City Council tables a N$1,4 billion budget

WINDHOEK residents and ratepayers will have to cough up considerably more for water, electricity, refuse removal and property rates after the City Council approved substantial increases and passed a total budget of N$1,409 billion on Thursday.

Electricity is set to shoot up by 15,8 per cent, water consumption goes up by nine per cent, sewerage by 12 per cent and refuse removal by 3,5 per cent. Property assessment rates go up with 8 per cent.All rates are effective from July 1.”An average low income household will have to pay about N$45.45 more monthly while a middle income household will see a monthly increase of N$99,95 for municipal services and a high income household would see a N$244,68 increase per month,” said Councillor Dr Bjoern von Finckenstein, Chairman of the Management Committee of the Council.A high inflation rate of almost seven per cent in recent months, tariff increases by NamWater and NamPower and fuel increases of 24 per cent over the past year necessitated the steep increases, Von Finckenstein added.The City of Windhoek did not receive any Government subsidy.It relied solely on income from municipal services rendered to its residents.Against this, the Government ministries and parastatals ever so often lagged behind in paying the City for these services.”Where services are rendered, they must be paid for.If not the City will inevitably face not only a serious cash-flow situation but will also end up bankrupt,” he warned.”Outstanding debt has reached unacceptably high levels, currently in excess of N$200 million, despite increased efforts by the relevant departments to collect outstanding debt,” Von Finckenstein revealed.”The warning signals are on and everybody should be aware of this.Outstanding service accounts by Ministries and parastatals have been addressed at highest level,” he told fellow councillors.The operational budget of the City amounts to N$1,137 billion, of which N$272 million will go to capital projects and N$40 million to township development.Mayor Matheus Shikongo said the new budget reflected the City Council’s “response to the needs of residents, ratepayers and the business community, but with the constraints of the limited resources available”.”The challenges of the new budget are inter-related and must be addressed in a more holistic, sustainable and integrated way, involving all major stakeholders, driven through partnerships between the City, other spheres of Government, parastatals, civil society and the corporate sector,” Shikongo said.The electricity levy for the Electricity Control Board (ECB), for which each household is charged, will increase by 33,3 per cent, from N$0.0045 to N$0.060 per unit.A year ago, the Windhoek Municipality overcharged households by N$0,0005, wrongly deducting N$0,0050 each month.The ECB reprimanded the City for this step and it had to reimburse the residents.However, the City also overcharged electricity tariffs by 7 per cent, according to the ECB.Instead of increasing electricity with 10,2 per cent a year ago, the ECB accused the Windhoek municipality of increasing electricity tariffs to 17,2 per cent.The matter remains unresolved.The Windhoek Municipality must also contribute N$7,7 million to the budget of the Khomas Regional Council for the new financial year.The municipality has sent a letter to the Khomas Regional Council requesting it to help finance some of the municipal operations like the bus service.Property assessment rates go up with 8 per cent.All rates are effective from July 1.”An average low income household will have to pay about N$45.45 more monthly while a middle income household will see a monthly increase of N$99,95 for municipal services and a high income household would see a N$244,68 increase per month,” said Councillor Dr Bjoern von Finckenstein, Chairman of the Management Committee of the Council.A high inflation rate of almost seven per cent in recent months, tariff increases by NamWater and NamPower and fuel increases of 24 per cent over the past year necessitated the steep increases, Von Finckenstein added.The City of Windhoek did not receive any Government subsidy.It relied solely on income from municipal services rendered to its residents.Against this, the Government ministries and parastatals ever so often lagged behind in paying the City for these services.”Where services are rendered, they must be paid for.If not the City will inevitably face not only a serious cash-flow situation but will also end up bankrupt,” he warned.”Outstanding debt has reached unacceptably high levels, currently in excess of N$200 million, despite increased efforts by the relevant departments to collect outstanding debt,” Von Finckenstein revealed.”The warning signals are on and everybody should be aware of this.Outstanding service accounts by Ministries and parastatals have been addressed at highest level,” he told fellow councillors.The operational budget of the City amounts to N$1,137 billion, of which N$272 million will go to capital projects and N$40 million to township development.Mayor Matheus Shikongo said the new budget reflected the City Council’s “response to the needs of residents, ratepayers and the business community, but with the constraints of the limited resources available”.”The challenges of the new budget are inter-related and must be addressed in a more holistic, sustainable and integrated way, involving all major stakeholders, driven through partnerships between the City, other spheres of Government, parastatals, civil society and the corporate sector,” Shikongo said.The electricity levy for the Electricity Control Board (ECB), for which each household is charged, will increase by 33,3 per cent, from N$0.0045 to N$0.060 per unit.A year ago, the Windhoek Municipality overcharged households by N$0,0005, wrongly deducting N$0,0050 each month.The ECB reprimanded the City for this step and it had to reimburse the residents.However, the City also overcharged electricity tariffs by 7 per cent, according to the ECB.Instead of increasing electricity with 10,2 per cent a year ago, the ECB accused the Windhoek municipality of increasing electricity tariffs to 17,2 per cent.The matter remains unresolved.The Windhoek Municipality must also contribute N$7,7 million to the budget of the Khomas Regional Council for the new financial year.The municipality has sent a letter to the Khomas Regional Council requesting it to help finance some of the municipal operations like the bus service.