ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
ETHEKWINI MUNICIPALITY’S EXECUTIVE COMMITTEE DECISIONS
MID-YEAR BUDGET AND PERFORMANCE ASSESSMENT REPORT FOR A PERIOD ENDED DECEMBER 2025
The City has reported a stable overall financial performance in its Mid-Year Budget and Performance Assessment Report, highlighting improved revenue collection and stable operational management for the first half of the 2025/26 financial year.
According to a report tabled at the Executive Committee meeting, the City maintained a 93 percent cash collection rate, consistent with the same period in the previous year.
Indication was also given that some of the key annual ratepayers have not yet made payments, including departments. When the funds are received, particularly from the Department of Public Works, where there is court order, the Municipal collection rate will then increase to above 93 percent.
This level of collection remains a key assumption underpinning the Municipality’s ability to meet its projected cash-on-hand target of between R5.8 billion and R5.9 billion by the end of the 2025/26 financial year.
This performance was further supported by an increase of R549 million, largely attributed to the successful collection of interest on arrear debts. The interest revenue had been budgeted at approximately R29 million per month, but the actual interest collected in December 2025 amounted to R99 million.
In addition, the ring-fenced water and sanitation surcharge levies, which were not originally budgeted for and will be addressed during the Adjustment budget, generated an additional R256 million in interest income.
These funds are expected to support critical water and sanitation services.
It was also acknowledged that the total outstanding creditors was higher than last year and will also be higher again in the following year because of the annual increase in the budget and in line with inflation.
In addition, there was a challenge in December 2025 for payment of creditors because of payment improvements in terms of the controls that the City implemented as requested by the Auditor General.
FOLLOW UP REPORT ON THE IMPLEMENTATION OF THE FIFTH GENERAL VALUATION (GV2026)
The City has made significant progress in the preparation of its Fifth General Valuation Roll (GV2026), in line with legislative requirements.
The Property Valuation and Management Directorate has successfully compiled the draft 2026 Valuation Roll, which is scheduled for submission to the City Manager on 30 January 2026.
The valuation roll has been prepared using internal municipal valuation resources, including data verification, market analysis, application of valuation methodologies, in line with the Municipal Property Rates Act (MPRA).
The Municipality will publish a notice in the provincial gazette on 12 February 2026, at which point property owners and stakeholders will be afforded an opportunity to review the valuation roll.
The closing date for objections has been set for 31 March 2026. Further details will be shared on communication platforms.
STATUS OF WATER SUPPLY ACROSS THE CITY
The City’s water supply remains generally stable, although intermittent outages continue to affect certain areas.
Parts of the southern region experience disruptions due to ongoing tie-in work on the Southern Aqueduct, as well as occasional bursts on the existing pipeline.
Water supply in the outer western areas remains stable, while other parts of the system are still experiencing erratic supply as recovery continues, following the shutdown of the 53 pipeline for repairs to a burst.
In the northern areas, water supply is reported to be stable in many communities.
The City has noted improvements in Ntuzuma and surrounding areas, following the re-commissioning of the Ntuzuma 2 Pump Station. However, some of the areas dependent on this pumpstation continue to be affected by persistent vandalism of pressure-reducing valves (PRVs).
Areas such as Trenance Park experience frequent supply interruptions due to power outages and are also recovering from increased seasonal demand.
The City further acknowledged that some areas remain without piped water due to the lack of formal water reticulation and uncontrolled migration.
These communities are being serviced through water tankers, and the City has committed to increased monitoring to ensure consistent and reliable water delivery.
In addition, multifaceted interventions to reduce non-revenue water are ongoing, with the objective of improving efficiency and redirecting water to productive use.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate
