By Nkhensani Chauke
The Midvaal Local Municipality has achieved financial stability for the 2025/2026 fiscal year with the unanimous approval of a R2 billion budget and Integrated Development Plan (IDP).
The budget is a key component of the Medium Term Revenue and Expenditure Framework (MTREF), spanning the years 2025/2026 to 2027/2028.
According to the Office of the Executive Mayor, Peter Teixeira, the Draft IDP and MTREF reflect extensive consultations conducted over several months with various communities and stakeholders throughout the municipality.
“This R2 billion 2025/2026 MTREF was drafted with careful consideration of the challenging economic climate facing the people of Midvaal, as well as the wider challenges faced by South Africa,” the Office of the mayor said in a statement.
“It showcases a government that prioritises the well-being and interests of its residents. The MTREF budget is credible, effective, efficient, realistic and fully funded.”
Key highlights of the approved budget include tariff increases of 7% for assessment rates, water, and refuse collection; 6% for sanitation; and 12.7% for electricity, as approved by NERSA. The total expenditure budget of R2.111 billion reflects an 11.86% increase from the current financial year, driven primarily by the proposed 12.7% increase in Eskom’s electricity tariff.
Salaries account for 23% of the total expenditure, with a 5.01% provision made for salary increases. The budget also allocates 10.8% toward repairs and maintenance, and 8% toward Property, Plant and Equipment, in accordance with regulatory guidelines.
In terms of infrastructure, the municipality has set aside R69 million—through the Water Services Infrastructure Grant (WSIG)—to replace aging asbestos water pipes. This initiative aims to reduce water losses, improve revenue generation, and enhance the efficiency of the municipality’s water management systems.
“The municipality is continuing with Phase 3 of the electrification of Sicelo in Extension 5 (Silahliwe). In previous budgets, we allocated funding for phase 1 and 2 in Kuvukiland and Stand 118,” the office of the mayor said.
“We have also allocated R26 million for the construction of a substation in Savanna City, which will increase electricity capacity to support future housing developments.”
The municipality set aside R27 million in the 2024/2025 budget from loan finance for road rehabilitation and the conversion of gravel roads to tar.
Additionally, the municipality allocated R22 million in the 2025/2026 financial year to continue with rehabilitation and gravel to tar upgrades.
“The municipality has procured two high-speed vehicles for crime prevention purposes. We have made provision for the employment of Law Enforcement Officers who will drive these high-speed vehicles, working alongside our CCTV cameras and other safety mechanisms to curb criminal activities in our municipality. CCTV cameras are being rolled out in the Western and Northern regions, while a significant portion of the budget is being used to maintain existing cameras,” it said.
“The municipality will give rebates of 25% and 50% on property rates. The threshold for qualification has been extended to five times the value of the SASSA Old Age Pension Grant, which equates to approximately R11, 000.”
The mayor’s office further said that Midvaal will create an environment conducive to investment, growth and opportunities whilst making significant strides in improving the lives of residents.
“Through this budget and the pursuit of the IDP, we are confident that will continue providing excellent service delivery,” said the mayor’s office.
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