Georgetown M&CC presents $1.9B 2012 budget

IN presenting its 2012 $1.9B budget to the public yesterday, the Georgetown Mayor and City Council (M&CC) indicated its desire for government to take over all costs associated with street lighting.
But the government is quite firm in its decision that this is not a move it is willing to consider.
Following several delays and postponements, Acting Chairman of the Finance Committee, Junior Garrett, finally managed to make the presentation yesterday in City Hall’s chambers.
Deputy Mayor Patricia Chase-Green filled in for Mayor Hamilton Green, who is said to be out of the jurisdiction at present.
Several councillors and officers of the council were noticeably absent because the estimates were not supported by everyone. In fact, a division arose when Garrett attempted to present the proposals to the council, resulting in some councillors leaving the meeting.
In his presentation yesterday,  Garrett indicated the municipality’s interests in seeking government’s assistance for the write-off of $825M owing to the Guyana Power and Light (GPL)for street lighting, and for government to take over its responsibility from January 1, 2012.
He noted how the city council is billed and expected to pay for lights that may not be working, and hence there is no way of really knowing if value for money is being received.
“The City Council definitely does not have the ability to pay for street lighting without increasing rates and taxes.” Residential and commercial taxes will have to be increased a hundred percent if the council is to pay GPL, he said, and there is no guarantee that tax payers will have the ability to pay.
Garrett pointed out that over the last 11 years, GPL had no less than four tariff increases, Guyana Telephone and Telegraph (GT&T), three, and Guyana Water Incorporated, two.
He said if the $825M owing to GPL is to be paid by the council, garbage collection, drainage works and security services could be seriously affected.
But Minister within the Ministry of Local Government and Regional Development, Norman Whittaker, told this newspaper, following the City Council meeting, that the M&CC’s request for government to take over street lighting is not practical.
Within the legislation, Whittaker said it is normal for the municipality to take up such responsibilities and hence they must honour these obligations. He noted that the council cannot expect the government to take over just because it has built up a huge indebtedness.
He suggested that the council engage GPL to negotiate on its outstanding amounts, but reiterated that government will not be taking over these responsibilities.

Estimates
The estimated expenditure in the various departments is as follows: Town Clerk’s Department, $317,956,171; City Constabulary, $255,748,998; City Treasurer’s Department, $90,756,073; Public Health, $174,653,533; Solid Waste Management, $293,919,153; City Engineer’s Department, $517,318,878; Markets Department, $199,919,831; GPL Street Lighting, $825,000,000; and reduction liabilities, $95,364,091.
Estimated revenue collection is as follows: Town Clerk’s Department, $22,000,000; City Constabulary, $6,000,000; City Treasurer’s Department, $1,464,400,000; Public Health, $52,017,000; Solid Waste Management, $6,000,000; City Engineer’s Department, $58,305,600; Markets Department, $276,914,128; GPL Street Lighting, $825,000,000; and VAT recoverable, $60,000,000.
According to Garrett, the names of delinquent rate payers will be published in the press and they will subsequently be placed before the courts. In this vein, he said a special magistrate is needed to deal with municipal matters.

“Council will have an aggressive stance towards collection,” he said. The council does not intend to facilitate any more amnesty periods, as Garrett observed how the municipality ends up losing hundreds of millions of dollars in interest written off.
The council intends to spend $123M on garbage collection and by 2014, it is hoped that the municipality would be reliant on its own garbage facilities and would not have to use contractual services.
Drainage works are expected to cost $130M and security will be boosted in the City Constabulary with $31M. Markets and the abattoir will see repairs and maintenance to the value of $103M, and $47M will be spent on vehicles.
The sum of $15M was set aside for the acquisition of garbage trucks, and $18M was budgeted for computer software in the Treasury Department. Firearms and ammunition will be purchased to the value of $3.4M, and it is expected that $60M will be garnered by reclaiming VAT.
Garrett thanked Chairman of the Implementation Committee, Keith Burrowes, for the “sterling contribution” that he provided the council in its budget preparation.

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