-amid revenue shortfall
The Georgetown City Council engaged in intense debate on Monday over whether to implement salary increases for its more than 500 employees in 2024 and 2025, as the municipality grapples with a significant revenue shortfall.
City Treasurer, Ugoshi Orgista, proposed limiting salary increases to 2024 while focusing on boosting revenue through demand notices. She outlined the financial implications of potential raises, noting that a 10% increase would cost the municipality an additional $8.5 million monthly, while a 6.5% increase would require $5.56 million more each month. The municipality’s current wage bill stands at approximately $1.4 billion, with employment overhead costs exceeding $226 million.
Councillors from the People’s Progressive Party/Civic (PPP/C) supported a “fair and equitable” salary increase for municipal workers. However, representatives from A Partnership for National Unity (APNU) emphasised the need for sustainable funding sources before committing to any raise.
“It would be difficult, if not impossible, to pay an increase under the current circumstances,” said Lelon Saul, APNU Councillor and Chairman of the Finance Committee. He called for improved revenue collection, particularly for rates and taxes.
In 2024, the Council had projected $3.2 billion in revenue but fell short by over $1.2 billion, collecting just 58% of the expected amount. Saul highlighted inefficiencies in revenue collection, noting that “other revenues” declined by 67% compared to 2021.
“There’s major transformation and change of land use from residential to commercial that should attract higher rates, but it’s not happening,” Saul said, pointing to administrative failures in updating the system to reflect such changes.
City Mayor Alfred Mentore criticised the administration for a lack of innovative solutions to enhance revenue collection. APNU Councillor Troy Garraway echoed these concerns, arguing that any salary increase must be financially sustainable.
“I support rewarding workers, but we cannot commit to a raise without knowing how to fund it. If we proceed without a plan, we risk being unable to pay salaries later in the year,” Garraway warned.
Meanwhile, PPP/C Councillor Steven Jacobs dismissed the ongoing blame game and called for immediate action to approve salary increases. “Enough talk. Let’s be fair to the workers,” Jacobs urged.
And Councillor Alfonso De Armas Archibald, also of the PPP/C, stressed the need to address systemic issues, including outdated fiscal management software, before imposing additional taxes or fees on residents. He cautioned against what he termed “lazy fixes” to the city’s financial challenges.
In 2024, the City Council collected 92% of market fees, 91% of container fees, and 52% of revenues under “other” categories. Rates and taxes, however, lagged at 58%, contributing $1.297 billion, while the other collections totalled approximately $803.2 million. (Mia Anthony)