Otjiwarongo proposes 3% tariff hike in N$215.5m budget

The Otjiwarongo municipality has tabled a budget of N$215.5 million for the 2026/2027 financial year, with council placing strong emphasis on infrastructure maintenance, service delivery and social support.

Of the total N$215.5 million budget, N$50.8 million is allocated to capital projects, while N$164.7 million is earmarked for operational expenditure, including the maintenance of existing infrastructure.

Council indicated that estimated revenue also totals N$215.5 million, allowing the budget to balance with neither an operational surplus nor deficit.

Otjiwarongo, described as a key regional centre and the most populous local authority in the Otjozondjupa region, continues to experience steady in-migration, driven largely by rural-to-urban movement and the search for economic opportunities.

According to the latest census figures, the town is home to an estimated 54 000 residents, accounting for approximately one-third of the region’s population.

While this growth signals confidence, council noted that it continues to intensify pressure on the municipality’s ability to provide serviced land, water and sanitation, road infrastructure and waste management services.

A significant concern remains the ageing state of municipal infrastructure, including roads, sewer networks and water systems, all of which now require increased spending on repairs, maintenance and, in some cases, full replacement.

Council further revealed that outstanding debtors remain a major challenge, with arrears across businesses, government institutions, pensioners and residents standing at N$79.6 million as of March.

“These pressures are unfolding within a constrained operating environment,” council noted.

The council said high unemployment levels continue to affect some residents’ ability to meet their financial obligations, further impacting revenue collection.

To sustain service delivery and absorb rising operational costs, council has proposed a 3% tariff adjustment on selected municipal services, excluding water.

Budget outlay

In terms of expenditure priorities, employment-related costs account for 33% of the total budget, while general administration expenses make up 35%.

Repairs and maintenance are allocated 7%, capital charges for loan repayments and interest account for 1%, and capital development expenditure makes up 24% of the total budget.

The municipality’s operational revenue is expected to be supported by forecasted land sales of N$7 million, Road Fund Administration allocations of N$15 million, and a government subsidy of N$36 million.

Council also maintained its annual social support commitments, allocating N$3.98 million towards programmes aimed at assisting vulnerable residents, indigent households and the elderly.

This includes N$300 000 for sewerage subsidies, N$2 million for the provision of 3 000 litres of free monthly water, N$350 000 for subsidised solid waste services, N$300 000 for the annual elderly party, and N$834 910 for the Otjiwarongo Multi-Purpose Help Centre.

Capital expenditure will primarily be financed through N$36 million in grant funding from central government and N$15 million from the Road Fund Administration.

Council reaffirmed that the budget aligns with the municipality’s five-year strategic plan, annual work plans, national development plans, ministerial directives and stakeholder input.

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