Swakopmund overspent and underbudgeted in 2016/2017

During the financial year 2016/17, the Swakopmund municipality has over-spent more than N$2.86 million while at the same time did not budget enough for various other services, which amounts to an additional N$8.88 million. Town Council recently approved additional funds to make up for the shortfall.
According to the minutes of the last Council meeting, held at the end of November, the financial year end for 2016/17 is currently being finalised for external audit purposes. “The General Manager: Finance is seeking Council’s approval for additional funds and over expenditures for the financial year”, it states.
The main part of the shortfall in the budget is attributed to the purchase of bulk water from the national water utility NamWater: “The budgetary provisions was not sufficient to cater for the price increases of NamWater as well for the increased water supply, thus the additional amount of N$7 824 300 was required to pay for the water supply”, it states in the minutes.
An additional amount of N$474 000 was required as the budgetary provisions for security services were not sufficient with the compilation of the budget during April 2016. Similarly, an additional amount to the tune of N$400 000 is required to pay Erongo RED for bulk electricity supply. “As result of addition of buildings during the financial year such as the Multi-purpose Centre, the costs in respect of the electricity has also increased”, it states.
Additional funds to the tune of N$190 000 are payable to the Erongo Regional Council. This is explained with the fact that due to additional revenue generated through levying of rates and taxes on properties for the financial year, the 5% levy payable to the Regional Council has subsequently increased as well.
Besides these additional funds the over expenditures for the financial year amounted to an additional N$2 865 11.74. The main reasons for the over expenditures for various municipal departments is explained with insufficient budgetary provisions as well as annual salary increases which were not accommodated through savings.
Council during the recent meeting approved the additional funds to the tune of N$8 888 300 on the operational budget for the 2016/2017 financial year, while at the same time also approved the over expenditures amounting to N$2 865 11.74.