OUDTSHOORN NEWS - The following is the Budget Speech delivered by the Executive Mayor of the Greater Oudtshoorn Municipality, Johan Allers, during the ordinary council meeting on 5 June 2025. 

In his address, the Mayor outlined the 2025/2026 Medium-Term Revenue and Expenditure Framework (MTREF), which sets out the municipality’s financial and service delivery plans for the year ahead.

The Speech

It gives me great pleasure to present the Medium-Term Revenue and Expenditure Framework 2025/2026 (Budget) for Greater Oudtshoorn Municipality.

In so doing, please allow me to make a few observations:

This will be my first budget speech as Executive Mayor of Greater Oudtshoorn Municipality.

I am grateful to have been afforded this opportunity. Last year when I took on this responsibility I did so with a firm commitment not only to improve the lives of all our residents but also to restore the long-term financial viability of the municipality.

Only time will tell to what extent this endeavour has been successful, but I am hopeful that history will look kindly on this period in the development of Greater Oudtshoorn and her people. This budget builds on the work done by this administration over the past three to four years.

A budget must give expression to the strategy and policies of the Council, but it must also demonstrate our ability to impact positively on the lives of our people. In short, a budget is not just about numbers, but more importantly, it should be the instrument that facilitates positive change for all our diverse communities.

Honourable Speaker, I am therefore pleased to be able to present:

• a budget that promotes job opportunities,
• a budget that is firmly based on good, affordable service delivery,
• a budget that provides for the upkeep and improvement of vital infrastructure, and
• a budget that has at its very heart a system of good governance, transparency, and accountability.

The economic outlook for our municipality and the country remains uncertain and complex. The consequences of the unstable economy in our country are far-reaching and it will continue to affect every town and every community in South Africa for many years to come.

Aiding economic recovery and protecting jobs are critical components of our short to medium-term strategy for growth and development.

However, the economic recovery that we all so dearly desire depends partly on all of us, to work together and prioritise our town, region, province and country above party politics. This is to allow for increased tourism and other business activities which will contribute to economic growth and job creation.

Over the next two to three years, the municipality will have to adjust to significant changes in national and provincial expenditure plans. All municipalities rely on a variety of grants to supplement budgets, especially when it comes to the expansion of infrastructure, improved service delivery, and free basic services for indigent residents.

Fortunately, the residents of Greater Oudtshoorn have the assurance that, given our string of Clean and Unqualified Audits over the past years, every penny of our budget can be accounted for. In this municipality, under GLU (Government of Local Unity) leadership, we have stopped the corruption, mismanagement, and theft of taxpayers’ money, and we make sure, that the people’s money is spent on the people, and not on the politicians!

Honourable Speaker, we can be particularly proud of various capital projects throughout the municipality under this GLU-led administration.

Our budget speaks to improve:

• Water

As for water, our biggest concern is the constant pipe-breaks, and water interruptions in Oudtshoorn but more especially in Dysselsdorp and De Rust. This requires urgent upgrades. A comprehensive business plan is currently being prepared to be submitted to various government departments for additional grant funding to upgrade the total network throughout Greater Oudtshoorn.

Water remains a critical resource, and the public needs to be encouraged to be more circumspect in using this finite resource.

The destruction of municipal infrastructure is of growing concern to the administration, especially when a critical service such as water is affected. The senseless destruction of infrastructure should be addressed by all who value affordable service delivery, and I appeal to the public to assist us in bringing the culprits to book.

• Waste Management

The municipality continues to experience challenges in waste management generally, but I am glad to say that there has been a remarkable improvement over the past year or so.

The municipality is currently engaged in ongoing negotiations with various stakeholders to find the most cost-effective long-term solutions to solid waste management. It is unfortunate that some residents continue with the practice of illegally dumping garden refuse, building rubble and domestic refuse at various open spaces which compels the municipality to clean up such areas at great additional cost.

I hereby call on all residents to help the municipality in identifying the transgressors and appeal to all stakeholders to help promote a clean environment and greater civic pride.

Operating budget

The total operating revenue of R1, 067 billion has increased by only 9.45% in the 2025/2026 financial year from the previous financial year.

The total operating expenditure for the 2025/2026 financial year has been appropriated at R1, 083 billion, resulting in an operating budget deficit of R16,4 million. When capital grants are included there accounting surplus of R25.8 million is realized.

Honourable Speaker, it is important and praiseworthy to note that the budget presented to Council for MTREF 2025/2026 is both realistic and cash-backed, with an anticipated cash surplus of R163 million.

I wish to emphasise that it is a remarkable achievement to continue to deliver high levels of quality service without a budget deficit or heavy borrowing.

The expenditure on repair and maintenance is R32 million which represents 3.2% of the expenditure budget. From this allocation:

• R7.2 million will be spent on roads maintenance,
• R 6.4 million on the electricity network and
• R5.9 million on water and sewerage networks.

Bulk purchases are directly influenced by the purchase of electricity from Eskom. The annual price increase of 11.32 % has been factored into the budget appropriations and directly impact the revenue provisions. Bulk purchases represent 29% (R315 million) of operating expenditure for the 2025/2026 financial year.

Tariffs

Tariff-setting is a pivotal and strategic part of the compilation of any budget. One cannot simply raise rates and tariffs without seriously considering local economic conditions, the plight of the poor, and indeed the well-being of all residents.

Whilst it might be tempting, especially in an upcoming Election year, for some to play politics with rates and taxes, it is of utmost importance that we act with the greatest responsibility to safeguard the financial sustainability of the municipality.

Revenue generated from rates and service charges forms a significant percentage of the revenue of the Municipality, namely 72.6% of the total revenue mix. This high percentage is largely due to the share that the sale of electricity contributes, which is in turn due to the consistently steep increases in Eskom tariffs for bulk electricity over the past few years.

The proposed tariff increases are set as follows:

• Property Rates 6%
• Electricity 13% (to be finalised by NERSA)
• Water 0% (Average between the scales). Only conventional basic charges have been restructured, and a new basic charge for pre-paid water meters will be introduced.
• Refuse Removal 12% due to still not yet cost reflective
• Sewerage 6%

The combined impact on the municipal account varies between 10 and 11 per cent mostly because of the electricity price increases and refuse removal tariffs, if electricity is excluded the impact on the municipal account is 6 per cent.

It must be noted that the Customer Care, Credit Control and Debt Collection Policy is amended annually based on inputs received from various community meetings, as well as proposals received from the Mayoral Committee and management.

As a government responsive to the needs of our people we are constantly looking at ways of improving our services and policies.

Capital budget

The capital budget of R81 million for 2025/26 is the largest allocation over the past 3 years mainly due additional sources of grants from National and Provincial Government.

The capital budget will be funded from Conditional Grants, Borrowings and limited own funds.

Conclusion

Honourable Speaker, in conclusion, may I say it is a great privilege to be in the service of the people of this municipality and to contribute to improve the life’s our Oudtshoorn residents.

As far as this Budget is concerned may I extend a special word of thanks to our Director of Finance and his staff for their skill full and diligent work in producing a budget which meets the highest standards of service delivery and affordability.

I also wish to thank the Municipal Manager for his leadership and advice, and for sharing a vision of excellence for this institution, and indeed to every senior manager my appreciation for their sustained efforts in lifting our municipality to new heights.

My appreciation also goes to all those Councillors, members of staff, and members of the public who continue to give their very best for the municipality and the communities we serve.

We must continually strive to provide the best possible services at the most affordable price for all.

We must never compromise on good governance, sound financial management, and ethical leadership.

Let us now, within the spirit of freedom, fairness, and opportunity for all, work hard to implement this budget for the benefit of all our people.

Speaker I once again table for approval the Medium-Term Revenue and Expenditure Framework 2025/2026 (Budget) for Greater Oudtshoorn Municipality.

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