ONGWEDIVA – The Ongwediva Town Council has tabled its N$192.4 million budget for the 2024/25 financial year on Monday.
Presenting the budget, Ongwediva mayor Taarah Shalyefu said it is subject to approval by the Ministry of Urban and Rural Development.
He indicated that the allocation of the budget to the operational expenditure amounts to N$111.6 million, representing about 58% of the total budget.
He explained that the capital projects, operational expenditure and provisions make up a total budget of N$192.4 million.
“The personnel cost ratio to the operational budget stands at
35%, in compliance with the ministerial directive of not more than 40%,” he said.
However, Shalyefu noted that this ratio does not imply the availability of funds for additional personnel expenditure. Accordingly, the overtime budget has been limited to 2.6% of the personnel budget, compared to the prescribed ratio in the budget circular of not more than 2.5%.
Furthermore, the mayor said the maintenance budget amounts to 13% of the operational budget, in line with the budget circular that directs a rate of not less than 10%, while allowances for local authority councillors remained unchanged.
Moreover, Shalyefu indicated the tariffs shall not be increased for the financial year 2024/25, after careful evaluation of the current unfavourable economic conditions, and the impact that any increase in the current tariff structure may have on the consumers. Council, however, reserves its right and obligation to increase the water tariff, should Namwater announce an increase in bulk water purchases.
He emphasised that council will efficiently and effectively implement its projected plans, operational expenditure and developmental projects.
It will take into account the protracted reality of the high rate of unemployment, the high cost of living, the decline in local economic activities and the drought situation that has negatively impacted council’s socio-economic operations in general, and the 2024/25 budget in particular. -Nampa