GOOD Statement by Sarah Mabotsa,
GOOD City of Tshwane Councillor and MMC for Economic Development and Spatial Planning
27 March 2025
Today, Tshwane’s new Multiparty Coalition Government, of which GOOD is part of, has tabled a fully funded budget for public comment. This is the first time since 2021 that the residents are being asked to comment on a spending plan that correlates to the City’s financial status.
For the last 5 years, the City of Tshwane has been tabling budgets it couldn’t afford. By tabling unfunded budgets, the former DA-led administration was committing the capital city to spending more money than it had. The Auditor General of South Africa has raised concerns around Tshwane’s financial instability and the City, under the DA administration, with the City receiving negative qualified audit finding for its 2023/24 financial year last year.
The draft Budget for the 2025/26 financial year sets out an achievable plan to reduce costs, improve service delivery, promote economic growth and improve the financial sustainability of Tshwane.
We intend saving money by reducing some contractor services and propose a 5% overall reduction in spending on contractor costs. For example, these savings include a R140-million reduction in spending on renting refuse removal vehicles and water tanker services.
Whilst the City is working to save in some areas, spending on critical infrastructure – electricity (R482-million), roads and transport (R579-million), water and sanitation (R515-million) and new neighbourhoods for housing (R466-million) – remains a priority.
In approaching the rates and tariffs for 2025/26, the City has done everything possible to minimise the impact of the increases from both Eskom and Rand Water.
The proposed increases in water and electricity charges are lower than the increases that Eskom and Rand Water are implementing. I am pleased we were able to cushion our residents against some of the increases being imposed on us by our bulk suppliers.
The draft budget also proposes a reduction in property rates by 4% and further savings for residents through an additional R100,000 in property value zero rating that has been added, making the first R250,000 of a property’s value zero rated in terms of rates.
The deemed indigent threshold for home values has also been revised upwards from R150,000 to R250,000. This is a key step to broadening access to relief and ensuring that very low-income households can receive essential basic service support.
As leadership we have had to make tough choices to ensure financial stability in the future. We must fix the years of reckless overspending.
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