KNYSNA NEWS - Knysna Municipality has adopted a fully funded and forward-looking budget for the 2025/2026 financial year, one that prioritises financial stability, infrastructure investment and enhanced service delivery.
Knysna Mayor Thando Matika tabled the budget during Council’s most recent sitting on Thursday 5 June, outlining a balanced and responsive plan to address the evolving needs of the greater Knysna community.
“This is more than just a financial document - it is our action plan to uplift communities, invest in future growth, and improve financial sustainability,” said Matika.
“It was shaped through public engagement and reflects the values and aspirations of our residents.”
Total revenue budget
The municipality has approved a total revenue budget of R1.497b. This projection is based on sound economic trends, improved billing efficiency, and continued commitment to prudent financial planning.
The operating expenditure budget has been set at R1.263b, enabling the municipality to maintain and improve service delivery, protect infrastructure, and sustain core operations. Encouragingly,
the municipality anticipates an operating budget surplus of R234m, a sign of increased financial discipline and efficiency across departments.
Capital expenditure budget
A capital expenditure budget of R173m has also been approved and is fully funded. This allocation will support the maintenance and upgrading of critical infrastructure, including improvements to water and sanitation networks, expansion of the electricity distribution system, funding towards increasing the waste fleet, and enhancements to roads and stormwater systems.
"Even with a R5m reduction in national grant funding to the electrical services department, Knysna’s capital programme remains intact and geared towards economic stimulation and long-term resilience," said Matika.
"After accounting for both operating and capital allocations, the municipality expects a net budgeted surplus of R61m - providing a buffer against economic volatility and creating space for continued service improvements.
“Every cent of our capital budget is focused on improving lives and driving local economic growth. This is the foundation for future development.”
To maintain service levels amid rising costs, moderate tariff increases will take effect from 1 July:
Property rates: +4.3%
Electricity: +13% (business), +16% (domestic)
Water: +4.3%
Refuse removal: +20%
Sanitation: 70% of actual usage will be billed for all consumers. Domestic consumers will be charged for a maximum of 35 kilolitres, while business and other users are not subject to any usage limits.
In cases where actual charges fall below the calculated usage, a basic charge plus an additional 4.3% will apply. Indigent customers are exempt from this tariff.
Property valuation
The municipality will continue to offer a R35 000 rebate on the valuation of qualifying domestic properties and maintain social rebate structures for properties valued up to R700 000.
Indigent households will remain shielded from tariff increases and will continue to receive 6 kilolitres of water and 50kWh of free electricity monthly.
Development
While the financial and investment priorities form the backbone of the budget, the municipality is also laying the groundwork for sustainable development through long-term planning and community-centred programmes.
The recently adopted Water Services Development Plan, a requirement under the Water Services Act, represents a major step forward in ensuring reliable and sustainable water and sanitation services across Knysna.
Significant progress has also been made in reviewing the Knysna Municipal Spatial Development Framework and the Sedgefield Local Development Framework documents that will guide sustainable and economically integrated growth in line with the broader Integrated Development Plan.
Housing
On the housing front, the municipality has secured R33m from the provincial government to fund a range of projects. These include the construction of 34 units under the Vision 2002 project, 14 units in Hlalani, 20 units at the Khayalethu bungalows, 100 serviced sites in Sedgefield, and 10 sites in Flenters.
Tenders for the Smutsville project in Sedgefield have already closed, and a contractor will be appointed in July.
In addition, the municipality will continue its productive partnership with Khaya Lam, with a goal to register 1 000 title deeds in the new financial year - an important step toward ensuring secure land tenure for local residents.
“Secure home-ownership is transformative. It empowers our people and strengthens communities,” said Matika.
Administration
The administration will undergo changes to streamline internal processes and free up resources for core service delivery. Key technical vacancies will be filled, and the launch of a new online job application portal will further support transparent and efficient recruitment processes.
Community safety and emergency response capacity will also be enhanced with the acquisition of a new fire truck, valued at R2.072m and co-funded by Western Cape Provincial Government (R1.072m) and municipal own funding (R1m).
“The residents of greater Knysna must be thanked for their active participation in the recent budget consultation process," Matika said.
"Public participation strengthens our democracy and ensures that the choices we make reflect the needs of our people. This is not just a budget - it is a shared commitment to building a better, more resilient Knysna for all."
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