City’s proposed budget forecasts $2.9B in earnings for 2017
- 4% of revenue to come from parking fees
The City of Georgetown is projecting an annual income of $2.9 billion in 2017, with just over 4% or $120 million, coming from fees paid by citizens to park within the city.
In fact, according to the city’s proposed budget for next year, fees paid to the city from the implementation of the controversial parking meter contract is projected to be the lowest earner of revenue aside from the $24 million central government subvention.
When the Mayor and City Council of Georgetown met on Wednesday to discuss the proposed budget for 2017, the media was blocked from covering the meeting. Stabroek News has, however, been able to read a copy of the document presented to councillors by the city administration, led by Town Clerk Royston King.
According to this proposed budget, 60% of the city’s revenue or $1.745 billion will be earned from the payment of rates and taxes. This particular stream continues to be the highest revenue earner for the city, having accounted for $979 million of the $1.6 billion earned by the city between January and September, 2016.
Market fees are projected to be 10% of total earnings at $279 million, while other fees are expected to generate $323 million. Market fees totaled $246 million from January to September, 2016.
The parking meter fees will not be the only new fee paid to the council in 2017. The other, a contentious fee for the unloading of containers within the city limits, is projected to earn the $360 million. The actual sum which will be paid by businesses under bylaws passed to govern this new fee is not yet known; however, an interim fee of $5,000 added $12 million to the city’s coffers in September, according to the treasurer’s report for that month.
In total, the city is expected to earn just about $2.9 billion, dollars while it is expected to spend $3.7 billion for a deficit of $807 million. This shortfall does not include the present debt of the council, which totals $2.7 billion, as of September 30. $1.7 billion of that sum is owed to the Guyana Power and Light
(GPL). Major expenditures include employment cost, which is pegged at $1.2 billion, employment overhead, pegged at $482 million, operating cost, put at $615 million, maintenance expenses, put at $673 million, and capital expenses, which is put at $579 million.
An examination of the budget estimates showed no major projects beyond the purchase of vehicles and machinery, development of software programmes and purchase of street lamps and communication sets for the city constabulary. The largest allocation under capital expenses is proposed for unspecified developmental works, which are projected to cost the council $302 million.
However, further examination of various line items within the various departments showed that the city will be spending $16.5 million for vehicles and machinery within the Town Clerk’s Department. Stabroek News understands that $8.5 million of this sum has been budgeted to purchase a new duty-free vehicle for the Town Clerk.