THE Ongwediva Town Council has tabled its provisional budget of N$147.1 million for the 2022/23 financial year on Wednesday.
Tabling the budget, Ongwediva Mayor Taarah Shalyefu said N$111.9 million will be shared for operational purposes, N$2 million for the sale of erven, and N$2.3 million goes to refunds of the Roads Fund Administration, while the council’s own reserves get N$30.9 million.
He stated that the budget was subject to approval by the Ministry of Urban and Rural Development.
The will be no government subsidy allocation to the council, and council tariffs will not be increased for the current financial year.
The council reserves its right and obligation to increase the water tariff should NamWater announce an increase in bulk water purchases to avoid a scenario where the council will be distributing water to its consumers at a loss.
“This shall be detrimental to the sustainable development of the town. The council will efficiently and effectively implement its projected plans, operational expenditure and developmental projects yet taking into account the protracted reality of the outbreak of the Covid-19 pandemic that has negatively impacted the council’s socio-economic operations, in general,” he said.
Shalyefu explained that the council is determined to address matters on the development of the town, such as land delivery, provision of services and service infrastructure, acquisition of machinery and equipment, crop field compensations and maintenance of service infrastructure.
Shalyefu said the allocation of the budget to the operational expenditure amounts to N$98.3 million representing 67% of the total budget. The allocation to provisions for leave days, depreciation and doubtful debts amounts to a combined N$26.5 million representing 18% of the total budget.
Capital projects, operational expenditure and provisions make up a total budget of N$147.1 million.
Shalyefu added that the personnel cost ratio to the operational budget stands at 36%, in compliance with the Ministerial Directive of not more than 40%. However, this ratio does not imply the availability of funds for additional personnel expenditure.
Accordingly, the overtime budget stands at 2.4% of the personnel budget in line with the Budget Circular of not more than 2.5%. The maintenance budget amounts to 12% of the operational budget in line with the Budget Circular that directs a rate of not less than 10%.
“Allowances for Local Authority Councillors have remained unchanged. An amount of N$357 806 has been set aside for the human resources development, representing about 0.4% of the operational budget,” he added.
Provision of a total amount of N$ 250 000 has been made in this budget to cater for incidental cases, emergencies and natural disasters, representing about 0.2% of the total budget.
Furthermore, a provision of N$2 million has been made to cater for the 5% rate contribution to the Oshana Regional Council in terms of Section 77 (1) of the Local Authorities Act, 1992 (Act No. 23 of 1992), as amended.