The Luanshya Municipal Council has rejected the request from Luanshya Copper Mines (LCM) PLC to cancel payments of rates on properties owned by the mines.
At a council Meeting held to present the budget, the council resolved to reject an application by Luanshya Copper Mines (LCM) PLC for remission on payments of property rates for the year 2022.
The Council rejected LCM application on grounds that the mining firm has already been enjoying relief through remission for the past two consecutive years (2020 and 2021) amounting to K 5,388,485-96 per year bringing the total of revenue by the Council to K10,776,973:92.
The full amount payable by LCM to Council is K25, 888,486:96 annually.
However, the Special Council Meeting resolved to consider granting LCM the remission to the applicant for the year 2023 if the company applies for it.
Meanwhile, the Council has proposed to spend K120, 534,708:00 in the New Year 2022 pending approval by the Ministry of Local Government and Rural Development.
The Luanshya Municipal Council has adopted a K120, 534,708:00 budget for 2022, which has been sent to the Ministry of Local Government and Rural Development for scrutiny and approval.
A special council meeting chaired by Mayor Charles Mulenga adopted the Council budget after the councilors scrutinized and debated the proposed revenue expenditure and capital estimates presented to the meeting by management.
According to Council Public Relations Manager Gideon Thole, this year’s K120, 534,708:00 Luanshya Municipal Council budget represents an increase of 34 percent compared with the 2021 budget which stood at K79,885,053:62.
Mr. Thole said the raise in the budget has been attributed to the increased allocation on the Constituency Development Fund (CDF), which was previously K1, 600,000-0 and now rose to K 25,700,000-00 per constituency representing an increase by 1005 percent.
‘The 2022 budget which has been prepared under the newly introduced Output Based format which is different from the Activity Based Budgeting which was used in the process to come up with the 2021 Luanshya Municipal Council budget. A huge chunk of the budget has been diverted to capital projects and service delivery as seen from the Constituency Development Fund (CDF), which will gobble K51, 400,000:00, economic and business development activities will this year cost the Council K 10,738,297:00, housing and community services allocation is K5, 883,708-00 while K5, 631,025: 00 will be used on public health and environment services,” Mr. Thole stated.
“The activities which will be funded by the budge also include the implementation of the District Integrated Development Fund at a cost of K2,932,106-00, local government service delivery related activities at a cost of K2,614,481-00.Service delivery activities budgeted for by the Council includes a K8, 218,580 :00 allocation to Public Order Safety, Recreation Culture and Religion at a cost of K1.357, 681 : 00, Education and Skills Development K472, 532 :00,” he stated.
The non-capital projects such as management support system and resource mobilization management are expected to cost the Luanshya Municipal Council K28, 032,395:00 and 3,253,903:00 respectively.
Mr. Thole further confirmed that Mayor Mulenga’s ruling to suspend the purchase of two utility vehicles, one of them for his office in preference to paying the retirees terminal benefits, has been adopted by the council.
“The special council meeting following a ruling by Mayor Mulenga resolved to suspend the purchase of two utility vehicles to divert the cash meant to purchase the mayoral vehicle to increase the allocation for the payments of the retirees’ terminal benefits.”
Luanshya Town Clerk Timothy Mambalakata assured the Council Meeting that management was set to efficiently execute the payment of retirees’ terminal benefits once the money was available.
Mr. Thole added:”The 2022 Luanshya Municipal Council budget which was prepared in line with the draft 8th National Development Plan and in accordance with the provisions of the Local Government Act No, 2 of 2019 and the National Planning and Budget Act No.1 of 2020 will be effected once it is approved the Ministry of Local Government and Rural Development.”