Cape Town shifts millions in adjustment budget, adds R6m for flood damage - IOL
The City of Cape Town approved the Adjusted Budget for the 2026/27 financial year at a special council meeting .
The City of Cape Town council approved its 2026/27 adjustment budget, including an additional R6 million for flood-damaged community facilities and several reallocations for various projects.
The adjustments were in response to additional allocations in grant allocation and shifts between a dozen municipal programmes as some were reprioritised and others moved to coming years.
Tabling the Adjustment Budget at the special council meeting, mayoral committee member for finance Siseko Mbandezi said the budget was primarily incorporating an additional R6 million in Municipal Disaster Response Grant to help cover costs associated with the damage to community facilities following the April and May floods.
“These additional allocations and amendments were only published in the provincial gazette on 25 September 2026,” he said.
Mbandezi also said the Adjustment Budget also incorporated administrative transfers and virements that were already approved in accordance with the City's delegation policy.
“Importantly, the overall capital budget remains unchanged. The adjustment will have no detrimental impact on basic service delivery, and the city's budget remains fully funded in accordance with the Municipal Finance Management Act,” he said.
“These are necessary and responsible adjustments to ensure that our budget accurately reflects the City's current funding and expenditure requirements,” said Mbandezi when he proposed the approval of the Adjustment Budget.
An examination of the Adjusted Budget shows that the City reprioritised R4.8m from the upgrade of the Spencer Road Clinic for other priority projects within the the Community Services and Health Directorate.
It also shifted R1.2m from the security upgrades to supply and install windows at Leonsdale Clinic, which has been identified along with Town Two Clinic as a high risk facility as highlighted in the Public Protector report finding released in July 2026.
A total of R5.5m was allocated for the upgrade work at the Town Two Clinic.
“The upgrade project to appoint a construction contractor and professional service provider to deliver upgrades to the entryways, security guardhouse and registry facilities, design of new smoke detector installation by early 2027 in compliance with the Public Protector’s findings and recommendations,” reads the council document.
The report said R146m was shifted within the Water and Sanitation Directorate for fleet replacement backlogs due to insufficient budget allocations.
“Priority heavy and light vehicles requiring replacement including ageing assets, vehicles that have become uneconomical to repair and vehicles affected by theft, damage or insurance funding shortfalls.
It further said R11.1m in additional funding was allocated to bring forward work that was scheduled to be completed in 2027/28 in the upgrading of reservoirs.
“The fencing is a critical infrastructure security measure aimed at preventing unauthorised access, reducing the risk of vandalism and mitigating associated operations and safety risks.”
Other allocations include the review of the furniture replacement budget for the Office of the Mayor and R200 000 allocated to buy additional computers in the office of the executive director for corporate services to accommodate furniture requirements.
“Additional funding is required for the replacement of redundant office furniture, including executive workstations, storing units, wall unit, meeting table, high back swivel upholstered chairs and others in the executive director's suite,”reads the document.
The Adjusted Budget was voted without being put on a vote despite some of the opposition parties registering their objections.
Cape Independence Party councillor Jack Miller said the budget was yet another example of the DA's policy to tax the working middle classes and the most productive members of the economy so that the City can hand out free services to “economic migrants from the Eastern Cape”.
“Cape-Exit cannot support this budget as it is based upon economic premises which we have promised our members and supporters and Cape Town taxpayers that we cannot do. We cannot vote to approve something that is built upon daylight robbery. The mayor has openly said that 75% of Cape Town's taxes go towards providing free or subsidized services to the poor or unemployed,” he said.
ANC councilor Xolani Sotashe took issue with Miller referring to people from Eastern Cape as “economic migrants”.
“Councillor Miller continues to normalise racism in the council debates. He refers to people from the Eastern Cape as migrants in Cape Town. Who does Cape Town belong to?” said Sotashe.
Council Speaker Felicity Purchase said Miller’s statement was his freedom of speech.
“You don't have to agree with him, but he's entitled to say it. If you have an issue with something he said, you're welcome to lodge a complaint with my office,” Purchase said.
