draft budget, proposed tariff adjustments, and the IDP.
Residents and stakeholders are encouraged to provide input before the budget is submitted to Full Council for final approval.
The proposed tariffs for consultation include:
Property rates: decrease to 5% from last year’s 5.9%
Electricity: increase of 10.5% following Eskom’s proposed 9.01% increase
Water: domestic users 15% (2% above uMngeni-uThukela Water’s 13%), business 16%
Sanitation: domestic 13%, business 14%
Refuse collection: 13%
Regarding property rates, the Municipality has extended the consultation period in response to the number of objections received.
Next month, the Municipality will engage National Treasury to assess whether the budget is realistic and fully funded.
Discussions with uMngeni-uThukela Water regarding proposed water tariffs of 13% are also ongoing.
ENDS
Issued by eThekwini Municipality Marketing and Communications Directorate
