Govt. will not approve increase in city’s rates and taxes – Min. Dharamlall
Nov 26, 2022 --- Source --- https://www.kaieteurnewsonline...axes-min-dharamlall/
By Shervin Belgrave
Kaieteur News – The People’s Progressive Party Civic (PPP/C) Government will not approve an increase in the City’s rates and taxes, Minister of Local Government, Nigel Dharamlall said Friday at a press conference.
“We [the PPP/C] have campaigned on a platform that we will not increase rates and taxes in this country and our government will ensure that rates and taxes will not be increased,” the Minister said.
Dharamlall was responding to calls by City Mayor Ubraj Narine for a hike in rates and taxes so that the Mayor and City Council is able to execute its mandate effectively. In August, Narine told reporters that there were property owners on Regent and Robb Streets that pay $16,000 and $20,000 a year in rates and taxes despite having five and six storey buildings.
The Mayor said a proposal was made for rates and taxes to be revaluated since no revaluation was done in the last 26 years but the government is not cooperating.
“…and the council cannot survive on the current tax rates,” Narine stated.
However, at Friday’s press conference Dharamlall, however said that even if the government decides to grant Narine’s request, he thinks that imposing higher fees on the people of Georgetown is ‘unconscionable’.
Dharamlall said that the City Council has access to enough resources to maintain the city and said the Council is cash-strapped because of bad management.
“Collectable revenue in the city over the last few years and historically is around $2.2B and the council has presented budgets on that revenue base,” the Minister said while noting that the Council has failed to pursue monies owed to it. Further, he said that the Council’s annual budget has large amounts of money allotted for employment costs and not for the maintenance for the city.
“Sixty percent of their budget goes to labour… hundreds of millions of dollars,” Dharamlall said while adding, “If you go through the budget, there is a miniscule amount of money placed towards solid waste management by the city of Georgetown and which is possibly the major issue that affects the management of Georgetown”
The Minister accused the Council of allocating “limited resources for enforcement through the city constabulary “but set aside tens of millions or even more for public relations [Services]”.
He told reporters that it is because of City Hall’s poor management that the Ministries of Local Government and Agriculture have been doing “most of the heavy lifting” to keep city clean and ensure that it is properly drained during the torrential rains experienced over the last few years.
Dharmalall made it clear that “imposing higher fees will not change the dynamics for the City Council… only getting its work done will”.
The Georgetown Mayor and City Council has been in a cash-strapped position for more than a decade. This has resulted in its inability to pay staff, contractors and other workers on time and take care of additional debt.
In August, Mayor Narine accepted that while bad management of resources has a role to play in the Council’s difficult circumstances, he said that the Government has also been stifling the Council. He said that by law, the Council should receive a yearly subvention of more than $700M but Government only provided $30M, this year.
That aside, the Mayor disclosed that the Government has not been approving many of its plans to rid the city of its financial woes. This resulted in the Council filing a deficit of over $71M in its 2022 budget.
