City of Tshwane Mayor Nasiphi Moya tabled the first Draft Budget for 2025/26, one that is the first fully funded since 2021.
The focus of the budget is reducing reliance on contracted services and strengthening the city’s internal capacity.
To achieve this, Tshwane has made significant cuts in outsourced services. This includes a R70-million reduction in watchmen services. And the funds are redirected towards building internal security capacity.
Cutting reliance on contractors
A further R70-million has been saved by cutting the rental of refuse removal vehicles, allowing the City to purchase its own fleet.
Another R70-million reduction in contracted water tankers has also been made. And the funds are being used to buy water tankers instead.
“The 5% reduction in contracted services compared to the 2024/25 Adjustments Budget marks an important step to reduce the city’s current reliance on contracted services in favour of building internal capacity.
Filling of critical vacancies
“A total of R300-million has also been set aside for the filling of critical vacancies to improve service delivery,” said Moya.
Despite ongoing financial pressures, the city has prioritised infrastructure investment to ensure that essential services are maintained.
The proposed capital budget for 2025/26 is R2.4-billion. It will increase to R3.2-billion by 2027/28.
She announced that this budget includes R482-million for electricity projects. These include prepaid meters, new connections, and substation upgrades.
Roads and transport have been allocated R579-million. This will go towards Bus Rapid Transit infrastructure, road resurfacing, and flood mitigation.
Water and sanitation will receive R515-million for projects such as reservoir extensions and wastewater treatment upgrades. This while R466-million has been set aside for human settlements. It includes bulk services, stormwater drainage, and access roads.
Affordability concerns for residents
Moya said the budget also takes into account affordability concerns for residents.
The city has worked to keep tariff increases in line with inflation. This while minimising the impact of rising costs from Eskom and Rand Water.
Moya emphasised that property rates will be reduced by 4% to offset increased property values in the new General Valuation Roll.
She said electricity tariffs will increase by 12%, which is lower than Eskom’s 12.74% rise. Water tariffs will go up by 13%, also below Rand Water’s 15.3% increase.
Sanitation fees will increase by 6%, and refuse removal charges will rise by 4.6%. A new fixed City Cleaning Levy of R185 per month will apply to those who use private refuse collection services.
“To give effect to Priority 5 (Social Services & Community Well-being) we have expanded support for our most vulnerable residents through a “Basic Basket of Services” aimed at alleviating the cost of municipal services.
More households in need to receive support
“Specifically, for 2025/26 the deemed indigent threshold has been revised upward from R150,000 to R250,000. This is under the new General Valuation Roll. The expansion marks a vital step towards broadening access to essential relief. And it ensures that more households in need receive the required support,” said Moya.
Moya encouraged residents to participate in the public consultation process. She said this will ensure that the final budget reflects the needs of the community.
She described the Draft Budget as a “balanced and responsible financial plan that seeks to address service delivery challenges while maintaining financial sustainability”.
