THE City of Windhoek is forced to rely heavily on the sale of land to cover its operational cost because the local authority receives little to no support from central government for its financial operations while consumers are almost a billion dollars in arrears.
Acting Strategic Executive, Finance and Customer Service Manager, Samuel Mutonga revealed that, land sales for the 2018/19 financial year generated N$134million and for the 2019/20, the City expects total revenue of N$200million from the same activity.
“We are aware that the in years to come, land will not be available for purchase as it is not an infinite resource, so going forward, we want to be fully funded by tariffs.
He was speaking at the CoW 2019.20 Budget and Tariff presentation held in Windhoek, where he noted that the City decided to increase general tariffs as from July 2019 to accommodate some of the operational cost incurred.
General tariffs such as water, solid waste management, sewage, and household refuse removal have all increased by five percent that has been in effect since July 2019.
Mutonga said that the reasons for the tariff increase were caused by the high unemployment rate and rapid migration of people to the capital as well as high bulk cost from Nampower and Namwater.
“Most of the general tariff increases are affecting residents and some of the factors considered are high unemployment, high bulk cost from Nampower and Namwater,” he said.
Mutonga added that the City has recorded a total of N$900million in debtors outstanding from organizations and certain individuals.
“We have several strategies in place, the key one being disconnection but at this point, we want to try and come up with a method of prepaid water so it reduces the cost, “ he added.