City budget under pressure

The municipality's reliance on tariffs to fund social services has made Windhoek one of the most expensive cities to live in.

10 September 2019 | Local News

The City of Windhoek has announced a 5% tariff increase on basic water supply, water consumption, household refuse removal, solid waste management and sewerage for the 2019/20 financial year.

The City said there were some water tariff adjustments that were wrongly gazetted. These have been corrected and affected customers will be credited.

Property tax has gone up by a whopping 15%. There is no tariff increase for electricity.

The increases will affect low-income Katutura residents by about 8%. For middle-income neighbourhoods such as Dorado Park it will mean an average increase of 10%, and 11% for high-income neighbourhoods.

These averages are calculated based on the total rates and taxes of sample households.

These may vary from one household to the next, depending on the property valuation. Water and electricity are subject to consumption tariffs.

Acting City CEO O'Brien Hekandjo said the ministry of urban and rural development had approved the adjusted tariffs.

Factors that are affecting the municipality's budget are the high unemployment rate in the city, high bulk costs charged by NamWater and NamPower, the increased pressure of urbanisation on the provision of basic services, a lack of funding assistance from the central government, and a reliance on land sales to fund operations.



Approved budget

The expected income for this financial year is N$4.7 billion; its expenses are anticipated to be N$4.5 billion. The surplus is only about N$130 million.

The social budget, which is included in the operational budget, accounts for the operations of the City Police (N$532.7 million), public transport (N$320.7 million), fire and other emergency services such as ambulance services (N$79.6 million), community services (N$13.7 million), and N$9 million for disaster management.

The social budget shows a deficit of N$494.6 million. The municipality carries the social budget, which is not funded by the central government. It generates about N$600 million from rates and taxes, which only goes towards the provision of services.

The City said only the central government can provide sustainable funding of the deficit. It said the reliance on tariffs to fund social services is unsustainable and makes the city one of the most expensive to live in.

One of the ways in which the municipality hopes to do to deal with the budget deficit is to maintain the salary budget below 34% or 35% of total spending.

It hopes to gradually increase repair and maintenance to 5% of its expenditure.

It intends to create a revolving fund from its land sales revenue, as well as fund its capital expenditure from a combination of debt and revolving funding.

It hopes for funding from the central government, as well as other donors, and loans to reduce its reliance on bulk suppliers, with, among other things, a 25-megawatt solar power plant.

It also intends to identify additional revenue such as the commercialisation of its fibre-optic network.

CATHERINE SASMAN

Similar News

 

Election 2019: Governance structure

3 days ago - 15 November 2019 | Local News

In this series, we look at the manifestos of political parties to see what they say on certain key issues. ALL PEOPLE'S PARTY (APP)· Rein...

Shanghala, Esau yiikutha miilonga

3 days ago - 15 November 2019 | Local News

Omapopyo goombumbo ngoka ga etitha eukitho iilonga lyOminista yUuyuki, Sacky Shanghala oshowo Ominista yOohi nOonzo dhOmomeya, Bernard Esau odha etitha oluhepo moofamili odhindji okupitila mekanitho...

Bribes linked to fishing job losses

4 days ago - 14 November 2019 | Local News

JEMIMA BEUKES AND OGONE TLHAGE Bribery allegations that led to the abrupt resignations yesterday of justice minister Sacky Shanghala and his fisheries counterpart Bernard Esau...

Taxman moves on fraud

4 days ago - 14 November 2019 | Local News

Tax commissioner Justus Mwafongwe says the use of good standing certificates may be one way to ensure that billions do not disappear from local circulation...

Opposition are 'baby donkeys' - Swartbooi

4 days ago - 14 November 2019 | Local News

Landless People's Movement (LPM) leader Bernadus Swartbooi has described fellow opposition parties as “young donkeys” that are being led around by their noses by Swapo.According...

Oshipangelo sha tindi omapopyo gaItula

4 days ago - 14 November 2019 | Local News

Omukomeho guundjolowele, John Hango, okwa popi kutya aapangwa ayehe moshipangelo shoka otaya pangwa taku landulwa omilandu dhuuministeli.Pethimbo a popitha aayambidhidhi ye mondoolopa yaHelao Nafidi, Itula...

Drought food scandal rocks Rundu

5 days ago - 13 November 2019 | Local News

The Rundu Urban constituency office has been accused of only registering residents aligned to Swapo to benefit from the drought relief food programme currently underway.Constituency...

Nujoma belongs to all - Diescho

5 days ago - 13 November 2019 | Local News

Academic and political commentator Joseph Diescho says founding president Sam Nujoma would not qualify to be the father of the nation, as he is currently...

New funding model urged

5 days ago - 13 November 2019 | Local News

Political parties are calling for a new state funding model that would level the playfield when it comes to election campaigning.The ruling Swapo Party says...

Tweya calls journalists 'bad Namibians'

5 days ago - 13 November 2019 | Local News

Industrialisation minister Tjekero Tweya launched a scathing attack on journalists yesterday, when he addressed a group of Emirati investors who presented an ambitious N$25 billion...

Latest News

August 26 CEO innovates

3 days ago - 15 November 2019 | Business

Elizabeth Joseph ...

Fishing quotas under scrutiny

3 days ago - 15 November 2019 | Fishing

President Hage Geingob and acting fisheries minister Albert Kawana will meet next week to discuss the credibility of the fishing quota allocation process, as well...

Geingob was 'talked out of'...

3 days ago - 15 November 2019 | Government

President Hage Geingob had written dismissal letters for ministers Sacky Shanghala and Bernhard Esau on Wednesday morning, but a high-level meeting that included Vice-president Nangolo...

Helping people help themselves

3 days ago - 15 November 2019 | People

Evany van WykMarjolize Scholtz has been a wellness professional for over 17 years. During her career her empathy towards people has grown immensely. Scholtz was...

Putting on a corporate...

3 days ago - 15 November 2019 | People

Elizabeth Joseph Margaret Thatcher once quipped that if you want something said, ask a man. If you want something done, ask a woman. Langford...

Fuelled by ­creativity

3 days ago - 15 November 2019 | People

Evany van Wyk “Every challenge is put on your path to groom you and build you and if I had the opportunity to change something...

A musician at heart

3 days ago - 15 November 2019 | People

Queen, Mumford and Sons, as well as Koos du Plessis are all musical influences that Ruan Greeff, or John Rock Prophet as you may know...

EVMs in the firing line

3 days ago - 15 November 2019 | Politics

Independent president candidate Panduleni Itula, the Electoral Commission of Namibia (ECN) and Swapo will square off in the electoral court on Tuesday, 19 November over...

Unshackling the toothless ACC

3 days ago - 15 November 2019 | Opinion

Much has been said about the Anti-Corruption Commission (ACC) over the years. Many have called it toothless.Revelations this week that it has been sitting on...

Load More