“This budget is guided by the theme of sustaining the turnaround and leaving the City better than we found it. We inherited financial disarray, weakened controls, cost pressures, liquidity strain and institutional instability – the effects of which still shape governance today. The City of Tshwane is also recognised by the National Treasury as the leading municipality in the country in terms of reform implementation and fiscal recovery progress. We also acknowledge the role of our coalition partners in sustaining this turnaround,” mentioned Modise in his opening.

The budget is structured around six strategic priorities that guide and sustain this turnaround:

Priority 1: Financial stability and revenue enhancement
Priority 2: Economic revitalisation and investment attraction
Priority 3: Infrastructure development and service delivery acceleration
Priority 4: A safe and clean city
Priority 5: Social services and community well-being
Priority 6: Strengthening governance and customer care

For the 2026/27 financial year, the City of Tshwane tables a fully funded budget of R58.5 billion, comprising an operating budget of R55,7 billion and a capital budget of R2,8 billion.

Priority 1: Financial stability and revenue enhancement

While Eskom has effected an electricity tariff increase of 9,01%, the City has made a deliberate decision to limit its increase to 8,8% in order to cushion residents and absorb a portion of the financial impact of rising electricity costs.

Through initiatives such as Tshwane Ya Tima, improved billing, stronger debt collection and better meter management, the City is rebuilding a culture of payment, accountability and financial responsibility.

The City projects revenue growth of 6,9%, with an overall collection rate of 90%.
The revenue base is structured as follows:

Property rates revenue is projected at R11,8 billion
Service charges are projected to generate R33,3 billion
Interest on receivables contribute R2,7 billion

The City has prioritised the following revenue protection and sustainability interventions:

R110 million for the turnaround reduction of water losses
R60 million for electricity distribution loss reduction
R78 million for the prepaid electricity meter programme
R20 million for reservoir telemetry and bulk meters

These interventions aim to strengthen infrastructure efficiency, reduce non-revenue losses, improve billing accuracy and protect the long-term sustainability of municipal services.

The budget therefore provides for the following shared services and financial modernisation interventions:

R439 million for fleet management
R385 million for IT services
R237 million for the SAP S/4HANA upgrade programme
R59 million for computer equipment
R60,5 million for IT network upgrades
R27 million for cybersecurity improvements

The City remains mindful of the economic pressures faced by residents and customers, and tariff adjustments have therefore been approached responsibly and with affordability protections in mind.

The proposed adjustments are as follows:

Electricity: +8,8%
Water: +10%
Sanitation: +5%
Refuse removal: +4,1%
Property rates: +5%

Priority 2: Economic revitalisation and investment attraction

This budget aims to stimulate economic activity, restore investor confidence and reposition Tshwane as a competitive hub.

The subsidy to the Tshwane Economic Development Agency for 2026/27 amounts to R77,2 million.

An allocation of R2104 million has been made for the Tshwane Automotive Special Economic Zone bulk infrastructure in Region 6.

Market upgrades include R19,7 million for ripening centres, R27,6 million for cold storage and R45 million for market entry and exit infrastructure, strengthening agro-processing and food logistics.

Youth economic participation is supported through the R8 million Ithuba Youth Economic Development Programme, with nearly 3 000 young people registered.

Priority 3: Infrastructure development and service delivery acceleration

The City allocates R2,1 billion toward infrastructure development.

The Energy and Electricity Business Unit receives an allocation of R597,3 million in 2026/27, increasing to R836,5 million in 2027/28 and R748,4 million in 2028/29, for a total allocation of R2,182 billion over the Medium-term Revenue and Expenditure Framework (MTREF).

The department’s operating programmes include the following:

Bulk electricity purchases amounting to R18,8 billion
Infrastructure maintenance amounting to R378 million
Prepaid commissions amounting to R55,6 million

To the Water and Sanitation Business Unit, the City allocates R715,8 million in 2026/27, increasing to R1,070 billion in 2027/28 and R1,364 billion in 2028/29, for a total capital allocation of R3,150 billion over the MTREF.

The Water and Sanitation Business Unit operating programmes include the following:

R5,1 billion for Rand Water purchases
R121,9 million for waste water purification
R15,9 million for water purification works
R126,7 million for water tankers

Some key water and sanitation projects that will be prioritised in the 2026/27 financial year:

Waste water treatment upgrades: R158,9 million
Reservoir extensions: R53,9 million
Water pipe replacement: R101 million
Water conservation and demand management: R120 million

Additional citywide interventions include the following:

R101 million for water network pipe replacement
R120 million for water conservation and demand management
R20 million for reservoir telemetry and bulk meters
R10 million for reservoir fencing
R110 million for the turnaround reduction of water losses

The Roads and Transport Department receives an allocation of R402 million to improve mobility, road maintenance and transport connectivity across Tshwane.

The Roads and Transport Department operating programmes include the following:

R132,4 million for final compensation
R59 million for bus operations
R48 million for petrol and diesel
R33,4 million for automated fare collection systems

The Human Settlements Department’s operating programmes include the following:

R264,1 million for water tankers in informal areas
R90,4 million for chemical toilets
R19,9 million for informal settlement management

Major capital programmes include the following:

R147,3 million for bulk water provision
R127,9 million for bulk sewer infrastructure
R141,3 million for roads and storm water infrastructure

Priority 4: A safe and clean city

To strengthen community safety, this budget provides an allocation of R475 million for security services, R55,3 million for illegal land invasion prevention and R41,4 million for uniforms within the Tshwane Metro Police Department, ensuring that officers are properly equipped and deployed across the city,

In the coming financial year, we will continue investing in force multipliers such as R67,5 million for metro police technology, R17,5 million for a real-time crime control centre, R7,1 million for traffic policing equipment and R900 000 for weighbridges, strengthening enforcement capacity across Tshwane’s transport corridors and urban nodes.

This funded budget allocates R566 million for household refuse removal, supported by R33,4 million for plant and equipment rental and R28,2 million for vehicle rental, strengthening daily waste management operations across Tshwane’s urban, township and rural settlements.

Priority 5: Social services and community well-being

To sustain support for vulnerable households, the City has allocated R2,5 billion toward the Social Support Package, benefiting approximately 150 000 households through rates rebates, free basic water, free electricity, sanitation and refuse removal services.

A total allocation of R59,5 million has been made under the MTREF toward community and social development services.

Capital investment is further supported by R55,5 million for capital movables and equipment (Citywide), ensuring that community services are properly resourced and able to deliver effectively across all regions.

A total allocation has been made across key health programmes, including the following:

R30,6 million for drug and substance abuse response
R21,5 million for HIV, tuberculosis and sexually transmitted infection response
R12 million for Lusaka Clinic operationalisation

Priority 6: Strengthening governance and customer care

An amount of R19 million has been allocated towards internal audit functions, while R36,7 million has been set aside for forensic audit investigations to strengthen accountability and support the fight against corruption.

R20 million has been allocated under the Public Transport Network Operations Grant towards customer and client information systems, aimed at improving commuter communication, service accessibility and the overall user experience within the public transport network.

R210,4 million has been allocated towards debt collection services as part of ongoing efforts to improve revenue recovery and strengthen the City’s financial position.