Ratepayers in Nelson Mandela Bay brace for steep increases as the council debates a newly proposed budget, raising alarm over service delivery failures and financial difficulties.
The Nelson Mandela Bay metro's initial budget, presented to the National Treasury on 18 May, was unfunded and sent back for the metro to cut costs, including international travel and the Assistance to the Poor programme.
With dwindling collection rates, sky-high electricity and water losses and pressure to increase the price of basic services, the budget report makes for grim reading.
Read more Nelson Mandela Bay metro records a R1.58bn loss for past financial year September 26, 2025 The council will debate the revised budget on Thursday, June 4. Once approved, the new tariffs for water, electricity, and other services will take effect on 1 July. Current projections are that residents will face steep rate increases.
Out of time
The budget was delayed because the Treasury rejected the initial draft as unfunded. Under the Municipal Finance Management Act (MFMA), budgets must be approved 30 days before the new financial year begins and must rely strictly on realistic revenue projections, cash reserves, or capital project loans. Because the original draft failed to meet these funding requirements, it could not be recommended to the council for approval.
According to the budget report, the Treasury held a meeting "to...
