City announces N.dollars 3.79 billion budget for 2016/17

03 Jul 2016 15:20pm
WINDHOEK, 03 JUL (NAMPA) – The City of Windhoek (CoW) on Thursday announced a budget of N.dollars 3.79 billion for the 2016/17 financial year.
Of this, N.dollars 3.61 billion will go towards the operational budget of the institution and the remaining N.dollars 179 million for the capital budget.
The budget was approved with the total deficit of N.dollars 125 million.
The capital budget covers the day-to-day activities of the City, which varies from electrification and human resources to replacement of sewage pipelines, amongst others, whereas the operational budget goes towards salaries.
CoW Chairperson of the Management Committee Matheus Amadhila made the revelation during the tabling of the CoW Budget Estimates for the 2016/17 financial year here on Thursday, adding the cost of operations is ever increasing.
“I must also inform you that the operational budget was also compiled under difficult circumstances as the cost of operations is ever increasing.”
He said the recent water and electrical tariffs by the Namibia Power Corporation (NamPower) and Namibia Water Corporation (NamWater) are the leading factors.
Namibia faces a critical water shortage due to the impending drought, especially in the central parts of the country, which prompted NamWater to introduce a 10 per cent increment in the bulk water tariffs to distributors such as the CoW.
The CoW also increased water service fees by the same percentage effective from the 01 July.
The City’s electricity tariffs are yet to be approved by the Electricity Control Board (ECB). However, NamPower has as of 30 June 2016 received approval of 16,71 per cent increase on its tariff from the ECB.
Other increments announced by the CoW are 10 per cent on the basic water tariff; 18 per cent on sewerage; 10 per cent on water consumption; property tax 10 per cent; household refuse removal 10 per cent; and 5 per cent on the availability charge.
Amadhila urged staff members of the CoW to work tirelessly to broaden the revenue base of the institution and to ensure the implementation of new initiatives that will yield more positive financial results.
He noted that a national intervention should be initiated in an effort to curb the impending crisis.
“Hence our repeated appeal for a national intervention in order to control and mitigate the burden of water and electricity tariff increases on our residents,” said Amadhila.
The population of Windhoek currently stands at about 325 858, of which majority 113 074 live in informal settlements. About 27 per cent are unemployed and without an income, and thus cannot afford the basic services, according to the Namibia Statistics Agency (NSA).