{"id":297865,"date":"2026-06-04T14:41:15","date_gmt":"2026-06-04T12:41:15","guid":{"rendered":"https:\/\/novanews.co.za\/kougaexpress\/?p=297865"},"modified":"2026-06-04T14:41:17","modified_gmt":"2026-06-04T12:41:17","slug":"kouga-municipality-approves-r1-6bn-budget-amid-rising-costs","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/kougaexpress\/kouga-municipality-approves-r1-6bn-budget-amid-rising-costs\/","title":{"rendered":"Kouga Municipality approves R1.6bn budget amid rising costs"},"content":{"rendered":"\n<p><strong>KOUGA<\/strong> &#8211; Kouga Local Municipality has approved its 2026\/2027 Medium-Term Revenue and Expenditure Framework (MTREF) Budget, with infrastructure investment, financial sustainability and service delivery identified as primary spending priorities.<\/p>\n\n\n\n<p>The budget was passed in terms of Section 24 of the Municipal Finance Management Act during a virtual Ordinary Council Meeting held on 28 May 2026, following a public participation process aligned with the municipality&#8217;s Integrated Development Plan (IDP).\n<\/p>\n\n\n\n<p>Executive Mayor Hattingh Bornman said the budget sought to maintain services whilst managing cost pressures. <\/p>\n\n\n\n<p>&#8220;This budget is about protecting services that communities rely on every day, while continuing to invest where it matters most. Every allocation was carefully considered to ensure that we remain financially resilient without losing momentum in delivering infrastructure upgrades, maintaining assets and improving the quality of life across Kouga.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-operating-revenue\">Operating revenue\n<\/h2>\n\n\n\n<p>Total operating revenue for 2026\/2027 rose by 6.28% (R91.811 million) compared to the 2025\/2026 Adjustments Budget, bringing total operational revenue, excluding capital grants, to R1.554 billion. Rates and service charges are projected to grow from R1.031 billion in 2025\/2026 to R1.107 billion in 2026\/2027, reaching R1.272 billion by 2028\/2029.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-major-operating-revenue-streams-for-2026-2027-are\">Major operating revenue streams for 2026\/2027 are:\n<\/h2>\n\n\n\n<p>\u2022 Electricity: 33.39%\n<\/p>\n\n\n\n<p>\u2022 Property rates: 21.03%\n<\/p>\n\n\n\n<p>\u2022 Operating grants and subsidies: 14.4%\n<\/p>\n\n\n\n<p>\u2022 Water: 8.13%\n<\/p>\n\n\n\n<p>\u2022 Wastewater management: 5.05%\n<\/p>\n\n\n\n<p>\u2022 Waste management: 3.64%\n<\/p>\n\n\n\n<p>Bornman noted that bulk electricity cost increases are determined by the National Energy Regulator of South Africa (NERSA), whilst bulk water tariff increases are set by the Nelson Mandela Bay Metropolitan Municipality.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-operating-expenditure\">Operating expenditure\n<\/h2>\n\n\n\n<p>Operating expenditure for 2026\/2027 amounts to R1.621 billion, up 4.88% on the prior year&#8217;s adjusted budget.\n<\/p>\n\n\n\n<p>The principal expenditure drivers are:\n<\/p>\n\n\n\n<p>\u2022 Bulk electricity purchases: 29.88%\n<\/p>\n\n\n\n<p>\u2022 Contracted services: 9.59%\n<\/p>\n\n\n\n<p>\u2022 Depreciation: 6.69%\n<\/p>\n\n\n\n<p>\u2022 Inventory consumed: 6.34%\n<\/p>\n\n\n\n<p>\u2022 Debt impairment: 6.3%\n<\/p>\n\n\n\n<p>\u2022 Operational costs: 6.27%\n<\/p>\n\n\n\n<p>The operating budget will be funded primarily through service charges \u2014 electricity, water, sanitation and refuse collection (50.22%) \u2014 followed by property rates (21.03%) and national and provincial grants and subsidies (14.4%).\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-these-tariff-adjustments-will-take-effect-from-1-july\">These tariff adjustments will take effect from 1 July:\n<\/h2>\n\n\n\n<p>\u2022 Property rates: 4.5%\n<\/p>\n\n\n\n<p>\u2022 Water: 6.5%\n<\/p>\n\n\n\n<p>\u2022 Sanitation: 5%\n<\/p>\n\n\n\n<p>\u2022 Refuse: 5%\n<\/p>\n\n\n\n<p>\u2022 Electricity (average increase in income): 9.01%\n<\/p>\n\n\n\n<p>\u2022 Environmental Management Fee: 5%\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-capital-budget\">Capital budget\n<\/h2>\n\n\n\n<p>The approved capital budget for 2026\/2027 stands at R79.618 million, to be funded predominantly through government grants and subsidies in light of limited internal funding availability.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-property-rates-relief-measures\">Property rates relief measures\n<\/h2>\n\n\n\n<p>The Property Rates Policy includes these provisions:\n<\/p>\n\n\n\n<p>\u2022 Exemptions of up to R100 000, including the impermissible rate portion of R15 000, for qualifying Equitable Share recipients\n<\/p>\n\n\n\n<p>\u2022 Residential properties valued at up to R400 000, including the impermissible rate portion of R15 000\n<\/p>\n\n\n\n<p>\u2022 Rebates of up to R200 000 on one residential property for ratepayers aged 60 and older with a gross household income not exceeding R15 000 per month\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-indigent-support\">Indigent support\n<\/h2>\n\n\n\n<p>The free basic services threshold has been raised from two state pensions to R7 500 per month, and free basic electricity allocations have increased from 50kWh to 75kWh per month.\n<\/p>\n\n\n\n<p>Qualifying households will receive:\n<\/p>\n\n\n\n<p>\u2022 9 kilolitres of free water per month\n<\/p>\n\n\n\n<p>\u2022 Free minimum sanitation services\n<\/p>\n\n\n\n<p>\u2022 Weekly refuse removal\n<\/p>\n\n\n\n<p>The total cost of free basic services, including property rates rebates for indigent owners, amounts to R75.294 million for the 2026\/2027 financial year.\n<\/p>\n\n\n\n<p>The full MTREF Budget is available on the municipal website at www.kouga.gov.za under the documents section.<\/p>\n\n\n\n<p><strong>ALSO READ<\/strong>: <a href=\"https:\/\/novanews.co.za\/nsfas-tracks-down-former-students-owed-refunds-on-loan-overpayments\/\" type=\"link\" id=\"https:\/\/novanews.co.za\/nsfas-tracks-down-former-students-owed-refunds-on-loan-overpayments\/\">NSFAS tracks down former students owed refunds on loan overpayments<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kouga Municipality has approved its 2026\/2027 budget, prioritising infrastructure investment, service delivery and financial sustainability across the 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