BUDGET SPEECH BY EXECUTIVE MAYOR JEREMY FASSER: A BUDGET FOR ALL THE PEOPLE

COUNCIL MEETING: 30 MAY 2025 – Stellenbosch Council Chambers

Honourable Speaker,

Deputy Mayor,

Members of the Mayoral Committee,

Chief Whip,

Fellow Councillors,

Municipal Manager,

Chief Financial Officer,

Directors,

Esteemed Colleagues,

Members of Team Stellenbosch,

Guests,

and Members of the Public,

Goeiemôre, molweni, as-salamu alaykum, good morning.

It is a great honour and privilege for me, as the Mayor of this remarkable municipality, to table the final budget to council. This budget is the product of rigorous planning, extensive public participation and a shared vision to build a resilient, inclusive and thriving Stellenbosch.

Today, I sit before you filled with gratitude and pride. Speaker, as you will know, over the past weeks, we opened the doors of engagement wide and our communities responded. From public meetings in all our areas and communities, to walk-ins at our offices, to the written submissions, emails and messages sent via our dedicated IDP WhatsApp line – and not forgetting the online submission portal on our municipal website – the voices of our residents have been heard loud and clear. I was also honoured to attend parts of the Stakeholder Engagement Sessions in the Town Hall myself and it was indeed productive sessions. Thank you to all who attended and participated in shaping our future.

This public participation process was not just a tick-box exercise. It was the embodiment of participatory democracy in action – a real opportunity for government and community to plan together. It was never just about the municipality presenting a spreadsheet of numbers. It is about shaping a budget with the people, a budget that truly reflects the priorities, concerns and aspirations of our communities. Because of this public engagement, we now have a budget that speaks to the real needs across the Stellenbosch Municipal Area – a budget that can deliver for ALL our residents.

At the heart of this budget is our unwavering commitment to infrastructure – both new investments and critically, the ongoing maintenance of what already exists. We’re talking about roads, stormwater systems, water and sanitation pipes, electricity cables, sidewalks, bridges, water treatment facilities and wastewater plants. We all know the stories from other municipalities where years of neglect have led to system failures and in some cases, the collapse of entire towns. That will not happen here. In Stellenbosch Municipality, we plan ahead, we maintain and we build – so that our towns thrive and our residents are properly served.

To every resident, every business, every interest group and stakeholder who gave their time and input – thank you. This is not just the municipality’s budget. This is YOUR budget. It reflects your hopes and concerns. And it will shape the future of our towns for years to come.

It gives me great honour to present to you today the final budget for the new financial year of 2025/26 in accordance with section 23 of Municipal Finance Management Act.

A BUDGET FOR ALL THE PEOPLE

Speaker, as mentioned, we present a budget today that speaks to the needs of all residents of our municipal area, from Langrug to Lanquedoc, Kylemore to Kayamandi, Jamestown to Johannesdal, Mostertsdrift to Ida’s Valley, Cloetesville to Klapmuts and Dalsig to Devon Valley. This is a budget that serves every ward, every community and every resident. From the outset my instruction to the administration has been clear and they have heard me: This must be a budget for ALL PEOPLE.

Speaker, as we table this item today, we must take cognisance of the economic reality in our country as well. As I have said earlier this year during the tabling of the Draft Budget, the South African economy has experienced over a decade of stagnation, with GDP growth averaging below 2%, which is far below the level needed to meet national needs. In 2024, growth was a mere 0.6% and is projected to average 1.8% over the medium term. National Treasury revised the 2024 forecast from 1.3% to 1.1%, attributing this to stop-start economic activity, stubborn inflation, and intermittent setbacks in structural reforms. Although domestic initiatives have reduced load shedding, its resurgence continues to threaten service delivery and the survival of many businesses. Rising living costs and persistent high unemployment add to the challenges faced by households.

Despite these challenges, Stellenbosch Municipality stands as a shining beacon of hope in a country where many municipalities are in crisis. While others struggle to keep the lights on, pay Eskom, provide clean water, repair infrastructure and even pay their own employees, we remain financially stable, transparent and accountable. Our clean audits over multiple years are not just a symbol of good governance – they are a testament to our unwavering commitment to financial responsibility and zero tolerance for corruption.

This municipality is built on integrity. We do not tolerate financial mismanagement and we demand the highest standards of accountability from all our officials. We ensure that every rand is spent wisely to provide services, attract investment, create jobs and offer opportunities for our people to thrive. Stellenbosch is not just a success story; it is a model for what local government should be – a place where all residents, regardless of background, receive the services they deserve.

TOTAL BUDGET OVERVIEW

The total budget quantum for the 2025/2026 financial year stands at R3 383 571 028, of which:

• R2 741 080 853 (81%) is allocated to the operating budget, ensuring day-to-day service delivery.
• R642 490 176 (19%) is dedicated to capital investment in key infrastructure projects.

STRATEGIC INTERVENTIONS USING THE CAPITAL EXPENDITURE FRAMEWORK (CEF)

Our municipality leverages the Capital Expenditure Framework (CEF) to address economic challenges and drive development.

Infrastructure Investment for Economic Growth

• Upgrading road and electrical networks, investing in mobility infrastructure and expanding the landfill site.
• Developing LED hubs to support entrepreneurship and SMEs.

Job Creation & Skills Development

• Investing in training programmes for residents and SMEs.
• Expanding public works programs for employment in construction and renewable energy.
• Ensuring that municipal construction projects employ at least 50% of semi-skilled labour and 100% of unskilled labour from local communities.
• Allocating R100 million over three years to the Extended Public Works Programme (EPWP).

Housing & Urban Development

• Prioritizing low-cost and affordable housing projects to accommodate population growth.
• Expanding water and sanitation services to meet urban demand.

Renewable Energy & Sustainability

• Investing in alternative energy solutions for key municipal buildings.
• Supporting climate resilience projects.
• Reducing reliance on Eskom by procuring renewable energy sources, which will also lower the cost of providing electricity.

Tourism & SME Support

• Allocating funds to improve tourist attractions.
• Strengthening local economic development by leasing municipal agricultural land to small farmers.

Financial Management & Economic Planning

• Ensuring fiscal responsibility through regular financial reporting and budget monitoring.
• Aligning budget priorities with the 2024-2025 Integrated Development Plan (IDP) to drive economic recovery and infrastructure expansion.

CAPITAL BUDGET HIGHLIGHTS

The capital budget has increased from R524 512 559 in 2024/2025 to R642 490 175 in 2025/2026 – a 22.49% increase in infrastructure services expenditure.

Major capital expenditure is planned in the following areas during the MTREF:

Water: R322 million to upgrade and expand bulk water supply infrastructure and replace aging pipelines. The major projects are:

• Sanitation: R263 million to upgrade the wastewater treatment works. The major projects are as follows:

• Electricity and Energy Security: R440 million for investing in renewable energy sources like solar energy, installation of alternative energy solutions at key municipal buildings to ensure business continuity.  The major projects are as follows:

• Roads and Traffic Management: R269 million for road rehabilitation, intersection upgrades, and non-motorized transport projects. The major projects are as follows:
•  

• Human Settlements: R155 million for social housing projects, backyarder support programs, and the development of integrated housing solutions.

The major projects are as follows:

• Safety and Security: R64 million for the expansion of CCTV surveillance, improved law enforcement, and enhanced fire and rescue services.

• Waste Management: R59 million to support landfill expansion, plant and vehicle projects, and recycling initiatives.

TARIFF INCREASES & FINANCIAL RELIEF MEASURES

We recognise the economic strain on our residents. As such, tariff increases have been kept as low as possible:

• Property Rates: -18.36%
• Electricity: 9.95% (despite Eskom’s 11.32% increase, we are absorbing some of the costs).
• Water: 6.00%
• Sanitation: 6.00%
• Refuse Removal: 6.90%

FINANCIAL SUPPORT AND PROTECTING THE VULNERABLE

We continue to support indigent households through our robust indigent policy, ensuring access to free basic services for qualifying residents. The question may be asked if we acknowledge the plight of the vulnerable residents like the elderly, the indigents, the child headed households and financially challenged. The answer is a positive YES. As a caring, financially stable and proactive local government, it is our job to ensure that money is spent in a way that makes life better for all the people of our municipal area. We have to do what we can to improve the lives of our residents by shielding the poor from extreme poverty and delivering better basic services to all residents. We must take into consideration the financial implications for every family, and we must aim to shield every resident from economic blows wherever we can, irrespective of their financial standing.

Speaker, we have one of the most progressive Indigent Policies in place to protect our most vulnerable residents. Through this policy, we provide support to households who are unable to pay or struggle to pay for their basic services. These consumers must apply to be registered as an indigent household on our indigent register in order to obtain these benefits or to qualify for rebates from their municipal basic services or property rates levied. The maximum qualifying income level defined as the Indigent Income Threshold for a household has been increased from R7 000 to R 7 500 per month.

For the new financial year, indigent households in the Stellenbosch Municipal Area will receive:

• free sanitation services;

• free refuse removal services;

• 6 kilolitres of free water per month; and

• 100 units of free electricity per month.

The Rates Policy was amended to allow for an additional R100 000 Reduction for Indigent Consumers over and above the total of R250 000 Reduction/Exclusion already granted to owners of residential properties.

Rates

In the 2025/2026 financial year, the Property Rates Tariff paid by owners will decrease with 18.36%, whilst total rates also increased with 7%. The new General Valuation Roll will be implemented on 01 July 2025. There will be an increase in valuations due to new properties being registered, improvements to existing properties and an increase in property valuations.  Rates rebates to senior citizens and disabled persons are also available as per the requirements of the amended Rates Policy to qualifying ratepayers with a monthly income of R15 000 or less.

Electricity

According to NERSA, the inclining block rate tariff structure is commonly used to charge water usage. The feature of this tariff structure is that the more you use, the higher the average price. The objective of the inclining block tariff is to provide protection for lower usage customers against high price increases resulting in a reduction in tariffs to these customers. This means that higher consumption customers will see increasingly punitive charges based on their electricity usage. Council’s attention is further drawn to the fact that the proposed electricity tariff is at 9.95% whereas the increase in electricity bulk purchases for the 2025/2026 financial year is 11.32% as approved by NERSA (National Electricity Regulator of South Africa) for implementation by all municipalities.

The municipality is in the process of procuring energy from renewable sources. The expectation is that renewable energy will cost less than what the Municipality is currently paying to Eskom, furthermore it will also reduce the reliance on Eskom. This will lower the cost of the providing electricity to residents and limit the impact of above inflation increases from Eskom.

This shows that we are trying our best to absorb as much pressure from our residents as we can to protect them from ESKOM and NERSA’S tariff hikes.

Water

Taking cognizance of the challenges that the country is currently experiencing due to the severe drought, the plight of the poor and the affordability of basic services, the average tariff increase for the rest of the consumptive water scales is 6.00%. The tariff is designed to cater for current and future capital investment in basic water infrastructure and the need to generate surpluses

Sewerage (Sanitation)

The proposed increase in this tariff is 6.00%. This tariff increase is necessitated by operational requirements, maintenance of existing aging infrastructure, new infrastructure financing/provision and to ensure that the service is delivered in a sustainable manner.

Refuse (Solid Waste)

The municipality will implement an above inflation tariff increase as this service does not cover the cost of providing the service. The solid waste tariffs were modelled to give effect to the principle of the service charge being cost reflective as the service cannot be cross-subsidized. It is proposed that the tariff increases by 6.90% because of the before mentioned.

GOOD GOVERNANCE & ACCOUNTABILITY

As custodians of public funds, we uphold the highest standards of transparency and accountability. Our municipality has achieved consecutive clean audits, reinforcing our commitment to responsible financial management.

A CALL TO ACTION

Speaker, this budget is not merely a set of numbers – it is a blueprint for growth, a commitment to service delivery and a vision for a better future.

We remain steadfast in our commitment to getting the basics done – and getting them done right. This means delivering better services to all our residents while maintaining an absolute zero-tolerance approach to fraud and corruption.

This budget of R3 383 571 028 is not ours – it belongs to the people. It is our duty to ensure that every cent is spent transparently and where it is needed most. For all the people!

While much of the country grapples with prolonged power outages, economic stagnation and failing infrastructure, Stellenbosch Municipality stands as a beacon of hope. Hope for a better future, hope for improved living conditions and hope for greater opportunities. Together, we can build a community where all residents can thrive.

Let us take hands and ensure that Stellenbosch remains a shining example of what local government can achieve when it truly serves its people.

In closing, Honourable Speaker, Councillors, and members of the public – this budget is more than a financial document. It is a reflection of our collective vision and commitment to building a resilient, inclusive and thriving Stellenbosch Municipality.

It prioritises service delivery, safeguards our infrastructure and positions us for sustainable growth. Let us now move forward, united in purpose, to implement this budget with integrity, urgency and accountability. Together, with our communities behind us, we WILL deliver on the promise of a better future for all who call this beautiful region home. I urge all councillors, regardless of political affiliation, to support this budget. This is a budget that will get things done for ALL residents.

I hereby proudly table the final budget for the 2025/2026 financial year for Council’s consideration.

Thank you, enkosi, baie dankie.