In a presentation cut short by the exodus of several councillors resulting in the lack of a quorum, acting Chairman of the Mayor and City Council’s Finance Committee, Junior Garrett, yesterday announced that the budget for 2012 is approximately $1.94 billion. However, when debts are included, this figure elevates to $2.77 billion.
There was much controversy among councillors when the city’s statutory meeting was called yesterday as the issue of presenting the budget was brought forward. This was the result of an announcement made by Garrett that there were liabilities still to be considered. Conversely, Town Clerk Yonette Pluck-Cort indicated that this is nothing more than an assumption and asked to be advised of the liabilities that were not included.
Deputy Mayor Patricia Chase-Green, who was yesterday elected to this position on a full-time basis, explained that she had been approached by two members of the public who inquired about monies owed to them. This, she said, was a concern of hers and as such, she proceeded to question Garrett about the issue. This may serve as the “liabilities” spoken of, she said.
A furious Councillor Gladstone George then rose to his feet and asked what would happen if such persons constantly made inquiries of that nature. “What will happen if tomorrow or the next day someone else comes and asks about money? Will we have to keep waiting and waiting?” he questioned.
Shortly after, an agreement was made to have the presentation of the budget deferred to Wednesday. Within this period, it was stated, the public would be able to contact the council so a final submission of liabilities could be made. But when Pluck-Cort suggested that a large host of persons may be attracted by this, the councillors present elected to make the presentation with the documents that were readily available. The only objection made was by PNC Councillor, Eon Andrews, who upheld that the budget should be presented on Wednesday.
Garnett later took to the podium. “I revised the budget according to accounting and financial experience and in keeping with what is attainable,” he said.
He said that some works executed in the past were not possible owing to a lack of funds but assured the council that he has tailored a realistic budget to suit the “scarce and meagre” financial resources of the M&CC. According to Garrett, taxes should be reviewed every five years, however, this has not been done for the past 11 years and as a result, rates and taxes have not been increased.
“The value of $1 11 years ago is now 40cents. Our liabilities keep rolling over because we cannot afford to pay our debts.
There is no mechanism that will assure payments to us. If you don’t pay GPL they will cut you off right away… same thing with GT&T and GWI. In our situation, we have to beg and all sorts of things to ensure rate payers pay,” he explained.
Garrett reiterated that the 2012 budget was one with a difference and noted that it was the smallest in 12 years. In this budget, he said, will be a balance sheet, a cash roll statement and an income statement, which will allow the finance committee to monitor the activities of the council on a monthly basis.
“There will be checks and balances… where there are variants; necessary corrective actions will be taken. The city is like a business, it ought to be run like a business,” he suggested.
Garrett then went on to list the expected expenditure of the various departments as related to the revenue collected in each, coming to the conclusion that the Markets Department will make a huge profit. This section is expected to bring in $276 million, while spending $919,000.
The Town Clerk’s Department expected expenditure is $317.9 million and it is expected to raise $22 million, while the Constabulary Department is expected to spend $256 million and only make $6 million. This, Garrett said, has to be done as it caters for the security of the city.
The expenditure rate of the Treasury Department is estimated at $91 million. This department is expected to receive $1.46 billion in rates. The Public Health Department is expected to spend $175 million, while earning an income of $52 million; also, Solid Waste Management Department is expected to spend $310 million and make an estimated $6 million.
Garrett requested a “write off” of street lighting from the government which costs the council $825 million.
“My justification is over the years, this council has been saddled with paying for street lights… most of these bills are estimated.
There is no document to show that all street lights paid for are working. This is a national security and it should be the government’s responsibility,” he opined.
Also, Garrett indicated that the council had not reclaimed any value added tax since its introduction in 2007. “We are being taken to court for income tax and that department has millions in VAT. An estimate of $60 million would be recovered as a result of VAT reclaimed for the past two years. If allowed, since 2007, we will have almost doubled that,” he said.
Garrett also stated that liabilities at the end of 2011 came up to $1.049 million, most of which is owed to the Guyana Power & Light.
He further said that the council is in possession of assets which could bring in accumulated finds of about $14.3 billion. These include the markets, wharfs, cemeteries, playgrounds, fields among others.
After much of the presentation was complete, Councillor Shirley Shepherd departed from the meeting causing a meltdown of the quorum resulting in the discontinuation of Garnett’s presentation. He is expected to continue on Wednesday.
