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Belize City Council in dire straits – GOB refuses to help

PoliticsBelize City Council in dire straits – GOB refuses to help

According to the BCC, they are saddled with four sanitation/waste control contracts that are costing them more than double what they expect to collect this week, and they just can?t afford to pay.


It is estimated that the jobs of 400 sanitation workers are on the line due to the Council?s financial situation. The new Council took office less than five months ago, and for the fourth time since they took reign at City Hall, they have, purportedly, not been able to pay for sanitation services, estimated at $620,500 a month.


Central Government gives the impression that BCC officials have turned to Central Government for help, but Trujeque said that they are simply asking Central Government to give City residents their due:


?What the Council is asking for is what is rightfully the City?s. When the Government can use Social Security and DFC money to give its cronies?millions of dollars to two or three party hacks? but cannot give $3 M to some 80,000 residents, something has to be grossly wrong about politics in this country,? Trujeque commented.


The biggest contention is over the head tax billed to cruise tourists. The BCC wants US$2 out of the monies paid by each tourist. Assuming about 1 million visits a year, this could mean BZ$300,000 more in revenues a month.


While Central Government has claimed that the Belize Tourism Board (BTB) is the body with the legal authority to decide if the BCC should get the requested portion of the head tax, the BTB, in a statement to the press today, said that it is only the Central Government that has the legal right to do so. It is an issue that is unresolved as we go to press tonight.


But even the proposed head tax cut, the Council claims, won?t make its financial position tenable. BCC is also asking for a portion of the environmental tax. It argues that GOB collects the tax for plastic waste management and some should, rightfully, go to the City.


Thirdly, the BCC is asking GOB for a portion of the port fees.


The Council claims GOB?s subvention is $123,500 a month, but GOB takes out $25,900 for a Belize Bank loan and $42,700 for a Scotia Bank overdraft facility, leaving the Council with $54,900 monthly out of the subvention.


We have not been able to get a read of how far the Council is in the red as we speak, but the Council indicates that compared to the same period last year, the BCC?s financial position is significantly worse.


Government announced Wednesday, August 9, that Prime Minister Hon. Said Musa, and Minister of Health, Transport, Communications and Local Government, Hon. Jose Coye, had met with Belize City Mayor, Zenaida Moya; Deputy Mayor, Wayne Usher; and Mr. Anthony Castillo, the Belize City Council?s Internal Auditor, to discuss the Council?s financial situation following a request from the BCC.


What Central Government is telling the BCC to do is to step up and collect the $7.7 million that is in arrears.


Coye urged Mayor Moya and the Belize City Council to make a stronger and more sustained effort to improve the Council?s revenue-collection methods and bolster its financial position, a statement from Government said. ?Prime Minister Said Musa said Central Government is willing to look at what is presented by the Belize City Council and cooperate as much as possible but is insistent that the Belize City Council seek to collect its outstanding property taxes.?


GOB also said that it ??is prepared to consider restructuring the Belize City Council?s debts in an effort to reduce its current debt service burden by re-scheduling payments over a longer, three-year period.?


Central Government has also called on the BCC to open its books and present financial information to the Ministry of Finance ?for further discussion and for the development of a plan to put the Council on a more sustainable financial basis.?


It is noteworthy that, like the City Council, GOB has also been experiencing financial hardships. It announced last week that it is also unable to meet payment to foreign creditors.


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