Executive Mayor
Budget Speech
2026/2027 Budget
27 May 2026
Honourable Speaker
Deputy Executive Mayor
Chief Whip
Members of the Mayoral Committee
Councillors
City Manager, CFO and Executive Directors
Representatives of the media
Members of the public
Ladies and gentlemen
Good day,
It is a great privilege to deliver my budget speech and table the 2026/2027 budget. At a total of R4.5 billion, it is Drakenstein Municipality’s largest annual funded budget to date.
Speaker, as of May 2026, South Africa’s fiscal landscape has shifted from the immediate crisis of 2025 toward a period of cautious stabilisation. Minister Enoch Godongwana has maintained the Division of Revenue allocations, providing a stable R670 billion for provinces in the National Budget. However, in order to stabilise public debt, the National Budget has retained above inflation increases in sin tax and further increased the fuel levy.
While inflation has cooled to 3.1%, the cost of living remains a significant challenge. In 2026, innovation is no longer solely about survival; it is about leveraging a more efficient tax system to maintain fiscal discipline without stifling growth. This principle is also reflected in Drakenstein Municipality, which is at the forefront of innovative projects in key areas, whilst continuing to exercise sound fiscal discipline.
Drakenstein Municipality received its 11th clean audit opinion from the Auditor-General of South Africa for the 2024/2025 financial year. I want to thank the Deputy Executive Mayor, MMCs, Councillors, the City Manager, Chief Financial Officer, Executive Directors and all our staff for their contributions to this outstanding achievement.
Drakenstein Municipality’s main objective is to deliver excellent and affordable services to all our residents.
PUBLIC PARTICIPATION PROCESS
The Draft Integrated Development Plan (IDP), Budget, budget-related policies, and draft tariffs were tabled before Council on 30 March 2026 and approved for public participation.
Speaker, for the sixth consecutive year, Drakenstein Municipality successfully hosted a series of Community Open Days. Residents engaged with ward councillors and municipal officials, raised concerns and provided input into the draft Budget, IDP and Spatial Development Framework (SDF). Communities were notified of these engagements through various channels, including newspaper advertisements, pamphlet distribution, radio interviews, loud hailing, Facebook, the municipal website, SMS communication and via ward councillors.
The 33 wards were clustered into 10 Open Day sessions held from 14 April to 23 April 2026.
COMMENTS ON THE DRAFT BUDGET
Written comments were received on time from the Provincial IDP and Budget Assessment Team; Councillor Jacobs from CDR; Councillor Landsberg from the Freedom Front Plus; Councillor Maralack-Boonzaaier from the Patriotic Alliance; various civic society organisations, businesses and members of the community. All these comments were carefully scrutinised and considered.
In addition, all comments received on the proposed electricity tariffs, as required by the National Energy Regulator of South Africa (NERSA), were included and submitted as part of our application. NERSA has subsequently approved the electricity tariffs.
Detailed feedback on the comments received is attached to the budget item in Annexure A.
ECONOMIC AND FINANCIAL OVERVIEW
South Africa’s economy grew by 1.1% in 2025, following an increase growth of 0.5% in 2024, driven by increased economic activity in the finance, real estate and business services sectors. The Western Cape economy grew by 1.4% in 2025, which is double the growth of 0.7% recorded the year before and the biggest annual growth recorded since 2022. While official figures for the Drakenstein economy for 2025 are not yet available, new commercial and residential developments within the municipal area had grown the local economy to more than the R34 billion in 2024. The current figure is close to R40 billion.
Investment in retail developments in Drakenstein continues to gain momentum, with the construction of phase one of the Winelands Square and the Parelberg shopping centres completed during November 2025 and December 2025, respectively. Phase two of the Winelands Square development opened its doors on the 1st of May 2026. The Alleman Square development was also recently completed, and construction on the new Cecilia Junction retail development and comprehensive extensions to Paarl Mall have commenced. Within 5 years, 5 new shopping centres and a Suzuki vehicle dealership in Wellington have been completed.
The construction of new residential estates, including the Huguenot, Zanddrift, Firwoods and Le Boutonne Estates, is underway, while bulk infrastructure services are in progress for the first 400 housing units at the Fraaigelegen Precinct, which will unlock a total of 1 400 residential units. Construction of the new 140-bed Life Paarl Valley Hospital is progressing well and expected to open towards the end of 2027.
Motorists, commuters and transport operators are also enjoying the smooth and widened roads within the municipal area as a result of recent and continuing upgrades. The Huguenot Tunnel, a vital part of the N1 route in the Western Cape, is undergoing a major upgrade. This involves constructing a new North Bore tunnel alongside the existing South Bore, ultimately providing two lanes of traffic in each direction. The upgrade project is estimated to cost R5 billion and will take 3-4 years to complete. This will improve safety, reduce congestion, and boost the local economy.
All these developments have boosted business and investor confidence. The RMB/BER Business Confidence Index in South Africa increased to 47 in quarter one of 2026, the highest level since the second quarter of 2021. In the Western Cape, business confidence increased with 6 index points in 2025, influenced by three quarters of positive sentiment. A sustained improvement in confidence will ultimately depend on stronger demand, continued policy credibility and progress on structural reforms. Translating this improved confidence into durable growth remains the key test for 2026.
The various economic developments throughout the municipal area provide job opportunities for many residents. Drakenstein’s unemployment rate was recorded as 17.4% at the end of 2024, way below the national and provincial rates. As the economy continues to expand, the unemployment rate could currently be much lower.
The Western Cape’s economic growth prospects for 2026 will be shaped by a combination of external geopolitical risks, global trade conditions as well as local and environmental impacts. Escalating tensions in the Middle East remain a key risk.
One of the key revenue enhancement initiatives is a continued focus on promoting development and investment in Drakenstein. During the 2025/2026 financial year, land use rights were approved for 642 new residential opportunities, 6 518 square metres of new commercial developments, and 250 square metres of new industrial developments.
In addition to these accomplishments, land use applications for 1 588 new residential opportunities, 32 808 square metres of new commercial developments, and 24 000 square metres of new industrial developments are currently in process.
A total of 1 336 building plans were approved for the period from 1 July 2025 to date. The total value of the approved building plans is approximately R2.92 billion.
The approvals granted consist of:
1. 1 155 Residential building plans to the value of R2.08 billion;
2. 76 Commercial building plans to the value of R221.35 million;
3. 42 Agricultural building plans to the value of R83.14 million;
4. 31 Industrial building plans to the value of R48.3 million; and
5. The remaining 32 building plans represent a variety of other uses, including a major institutional development (private hospital) valued at approximately R415 million, contributing to a total of R485.8 million for this category.
The Business Area Management section continues to build business confidence in the area. The most recent achievements include an annual SeeClickFix success rate of 96% of customer service issues addressed. We are very proud of the R800 000 private sector investment in respect of the fencing of Wamakers Square parking in Paarl CBD.
2025/2026 BUDGET HIGHLIGHTS AND ACHIEVEMENTS
Speaker, during the past year, we have confirmed our record of excellent service delivery, good governance and sound financial management.
The latest Ratings Afrika report indicates that the financial sustainability index score of 73 in 2025 is an improvement from 39 in 2021, reflecting a significant improvement over the past 6 years. This high score demonstrates effective strategic planning, sound policies and strong management practices, underpinned by solid liquidity and infrastructure development.
Let us now reflect on some of the highlights of the past financial year:
1. FINANCIAL RATIOS
Key financial ratio achievements are, among others, the following:
1.1 Staff costs at 26.51% of our total operating budget, while the industry norm is between 25% and 40%;
1.2 Our Current Ratio (liquidity) improved from 2.19 in April 2025 to 2.51 in April 2026, while the industry norm is 1.5;
1.3 Water distribution losses are currently 18.7%, while the industry norm is 15% to 30%; and
1.4 Electricity losses are 6.34%, while the industry norm is 7% to 10%.
2. SERVICE DELIVERY AND PROJECTS
We previously made various commitments to our community. Let us reflect on some of the positive outcomes:
2.1 Budget allocations to the Vlakkeland Housing Project to date have contributed to the servicing of 942 sites and the construction and occupation of 755 houses since the start of the project. Planning is set to commence on phase two of the project in the coming financial year;
2.2 The installation of bulk and internal services at the Simondium project progressed well during the financial year with an anticipated 100% of the budget spent by 30 June 2026. The coming financial year will focus on finalising linking of services and construction of houses;
2.3 The continued development of Nieuwedrift Cemetery, a R3 million project to provide much-needed burial space in the area, is well underway. The next phase of the project will create additional burial spaces as well as suitable access roads and ablution facilities in the cemetery;
2.4 Basic services were upgraded in informal settlements at a cost of R2 million;
2.5 An estimated R459 million was spent on upgrading water and wastewater systems in Paarl and Wellington. This includes an amount of R426 million Budget Facility for Infrastructure (BFI) allocation received from National Treasury for the upgrade of our bulk sewerage network and treatment capacity at the Paarl Wastewater Treatment Works that will benefit the whole of Drakenstein;
2.6 Stormwater systems throughout Drakenstein were upgraded at a cost of R6 million;
2.7 The continuation of upgrading the capacity at the Dalweiding electricity substation and Vlakkeland switching station was increased to supply the new Vlakkeland housing development, at an estimated cost of R10.5 million. The upgrade of the substation created an additional firm capacity of 20 MVA;
2.8 R26.7 million was spent on upgrading electricity networks and replacing vandalised infrastructure; and
2.9 Roads and sidewalks across Drakenstein were upgraded and resealed at an estimated cost of R21.7 million, with an additional R25 million allocated specifically to rebuild Drommedaris Road.
CAPITAL AND OPERATING BUDGET 2026/2027
Speaker, the proposed total budget for the 2026/2027 financial year amounts to R4.5 billion, comprising of a R3.9 billion operating budget and a R569 million capital budget.
I will summarise the budget in terms of the following:
1. Expanded Public Works Programme (EPWP);
2. Ward Committee Support;
3. Land Use and Urbanisation Management;
4. Water and Sanitation, and Budget Facility Infrastructure (BFI) grant;
5. Electricity and Loadshedding Resilience;
6. Waste Management;
7. Roads and Stormwater;
8. Fleet Supplementation;
9. Sport Facilities, Parks and Cemeteries;
10. Tourism;
11. Public Safety and Municipal Court;
12. Community Development;
13. Financial Assistance to the Poor;
14. New Tariffs; and
15. Concluding Remarks.
EXPANDED PUBLIC WORKS PROGRAMME (EPWP)
Speaker, we must create job opportunities fairly and transparently. In this regard, the EPWP Policy and Procedures ensure that recruitment, selection, and contract administration are correctly implemented.
The budget allocation for EPWP for the 2026/2027 financial year makes provision for approximately 603 job opportunities at an estimated cost of R21.6 million. The National Department of Transport and Public Works’ EPWP Grant contributes R2.9 million, while Drakenstein Municipality contributes R18.7 million.
The programme will primarily focus on the following projects:
1. Solid waste, refuse removal, CBD cleaning and informal settlement hotspot cleaning projects;
2. Cleaning and maintenance of stormwater systems and catchpits;
3. Ensuring that our parks, public open spaces and road verges are well maintained;
4. Community facilities and services such as cemeteries, resorts, sports fields, and grass cutting;
5. Public safety projects such as peace officers, mountain and river patrols, security guards, and firefighter training;
6. Artisan training in the mechanical workshop;
7. Informal settlements and demolition of illegal structures; and
8. Maintenance of rental stock.
We will continue focusing on improving the efficiency of EPWP projects by applying the lessons learned from the illegal dumping hotspot project. These projects are based on performance management principles, where outputs are measured and remuneration is linked to the level of service achieved in specific areas.
WARD COMMITTEE SUPPORT
Speaker, to ensure visible change and a larger impact in communities through ward projects, it has been decided that ward allocations will be structured according to themes and will consist of the following projects:
1. Clean and Green Project;
2. Assisting disabled, elderly and youth through direct donations;
3. Direct donations to non-profit organisations (NPOs, ECDCs, Neighbourhood watches, etc); and
4. Job opportunities (community initiatives).
Each ward committee member will also receive a quarterly stipend of R900 for assisting the ward councillor.
LAND USE AND URBANISATION MANAGEMENT
Speaker, one of National Government’s mandates is to provide housing opportunities to all South Africans. Their inability to fulfil this mandate has forced Drakenstein Municipality to focus on the management of urbanisation, to manage the growing demand and the need for adequate housing opportunities. We have listened to our residents and are re-organising our approach, resources and focus. Drakenstein’s urbanisation and human settlement challenges are enormous. The number of backyard dwellers is rising – not only on private premises, but also at our rental stock units.
I know this will take time and additional resources, but it is an important process that needs to happen.
National housing legislation prescribes that a municipality must perform this function on behalf of National Government with financial assistance from the national fiscus.
In this regard, a grant allocation of R35.7 million has been awarded to the Municipality for the 2026/2027 financial year. The bulk of the funds will be used to complete the servicing of sites at the Simondium Housing Development and to commence construction of top structures. A Council contribution of R5 million is also earmarked for the 2026/2027 financial year.
Through the Informal Settlements Upgrading Partnership Grant, Drakenstein Municipality has been allocated R13 million for the installation of engineering services at the Lover’s Lane informal settlement.
The maintenance of aged municipal rental stock is high on the priority list. R10 million has been provided for the maintenance of rental stock and to rectify structural defects.
WATER AND SANITATION
1. Projects
One of the basic services that the Municipality is obligated to provide is clean drinking water and sanitation. We are budgeting R289 million for these services, which will include the following:
1.1 Rehabilitation and upgrading of the Paarl Wastewater Treatment Works – R250 million;
1.2 Replacement of equipment at Wellington Wastewater Treatment Works – R4.6 million;
1.3 Replacement and upgrading of water networks and bulk water meters – R20.4 million;
1.4 Upgrading and replacement of basic services in informal settlements – R6 million;
1.5 Upgrading and replacement of equipment and water meters for Water and Sanitation networks – R2 million; and
1.6 Replacement and upgrading of sewerage networks – R6 million.
2. Budget Facility for Infrastructure (BFI)
Due to the Municipality’s excellent track record in good governance and ability to spend capital budgets, we were awarded R1.4 billion by National Treasury to upgrade of our bulk sewerage network and Paarl Wastewater Treatment Works in the 2023/2024 financial year. This project will continue until early 2028 and benefit all our residents. The decision to award Drakenstein Municipality a BFI grant was a clear sign of a healthy investment climate.
It is also an endorsement of the Municipality’s competence to spend the allocated budget on infrastructure upgrades, in the interest of our broader community.
All procurement processes were completed in the current financial year. The construction of the Southern Paarl Bulk Sewer has been completed and the upgrading of the Paarl Wastewater Treatment Works is well underway. These projects aim to improve effluent quality, meet current service demands and support capacity for growth and future development across all areas of Paarl, Mbekweni, Simondium and Wellington.
ELECTRICITY
The 2026/2027 budget makes provision for R92.3 million to cater, inter alia, for the following electricity infrastructure projects:
1. Replace old equipment – R2.7 million;
2. Increase existing medium-tension network capacity – R2.7 million;
3. Increase existing low-tension network capacity – R1.2 million;
4. Construct a new 11kV Vlakkeland switching station – R11.8 million;
5. Drakenstein streetlights projects – R2.6 million;
6. New connections (BICLs) – R20 million;
7. Upgrading of SCADA system – R3 million; and
8. Electrical Infrastructure Upgrade Programme, which will include the electrification of informal settlements – R7.2 million.
WASTE MANAGEMENT
Speaker, waste management remains one of our biggest challenges in Drakenstein, the district and the province. We want our residents to take ownership of their environment and work with the Municipality to keep our streets and all our spaces clean. Only then will we win the war against waste. Several initiatives are being planned for this financial year to reduce and control illegal dumping and to ensure a clean, beautiful, and healthy Drakenstein for all.
The following initiatives will be implemented:
1. We will continue to provide and service skips in hotspot areas;
2. The EPWP hotspot programme is a ward-based cleaning project to keep the identified hotspot areas clean, with the support of EPWP workers and the Waste Management Services;
3. We will continue to use EPWP workers to clean specific problem areas on a scheduled basis; and
4. The Housing Inspectors will monitor the refuse removal in informal settlements, which is supplemented by the placement of three-cubic-metre skips for waste disposal.
The following provision has been made for waste management projects in the 2026/2027 financial year:
1. R3.3 million for purchasing skips and wheelie bins to ensure that a higher number of areas dispose of waste;
2. R1 million for planning and construction of the satellite drop-off stations;
3. R4 million for the design of a new cell for additional airspace and mechanical biological treatment of organic waste at the Wellington Landfill Site; and
4. R1 million for a wash bay for solid waste vehicles.
ROADS AND STORMWATER
Speaker, a well-developed and maintained integrated road network is of utmost importance. Therefore, the maintenance and upgrading of roads and stormwater infrastructure is a focus area, and we have provided R39.8 million for the 2026/2027 financial year.
The following provision has been made for roads and stormwater projects in the 2026/2027 financial year:
1. Planning for the upgrading of the Paarl Taxi Rank – R10.4 million;
2. Resealing of roads – R18.3 million;
3. Refurbishing of stormwater systems – R6 million; and
4. Upgrading of traffic lights, traffic calming measures, tarring of sidewalks, bus shelters, closing of walkways, and machinery and equipment – R4.4 million.
The upgrading of Main Road 201 to a dual carriageway between the N1 and Kliprug Road has been completed, thanks to a total contribution by Council of R80 million over the last four financial years. The project’s total cost amounted to R215 million. The project was implemented by the Provincial Government, which also provided the balance of the funding for this catalytic project. The project created approximately 240 job opportunities.
FLEET SUPPLEMENT PROGRAMME
Our fleet plays a critical role in supporting daily operations and ensuring efficient service delivery. We allocated R32 million towards supplementing and modernising our current fleet across all departments. This investment will enable us to build a more reliable and efficient fleet, ensuring that we continue to meet the service delivery needs of our communities.
SPORT FACILITIES, PARKS AND CEMETERIES
Speaker, we are excited to announce that Drakenstein, in partnership with Boland Cricket, is one of eight cities selected by the International Cricket Council to host the 2027 ICC Cricket World Cup.
Infrastructure for sport, parks and cemeteries is also an important focus area in our IDP, and we have allocated R11 million for this purpose in the 2026/2027 financial year.
The main capital projects include:
1. Mbekweni B and C soccer fields upgrades – R500 000;
2. Die Kraal sport facility – R2.5 million;
3. David Samaai tennis courts upgrade – R1.2 million;
4. Nieuwedrift Cemetery – R3 million;
5. The upgrading of swimming pools and tools of the trade in Gouda and Hermon – R800 000; and
6. Beautification of main roads, parks and playgrounds upgrades – R1.7 million.
TOURISM
The Municipality is making steady progress with the implementation of the new joint tourism agenda as agreed to in October 2024. This progress demonstrates that it is possible to collaborate and innovate when working towards the same goal of growing the sector in Drakenstein.
We are also pleased to announce that the Municipality has endorsed three Local Tourism Associations with a view to ensure the institutionalisation of focused destination marketing services throughout Drakenstein. The establishment of the voluntary Drakenstein Tourism Advisory Forum further confirms that tourism is indeed government-enabled and private sector-led.
The most notable achievements through these respective partnerships include all year-round targeted marketing campaigns to address seasonality and ensure broader participation. Our commitment to respond to the needs of the sector is further strengthened with the sizeable investment in strengthening our destination’s digital capabilities. This will ensure that tourism entrepreneurs have the required resources to participate at a local, regional, national and global level.
Events remain a key driver of tourism growth and impact. As such, we are pleased to provide our support for an array of events that attract both domestic and international visitors. With this said, we continue to strive towards improving our tourism offerings and have also identified the need to focus on continuous professional development amongst frontline staff.
It is important to highlight that the annual Drakenstein Festival of Lights will remain one of the Municipality’s signature local entertainment events, and we are happy to share that we will amend it slightly to include a more diverse offering. We are excited to add a sports element to it and will share the details closer to the time.
PUBLIC SAFETY
Speaker, the fundamental principle shaping our approach to improving public safety in the Municipality is the protection and welfare of our residents.
Drakenstein Municipality has achieved notable advancements in safety, fostering a more welcoming environment for investment that ultimately benefits our community and will continue to do so.
The Public Safety section has worked closely with key partners such as the South African Police Service, the Community Policing Forum, Neighbourhood Watches and private security companies to generate a lasting and meaningful impact through collaborative efforts. These partnerships have continued to grow stronger each year and we take pride in this ongoing progress.
The Green Rangers programme has improved safety protocols on Paarl Mountain and the Arboretum, ensuring the safety and well-being of those who come to enjoy these natural spaces; we plan to broaden this programme even further in the near future.
By maintaining ongoing engagement with the community, we have developed a targeted and visible strategy for enforcing bylaws.
The Drakenstein Operational Control Centre (DOCC) is set up for substantial growth and improvement over the coming financial years.
As previously highlighted, we will strengthen collaboration with safety partners and stakeholders to enhance incident response effectiveness. Our goal is to promote deeper integration to facilitate smooth sharing of essential data, information and expertise. We also intend to expand our network of strategically placed CCTV cameras beyond those already installed, coordinating them with our safety partners' systems to enable quicker and more efficient incident responses. This year, the focus is on upgrading the control room to facilitate monitoring and response. Additionally, we will utilise drone technology to deliver real-time aerial footage, greatly improving our ability to respond swiftly and effectively to any situation.
Traffic Services play a crucial role in public safety infrastructure. The Municipality has pioneered an innovative electronic learner’s licensing system, establishing itself as the leading authority in the province in this area and leading from the front.
A satellite testing centre was recently activated in Saron to service the communities of Saron, Gouda and Hermon. Services provided include the renewal of vehicle licenses, appointments for learner’s licenses and computerised learner’s license testing.
We are also embarking on roadshows, taking our service to the people, as a convenient way of settling outstanding traffic fines at different times and locations. These are communicated on the municipal website.
During the 2025/2026 financial year, the Fire and Rescue Services saw a substantial increase in the number of fires within and around Drakenstein. They also provided crucial assistance to the Cape Winelands District Municipality during a major fire outbreak in the dry summer season.
Throughout these challenging circumstances, the Fire and Rescue Services team demonstrated remarkable commitment and dedication to serving the community. They emphasised a collaborative approach, guided by existing intergovernmental agreements, to embody the spirit of community service and underscore the importance of shared responsibility for safety and security across the region.
Additionally, the Municipality undertook to employ Extended Public Works Programme (EPWP) workers as Cadet Firefighters in the new financial year for an extended period to help bolster manpower. This initiative aims to train and equip local youth to support firefighting efforts during these demanding times.
Furthermore, we plan to increase investments in the professional development of our officers and offer specialised training to address the varied needs of our community.
As part of our continuous efforts to enhance the safety and well-being of our community, we are committed to improving the reputation of the Public Safety section and building greater trust between the Municipality and our residents.
COMMUNITY DEVELOPMENT
General Projects
Speaker, today marks an important step forward in our commitment to care and compassion within our community. I am proud to announce the opening of three new soup kitchens in Wards 12, 16 and 32, expanding our reach to better serve the people of Drakenstein. With these additions, we now have 22 fully operational soup kitchens.
In essence, our soup kitchens are a clear expression of compassion in action, reinforcing the importance of dignity, support and shared responsibility in building a stronger Drakenstein.
Gender-Based Violence (GBV) and 365 Days of Activism
We firmly believe that the fight against Gender-Based Violence (GBV) is not a once-off campaign, but a sustained commitment that must be driven every single day of the year.
Drakenstein Municipality continues to lead with purpose in the national response to GBV. We are proud to be entering our fourth year of participation in the GBV 100 Days Challenge, reaffirming our commitment to driving meaningful, measurable change in our communities.
This work is strengthened through our dedicated Gender-Based Violence Hub, which provides critical support, coordination, and safe referral pathways for survivors. It serves as a central pillar in ensuring that victims are not only heard but supported with dignity and care.
In addition, our Fatherhood Programme plays a vital role in addressing the root causes of GBV by actively engaging men and fathers. The programme focuses on reshaping attitudes, strengthening positive masculinity, and reinforcing the responsibility of fathers as protectors, role models and agents of change in their households and communities.
Our broader GBV interventions continue to make a real impact, including:
1. Empowerment Through Education: GBV workshops that provide essential education, empowerment, and psychosocial support across communities;
2. Youth Engagement: Awareness campaigns in high schools that help shape positive attitudes and behaviours from an early age; and
3. Early Intervention: Domestic violence programmes in primary schools that deliver age-appropriate education and early prevention strategies.
Through these integrated efforts, Drakenstein Municipality continues to raise awareness, strengthen education, and build a culture rooted in accountability, respect and zero tolerance for violence.
Homeless People
Speaker, we are pleased to announce that increased capacity has been made available to better accommodate individuals in need of safe support and structured intervention.
At the heart of this approach is a clear focus on re-unification and re-integration. These interventions are not intended as permanent spaces of dependency, but as structured steppingstones designed to support individuals on a pathway back into society and, where possible, into the working community.
Our Social Development section will focus on a holistic and integrated approach to rebuilding lives and strengthening families. This includes:
1. Substance abuse support and rehabilitation referrals, ensuring individuals are connected to appropriate treatment and recovery pathways;
2. Family re-unification, which remains one of the most critical components in restoring stability, dignity, and supportive family structures;
3. Skills development and work-readiness training, aimed at equipping individuals with the tools needed to access sustainable opportunities;
4. Fatherhood Programme, which focuses on promoting responsible fathering, positive masculinity, and the active role of fathers in strengthening families and preventing social challenges such as neglect and violence; and
5. School Drop-Out Project, which targets early intervention by identifying at-risk youth, reducing school disengagement, and supporting learners to return to and remain within the education system.
FINANCIAL ASSISTANCE TO THE POOR
Speaker, we are always aware of the plight of the poor in Drakenstein and have therefore adjusted the qualifying income threshold to ensure that we help those in need. As of 30 April 2026, we have had 16 550 indigent households on our database.
A total of R215 million is provided through the equitable share, estimated to be spent on indigent benefits to assist the poorest of the poor in 2026/2027. This excludes the cost of refuse removal, sanitation and water provision in the 44 informal settlements.
For the current financial year until 31 March 2026, an amount of R21 million of outstanding indigent debt was written off in terms of the 50/50 principle, where 50% of the outstanding debt of indigent households is written off at the beginning of each year.
In an ongoing effort to assist the most vulnerable, it must be mentioned that Drakenstein’s indigent support is more than twice the national norm and significantly higher than that of our neighbouring municipalities.
Our Indigent Support Policy makes provision for the following benefits according to a sliding scale:
1. 6 Kilolitres of water every month;
2. 85 Electricity units (for Category A and B consumers) and 50 units (for Category C and D consumers) every month, plus basic charges for up to 30 Amp single-phase pre-paid or conventional electricity meters;
3. Refuse removal charges (once a week for one refuse bin);
4. Sewerage charge levy for one toilet plus basic charges for an erf size up to 550 square metres every month;
5. Assessment rates charged on valuation limited to R1 million per erf; and
6. Municipal rentals rebate equivalent to the maximum amount of the total basket of free basic services.
It should be noted that in response to the plight from the community we have increased the qualifying indigent income thresholds as follows:
1. Category A: R0 to R6 500, previously R5 000;
2. Category B: R6 501 to R7 500, previously R5 500;
3. Category C: R7 501 to R8 500, previously R6 500; and
4. Category D: R8 501 to R9 000, previously R7 000.
For the 2026/2027 budget, Drakenstein Municipality will increase the eligibility criteria with 30%, exclude child and foster care from the eligibility criteria, and cap the household income calculations at a maximum of two SASSA pension recipients, irrespective of the number of SASSA grant recipients living on the property.
NEW TARIFFS
Speaker, I want to assure the Council that robust internal and external financial discussions take place, as well as benchmarking exercises with neighbouring municipalities, to ensure that we implement fair and affordable tariffs.
This was illustrated without a doubt with the implementation of the capping concept in the current year, which ensured that our community is not severely affected due to the average increases in the property market values of between 50% and 60%.
While maintaining all key initiatives implemented during the current year and using the 2025/2026 financial year as baseline, the residential cent in the rand (base rate) will be increased only by 3.7% for the 2026/2027 financial year.
The proposed tariff increases for other services for the financial year 2026/2027 are as follows:
1. Water – 4.5%; the tariff proposed in March was adjusted downwards due to a lower-than-expected increase in bulk water purchases from the City of Cape Town;
2. Refuse Removal and Sanitation – 4.5%; and
3. Electricity – 6.3% average.
Speaker, I would like to take this opportunity to thank our ratepayers for honouring their commitments and paying their municipal accounts. The quality of services we render is only possible due to the cooperation of our community.
CONCLUDING REMARKS
Speaker, in conclusion, building on our successes of the past five years, the proposed final budget focuses on enabling economic development to help stimulate job creation, alleviate poverty, and improve people’s lives while maintaining financial sustainability. We want to grow Drakenstein into a thriving and highly efficient city, where our people can live, work, and play.
Drakenstein Municipality’s Vision 2032 and its strategic objectives are aligned to the district, provincial and national strategic objectives and outcomes.
The proposed final Budget, aligned with the IDP and SDF, is based on realistic revenue streams and is credible and sustainable, as confirmed by the assessment report from the Provincial Government.
I want to take this opportunity to thank the Deputy Executive Mayor, MMCs, City Manager, CFO, Executive Directors and all staff who played a role in compiling this budget.
Speaker, with these remarks, I table the 2026/2027 budget. The Deputy Executive Mayor, Alderman Gert Combrink, will now formally deal with the Budget Item.
Thank you.
