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According to a recent report, the 2012 Budget was gazetted in March, after it was submitted late.
This led to council getting authority to effect new charges in the same month, thereby losing $1,6 million in the process.
Local authorities cannot charge new tariffs without the approval of the Ministry.
“Our Budget for 2012 was gazetted in March. Delays in gazetting saw council losing income amounting to $1,6 million for rates and solid waste management.
“As a lesson, we have learnt in the past year, council started the budget process early this year to also ensure that we meet the Ministry’s programmes and deadlines as well. It is our hope that the 2013 budget will be approved early and we would be able to effect the budget in January 2013,” read the report.
The bigger loss of potential revenue was $7 million when council was forced to review commercial rates downwards by 70 percent.
This followed an outcry from industry and commerce, most of whose members reportedly stayed away from consultation meetings in which the rates were set.
Local authorities do not need Ministerial approval for new rates, if property owners do not complain about them within a given period, before they are implemented.
“After successfully completing the revaluation exercise in 2011, council commenced billing new rates in January 2012, which were pegged in the 2012 budget. It was of concern that despite various efforts that had been made to engage stakeholders on the new property rates, this led to an outcry from industry and commerce,” read the report.
It is stated in the report that council was forced to reduce rates and tariffs for the Central Business District.
“Council lost income amounting to $7 million in the 2012 budget and we had to make efforts to reverse the loss. To ameliorate the loss, council re-introduced accrual of interest on overdue accounts at six percent per annum and increased the penalty rate to $2,63 per kilolitre above allocation,” read the report.
This year, council submitted its budget on 8 November.
Online Reporter