The Councillors of the City Council engaged in a heated debate on Monday on whether to offer salary increases to its more than 500 workers for the years 2024 and 2025, as the Council faces a shortfall in revenue.
City Treasurer, Ugoshi Orgista proposed that the Council offers salary increase only for 2024, while it tries to rake in much needed revenues through the issuance of demand notices.
She said were the Council to offer its workers a salary increase of 10%, it would cost the Municipality an additional $8.5 Million per month, while a 6.5% offer would require an additional $5.56 Million per month.
At present, the Municipality’s wage bill totals approximately $1.4 Billion, while employment overhead costs add up to just over $226 Million.
Councillors from the People Progressive Party/Civic (PPP/C) argued that the Municipal Workers deserve an increase that is “fair and equitable”. However, the Councillors representing A Partnership for National Unity stated that the issue is more about the source of funds for a sustainable increase than it is about the increase itself.
Chairman of the City’s Finance Committee and APNU Councillor Lelon Saul told the Council that “it would be difficult, if not impossible to pay an increase” under the current circumstances.
He said the Council must improve its revenue collection, particularly for rates and taxes, before an increase can be offered.
In 2024, the Council was hoping to rake in approximately $3.2 Billion in revenue, but it fell short of that target by more than $1.2 Billion.
“Last year we collected 58% of the projected amounted. We need to do better. We have to put systems in place to make sure who are not paying that they pay. The next area of concern is what is considered as ‘other revenues.’ There is a significant decline, as much as 67% if you are to compared last year with 2021,” Councillor Saul said.
He said the City’s revenues must reflect the rapid expansion of the city in a fast growing economy.
Saul told the Council that revenue collection continues to be far below expectation because of poor implementation.
“There is major transformation and change of land use from residential to commercial that should attract higher rates. It is not happening. Why, we must ask ourselves. Those who are supposed to ensure that the information is fed into the system, they are not doing it. And therefore, we are not getting the revenue,” Saul said.
City Mayor Alfred Mentor said the City’s Administration has failed to put forward innovative solutions that could help to improve the city’s revenue base, and collection.
Meanwhile, another APNU Councillor, Troy Garraway, said while the opposition aligned Councillors are not against increasing the salaries of workers, the Municipality must be financially capable of effectively rolling out any increase.
“I am always for persons to be rewarded once they work. I have absolutely no reservation. I think each and every officer in the council deserves a raise in pay but we cannot come here and say to you, we are going to give you a raise in pay when we don’t know where the money is going to come from. Because if we decide on that, and we don’t know where we are going to raise our revenue base from, the middle of this year when council goes cash strap and we can’t pay June salary, it will be the very same officers, and the very same councilors like Don Singh, who are going on the media and bash the APNU/PNC led council,” Councilor Garraway reasoned.
But PPP/C Councilor, Steven Jacobs told the Council that he has heard enough with the excuses and blame game. He said the workers should be paid an increase in their salaries.
“And respectfully councilor Saul, you continue to stand there and talk and no action. Time for action! I myself prepare billboards for this council, let us use! And that is what the councilors should do, and telling the Town Clerk and other administration bring ideas, and then we knock it out, throw it out, and then even the ideas, that we implement, we don’t even check on it. Let’s be fair,” Councilor Jacobs argued.
PPPC Councilor Alfonso De Armas Archibald, in echoing similar sentiments, said the Council must also address the age-old issues surrounding the software that manages the Municipality’s fiscal revenue before imposing more taxes and fees on the residents of the city.
He said the Municipality must not seek “a lazy fix” to the issues confronting it.
In 2024, the City Council received 92% of its market fees, 91% of the container fees and 52% of the revenues generated under Other. However, only 58% of the rates and taxes was collected.
The market fees, the container fees, and other collections totaled approximately $803.2M while rates and taxes accounted for $1.297B.
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