Mayor presents Belize City Budget
Belize City Mayor Jose Coye this morning presented his council’s budget for fiscal year 1998-1999, which began on April first. In his review of the last twelve months at City Hall, the Mayor said the council’s development program budget for last year was cut by fifty percent by Central Government resulting in the reduction and even the cancellation of projects the council intended to undertake. These included an expansion to City Hall, a new maintenance building at Pound Yard and the purchase of needed equipment. Here are excerpts from the budget speech.
Jose Coye, Mayor, Belize City
“Not only did the Central Government undermine the funds for the institutional strengthening of City Hall, but to date, it has not amended the relevant laws as agreed – to transfer administrative and financial authority to City Hall. I wish to categorically state here that your Belize City Council did not and will not retrench workers. We believe we have the right size and the right approach: empower your workers, pay them a living wage, create an enabling environment that will motivate an enthuse them to greater productivity. In that way you the people will get so much more for less.
Of the $5.71 million total projected revenue, $6.19 million was actualized at the close of the financial year on Tuesday the thirty first of March, 1998. Of the $1.40 million subvention to have been actualized from the Central Government, we received $1.11 million, a short fall of $290,000. The Government not only went short on the subvention but also unjustly exacted from the Council’s revenue from the city a total of $288,000 of Value Added Tax.
The overall expenditure for the 97-98 financial year inclusive of personal emoluments, utilities, maintenance of infrastructure and equipment, public health and solid waste management, human resources development, traffic management, miscellaneous goods and services and death servicing amounted to $7.46 million causing an excess of expenditure over revenue. The resulting deficit of $160,000 was financed by suppliers credit.”
Coye said that overall improvement in revenue management and cost management was translated into visible results, mainly street improvements.
While City Hall was able to overcome its financial woes last year and still deliver most of its promised services, Mayor Coye says 1998 will not be any easier. But Coye says that with continued good fiscal management and prudent spending, the Council can once again pull a rabbit out of the hat.
Jose Coye
“The recurring expenditure proposed for the 98-99 fiscal year totals $8.46 million and will be allocated to the following service areas: solid waste management, traffic management, maintenance of infrastructure, drains, canals, coastal protection, bridges, parks, playgrounds, cemetery, markets, education, sports and culture, death servicing and general administration. The projected expenditure for 98-99 is 1 million, above the actual expenditure for 97-98.”
Q: “Last year you spent $7.4 million and that was still more than you have collected. This year you are spending $8 million, do you think you will have enough revenue?”
Jose Coye
“Yes, yes, we did receive the revenue as I said. We fell short because they have not refunded the Value Added Tax. If they had refunded to us the Value Added Tax we would have clearly covered the deficit.”
Q: “What makes you think they will refund the Value Added Tax this year?”
Jose Coye
“Well we are not saying that they will; we are wishing that the tax will be refunded to us. We are just hoping that the Government will come to realize that how can you, a Central Government, expect to take taxes from taxes.”
Q: “Eight million dollars, is that enough to run the affairs of the city?”
Jose Coye
“No, I think that we need to continue to look forward for an increase in revenue and I am confident that that increase will come without increasing the taxes. We have been able to do thorough analysis based on the information now available from the improvements we made here and I am very confident that the Council without increasing taxes but just by becoming more efficient in this whole revenue management system. In other words what we need to do is to go for the universal enrollment of all properties in the city and as I said in the budget to go for an equitable tax system right across the board.”
Following the budget presentation, each Councilor gave a report of works carried out under his or her respective portfolio during the year.
