Money needed for capital projects
Council is looking for approval to use an expected saving to fund a number of capital over-expenditures.
07 July 2019 | Government
Although provision was made for the installation of one traffic light this year at a cost of N$750 000, no traffic counts were conducted. The budgeted amount was revised to N$105, 900 and resulted in a saving of N$644, 100.
Unforeseen events and increased expenditures since the approval of the 2018/2019 capital budget however, resulted in the need for a redeployment of capital funds on a number of affected votes.
An amount of N$4 761 605 was initially budgeted for six votes in question with year-to-date expenditure amounting to N$5 147 858. Revised budget costs totalled N$5 405 705, resulting in a shortfall of N$644 100.
The N$10 000 budget allocated for the acquisition of power tools had a shortfall of N$2 000 due to the acquisition of three bench grinders and a previous commitment that still have to be reversed.
The replacement of a multipurpose joinery machine budgeted at N$115 000 had a shortfall of N$10 000. The quotations received to acquire the much-needed piece of equipment indicated the shortfall.
The N$2 721705 budgeted for the replacement of four sand removal tipper trucks exceeded the budget and resulted in a shortfall of N$150 000.
A budgeted N$1 164 900 for the replacement of a crane truck was exceeded by N$187 000, while N$500 000 budgeted for the rebuild of gravel roads was exceeded by N$220 000 as the tarring programme for 2018/2019 was not approved and more funds had to be spent to keep gravel roads up to standard.