Okahandja proposes 5% tariff hike

The Okahandja municipality has tabled a budget of N$278.1 million for the 2026/2027 financial year, representing a N$41.3 million increase from the previous budget of N$236.8 million.

During a community budget presentation on Saturday, the council said operating revenue for 2026/2027 is projected at N$224.4 million, while government subsidies and grants are expected to contribute a further N$53.7 million.

Tariffs for the financial year are recommended to increase by 5% across various consumer categories, including refuse collection, sewerage, water charges, basic charges, new connections, meter changes, prepaid water and emergency service fees.

Financial performance figures show the municipality recorded a deficit of N$62.4 million in FY2025, compared with deficits of N$37.4 million in FY2024 and N$44.1 million in FY2023.

Budget allocations

The municipality has allocated N$180.9 million toward operational costs.

This includes N$74.8 million for salaries and allowances, N$93 million for general expenses, N$11.5 million for repairs and maintenance, and N$1.6 million for redemption and interest. Capital projects account for a significant portion of the budget, with N$97.2 million earmarked for infrastructure development and service delivery improvements across the town.

Major capital projects include N$36 million for the construction of services in Extension 10 and Ekunde 4 and 5, N$10 million for sewer network repairs and upgrades, and N$6 million for road upgrading, including gravel and bitumen roads.

N$5.4 million has been allocated for equipment procurement, including a grader and tipper truck, while N$3.7 million is set aside for consulting services related to the sewer treatment plant.

Several smaller development initiatives are also included in the budget. These include N$2 million for a new dumping site, N$5 million for water meters, N$2 million for water network upgrading, and N$1.5 million for refuse wheelie bins for 1 000 households. In the sports and recreation sector, allocations include N$2 million for town hall renovations, N$1 million for a soccer field, and N$1 million for sports stadium development in Osona Village.

The municipality noted that several factors may impact budget implementation, including increases in bulk service tariffs, inflation forecasts ranging between 2.4% and 4.2%, unemployment, rapid urbanisation, population growth and ageing infrastructure.

Outstanding arrears have also continued to rise, reaching N$258.1 million in FY2025, up from N$244.8 million in FY2024.

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