Pay up or face the music

Feb 15, 2010 News

NEW AMSTERDAM, BERBICE – That’s the warning from the Treasurer of the New Amsterdam Municipality, Sharon Anderson, to citizens who continue to fail to pay their taxes.

During last year, the Council, through an attorney, issued legal notices to at least 50 residents and many responded. Within two weeks summons are to be served on those who failed to comply. Those who were not served last year are soon to receive their legal notices.

Mrs Anderson indicated that the Council had expected to collect $127 million in 2009 but only 45 percent of that amount was realised.

This topped the 2008 figure and was a direct result of the legal notices dispatched in a bid to recuperate monies outstanding.

This year, the budgeted figure is $130 million, but as at the end of January 2010, only $5.8 million was collected.

The New Amsterdam Town Council is drowning in red ink and in its defense blames poor tax collection for its failure to deliver many basic services.

Mrs. Anderson listed a number of bugbears including Value Added Tax (VAT). The Council must pay the VAT but is not permitted to collect tax on any service. Since its implementation in Guyana, straight on to July 2009, the New Amsterdam Town Council paid almost $1M in VAT. This takes into account the purchase of road and building materials, janitorial supplies, and electrical and other items.

The valuation of residential property is rather low, she said. For instance, in some prime locations in New Amsterdam the owners pay only $780 per annum and at some of these very locations where there are empty lots the cost is a yearly $584 while others cost $1,952.

In an effort to rectify this situation, the Treasurer is forwarding any plan along with a copy of the transport upon completion of any building to the Valuation Division in Georgetown for a proper evaluation. According to Mrs. Anderson, the government appointed one division in Georgetown that must deal with valuations for all municipalities so the New Amsterdam Town Council does not have a valuation officer.

Based on a suggestion made by Town Clerk, Angellina Collins, it was agreed that a representative from the Valuation Department in Georgetown would visit New Amsterdam shortly and conduct an exercise. During this street to street campaign and armed with plans and transports, on the spot valuations for all properties that were recently erected, extended, renovated and such would be conducted.

The Council is also faced with a shortage of machinery. It is without a backhoe and cannot offer much service in terms of clearing the drainage system and removing overgrown bush to improve the aesthetics of the town.

The New Amsterdam Town Council’s backhoe has been at a mechanic shop since 2006.

Last year, the Town Clerk issued a written request to the Minister of Local Government for a new backhoe. To date, there has been no response.

Another burning issue is the leaning and now collapsing tower of the New Amsterdam Town Hall. Money is needed to renovate the structure but none is available. Last Wednesday, pieces of wood and broken glass fell causing minor injuries to a passer-by and a staff member. The Town Hall was erected in 1868. According to the Treasurer, in 2007, a contractor gave a $5.6M estimate to restore it but a second opinion subsequently revealed that $15 million would be a more realistic figure. Mrs. Anderson noted that a date is to be identified for a representative from the Ministry of Public Works to assist in removing all materials on the tower that could be a threat to life or limb.

Meanwhile, Mrs. Anderson said that the Council receives an annual $10 M government subvention. In her 2008 Budget presentation, she had requested a further $5M increase but no favourable action was taken.

The Treasurer said that residents accuse the council of collecting money but doing nothing. According to her, it’s not only the town that suffers when residents fail to pay up their dues. There are 84 members on staff at the New Amsterdam Town Council and 75 of them are paid below government’s $35,000 minimum wage. Mrs. Anderson indicated that the starting salary for an average Council’s Grade Two Clerk is $27,355.

“If the residents and business owners in New Amsterdam could come together and pay taxes and get proper valuations done we can get more funds for the town. We need help not only in rates and taxes but in every form even machinery. So if the business people with vehicles can help up it would go a far way.”

Last year, the Council introduced the contract agreement to help ease the burden by giving residents the opportunity to pay their taxes in amounts to suit their pockets.