Oudtshoorn, 09 June 2025 -The Executive Mayor of Greater Oudtshoorn Municipality, Alderman Johan Allers, delivered his Budget Speech during the Ordinary Council Meeting held on 05 June 2025, tabling the 2025/2026 Medium-Term Revenue and Expenditure Framework (MTREF). The 2025/26 budget outlines plans aimed at financial sustainability, sound governance, and responding to the needs of the community.
“This budget is both realistic and cash-backed, a significant achievement that allows us to deliver quality services without incurring a deficit or resorting to heavy borrowing,” said Executive Mayor Allers.
Key highlights of the budget include:
OPERATING BUDGET
- Total Operating Revenue: R1.067 billion (9.45% increase from previous year)
- Total Operating Expenditure: R1.083 billion
- Operating Deficit: R16.4 million
- Accounting Surplus (including capital grants): R25.8 million
- Anticipated Cash Surplus: R163 million
- Repair and Maintenance Allocation: R32 million (3.2% of total expenditure)
- Roads: R7.2 million
- Electricity Network: R6.4 million
- Water & Sewer Networks: R5.9 million
- Bulk Purchases: R315 million (29% of operating expenditure), heavily influenced by Eskom’s 11.32% electricity price hike
TARIFFS
Tariff setting is approached with care, considering the socio-economic realities of residents and the municipality’s sustainability.
- Property Rates: 6% increase
- Electricity: 13% (subject to finalisation by NERSA)
- Water: 0% average increase (basic charges restructured, including new basic charge for pre-paid meters)
- Refuse Removal: 12% increase (still not fully cost-reflective)
- Sewerage: 6% increase
The overall increase in municipal bills will range between 10% and 11%, primarily due to electricity and refuse removal. Without electricity, the increase is approximately 6%. The municipality’s Customer Care, Credit Control, and Debt Collection Policy is reviewed annually, incorporating feedback from public engagements and internal stakeholders.
CAPITAL BUDGET
- Capital Budget Allocation: R81 million—the highest in three years
- Funding Sources: Conditional Grants, Borrowings, and limited Own Revenue
Focus Areas for 2025/2026:
- Water Infrastructure: Critical upgrades are planned to address persistent pipe bursts and water interruptions, especially in Dysselsdorp, De Rust, and Oudtshoorn.
- Waste Management: Ongoing engagement with stakeholders for cost-effective and sustainable solid waste solutions.
- Tariffs: Increases remain modest and necessary to ensure sustainability:
- Property Rates: 6%
- Electricity: 13% (subject to NERSA confirmation)
- Refuse Removal: 12%
- Sewerage: 6%
- Water: 0% increase; however, new prepaid basic charges will apply.
Mayor Allers further stated in his speech that “fortunately, residents of Greater Oudtshoorn can be reassured by our track record of Clean and Unqualified Audits over the past few years. Every cent of our budget is accounted for. Under the leadership of the Government of Local Unity (GLU), we have put an end to corruption, mismanagement, and the misuse of public funds. We are committed to ensuring that taxpayers’ money is spent on the people and not on politicians.”
Mayor Allers concluded by calling on all residents, councillors, and officials to remain steadfast in the collective goal of building a municipality defined by ethical leadership, sound financial management, and inclusive service delivery. “Despite an uncertain economic climate and reduced national funding, we continue to maintain a strong cash position without heavy borrowing or deficits,” said Mayor Allers. “Our residents can trust that every cent of this budget is accounted for and spent where it matters most.”
The Council, acting under MFMA Section 24 and Municipal Systems Act Section 75A, approved the budget, tariffs, service level standards, and long-term debt agreements for R28.45 million to fund infrastructure. The Draft Service Delivery and Budget Implementation Plan (SDBIP) and procurement plan were also endorsed.
The Mayor extended his gratitude to the Director of Finance and team, the Municipal Manager, senior managers, councillors, and community stakeholders for their dedication in crafting and supporting a budget and vision that places the people of Oudtshoorn at the centre.
“Let us now work hard, together, to implement this budget with integrity and for the benefit of all our people,” the Mayor stated as he ended his budget Speech.