Windhoek tables N$4.9b budget
The City Council is not generating enough revenue from tariffs to cover its operating and capital expenses.
JEMIMA BEUKES
WINDHOEK
The City of Windhoek’s total budget amounts to N$4.9 billion, of which the bulk N$4.4 billion is needed for operating costs of which 35% goes to the salaries of over 1 900 staff members and the maintenance of the city’s existing infrastructure.
City councillor Fillemon Hambuda, who chairs the management committee, tabled the budget at the council’s recent ordinary meeting.
According to him, the estimated revenue is N$4.6 billion, resulting in an operational result of N$213 million which is mainly due to anticipated land sales of N$300 million and statutory funds of N$8 million.
He added that non-cash expenses of depreciation and defined benefits of N$666 million are not included in the budget and if included, would lead to a shortfall of N$453 million.
“This means that [the] council is not generating enough revenue from tariffs to cover its operating and capital expenses. The salary-related expenses will be analysed in the coming year to ensure that our human resources capacity speaks to the resources required to execute the Strategy and Transformation Plan,” he said.
Infrastructure
Hambuda added that the City has allocated N$46 million of its scarce resources to water and road infrastructure, N$174 million for electricity infrastructure and N$23 million to replace redundant vehicles.
A total of N$15 million will be used for the development and upgrading of markets and cemeteries, N$5 million for law enforcement services and N$10 million for informal settlement upgrading.
Hambuda said following the council’s approval of the pre-allocation of land to households on the City of Windhoek’s waiting list and informal settlement upgrading areas, the City plans to reach 5 000 pre-allocations in the informal settlements by February 2024.
Therefore this budget includes the construction of 100 affordable housing units in Goreangab Extension 4 while a number of projects will also be undertaken to provide sanitation, servicing of residential streets and upgrade of mid-block sewers in the informal settlements.
Housing
Meanwhile, a total of N$104 million is allocated for housing construction and to acquire property while N$61 million is to be used for information technology (IT) infrastructure throughout the city.
An additional N$30 million is set aside for the contingency fund while N$18 million is reserved for other project upgrading.
“Over the past few years, the capital budget faced increasing demands for the provision and maintenance of basic services infrastructure, but without an increase in the available resources.
“In fact, it has witnessed a diminishing revenue base thereby contributing to an imbalance between demand for better and improved services and limited resources. Coupled with this is the fact that for the past three financial years, only capital projects with secured funding were approved by the minister,” he said.
The majority of tariffs have not been increased for the 2021/22 financial year and will be amended once the Electricity Control Board (ECB) gives the greenlight, while a 5% of a tariff for electricity was included in the current budget.
A 5% tariff increase is also proposed for solid waste charges while no tariff increase of sewerage is yet proposed but water tariff adjustments will be made once NamWater communication comes through.
An increase of 6-7% for bus services for smart card and cash bus users is also in the pipeline.
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WINDHOEK
The City of Windhoek’s total budget amounts to N$4.9 billion, of which the bulk N$4.4 billion is needed for operating costs of which 35% goes to the salaries of over 1 900 staff members and the maintenance of the city’s existing infrastructure.
City councillor Fillemon Hambuda, who chairs the management committee, tabled the budget at the council’s recent ordinary meeting.
According to him, the estimated revenue is N$4.6 billion, resulting in an operational result of N$213 million which is mainly due to anticipated land sales of N$300 million and statutory funds of N$8 million.
He added that non-cash expenses of depreciation and defined benefits of N$666 million are not included in the budget and if included, would lead to a shortfall of N$453 million.
“This means that [the] council is not generating enough revenue from tariffs to cover its operating and capital expenses. The salary-related expenses will be analysed in the coming year to ensure that our human resources capacity speaks to the resources required to execute the Strategy and Transformation Plan,” he said.
Infrastructure
Hambuda added that the City has allocated N$46 million of its scarce resources to water and road infrastructure, N$174 million for electricity infrastructure and N$23 million to replace redundant vehicles.
A total of N$15 million will be used for the development and upgrading of markets and cemeteries, N$5 million for law enforcement services and N$10 million for informal settlement upgrading.
Hambuda said following the council’s approval of the pre-allocation of land to households on the City of Windhoek’s waiting list and informal settlement upgrading areas, the City plans to reach 5 000 pre-allocations in the informal settlements by February 2024.
Therefore this budget includes the construction of 100 affordable housing units in Goreangab Extension 4 while a number of projects will also be undertaken to provide sanitation, servicing of residential streets and upgrade of mid-block sewers in the informal settlements.
Housing
Meanwhile, a total of N$104 million is allocated for housing construction and to acquire property while N$61 million is to be used for information technology (IT) infrastructure throughout the city.
An additional N$30 million is set aside for the contingency fund while N$18 million is reserved for other project upgrading.
“Over the past few years, the capital budget faced increasing demands for the provision and maintenance of basic services infrastructure, but without an increase in the available resources.
“In fact, it has witnessed a diminishing revenue base thereby contributing to an imbalance between demand for better and improved services and limited resources. Coupled with this is the fact that for the past three financial years, only capital projects with secured funding were approved by the minister,” he said.
The majority of tariffs have not been increased for the 2021/22 financial year and will be amended once the Electricity Control Board (ECB) gives the greenlight, while a 5% of a tariff for electricity was included in the current budget.
A 5% tariff increase is also proposed for solid waste charges while no tariff increase of sewerage is yet proposed but water tariff adjustments will be made once NamWater communication comes through.
An increase of 6-7% for bus services for smart card and cash bus users is also in the pipeline.
[email protected]
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