Today, during a full Council meeting, the Democratic Alliance (DA) in Ray Nkonyeni rejected the proposed budget for the 2026/2027 financial year.
Our decision stems from serious concerns regarding the municipality’s financial health, particularly the alarming fact that the budget is funded by a mere 3%. The proposed budget anticipates a modest 2.3% increase in income, yet 95% of rates income is earmarked for employee costs, leaving little room for essential investments in service delivery.
Furthermore, the budget allocates only 6% of the value of Property Plant and Equipment for Repairs and Maintenance, amounting to R124,238,821, which is inadequate given the growing number of capital items requiring maintenance. The overall capital projects budget of R145,174,784 shows a decrease from the previous year, further highlighting unsustainable financial planning.
The margins are perilously thin, the previous years failed budget relied on over R150 million in surplus funding, while the proposed budget 2026/2027 is only funded by R57 million, posing a significant risk to our municipality’s economic stability.
The DA acknowledges the pressing financial challenges facing our community and calls for an innovative turnaround strategy.
The DA proposes the following:
• Prioritise enhancing revenue collection through incentive schemes and significantly increase the Repairs and Maintenance budget.
• Reduce capital projects temporarily, engage local businesses, civic organisations, urban improvement precincts and NGO’s for innovative revenue generation streams.
• Streamline operations to maximise municipal service delivery.
• Reduce the use of outside consultants, focus on improving our road infrastructure and where possible, only occupy buildings we own.
• Focus on rates departments and town planning to assist development on the coast as an economic contributor.
The DA has identified that tourism is the biggest economic driver in Ray Nkonyeni and in order to foster this growth priority would be focused on roads infrastructure and law enforcement in the short term.
The DA is committed to addressing the fundamental needs of our community, fostering economic growth, and ensuring fiscal responsibility. We believe that with strategic planning and collaboration, we can pave the way for a prosperous future for Ray Nkonyeni Municipality.