City Council approves the budget of 2010

Published December 16th, 2009 - 11:26 GMT

During a session headed by Mayor of Amman, Omar Al Maani, the City Council approved the budget of 2010, which amounts to JD 408,218.000 and an expected deficit of JD 47,928,000.

Total revenues and funding resources of 2010 are estimated at JD360,290,000, 2,053% more than 2009, namely, JD353,000,000 after revision.

The 2010 budget project included current and capital revenues and expenditures, in addition to the personnel formations appendix; therefore, revenues were classified into three categories, self generated revenues, governmental support (joint revenues with the government), and funding resources (grants, loans, and bonds).

Self generated revenues reached 71,544% of the expected revenues for 2010, with an estimated amount of JD 257,767,000, an increase of JD 15,412,000 upon the revision of self generated revenues in the budget of 2009 that amounted to JD242,355,000, and the positive deviation reached 6,359%. 

The project classified the self generated revenues according to the authorized collecting party, the government revenues, and they represent 7,759% of the total revenues, noting that fuels' revenues of 2010 are estimated to be 20 millions which exceed those of 2009, with two millions and a half.

Self generated revenues collected by Greater Amman Municipality (GAM), which amount to 92,241% of the total revenues are distributed as follows; JD 50 million from buildings and lands taxes, JD 20,587,000 from vocational licenses and announcements, JD 43,600,000 from due collections, JD 39,730,000 from GAM acquisition revenues, JD 650,000 from parking lots' fees, leases and auctions, 18 million from construction licenses fees, JD15,400,000 from the fees on houses' wastes, 11,300,000 other revenues, 30 million from traffic violations, JD3,500,000 public transportation revenues, and finally 5,000,000 as government contribution to tunnels and bridges construction on the roads.

As for expenditures, the budget of 2010 adopted the indicators of the financial performance which shows the revenues rates verses the current and capital expenditures and expenses rates upon the actual data of the previous years, taking into consideration the external changes such as rise of prices, and growth rates.

The 2010 budget estimated the current expenditures to be 125,333,000, which represents 30,702% of the whole budget, and they include salaries and bonuses that reached 85,482,000, bearing in mind the normal increase in the number of employees and workers and the required promotions of 2010, as well as JD7,500,000 for operational expenses, and transformative expenditures JD32,350,000. 

Capital expenditures and funding resources reached JD282,886.000, including developmental expenses and loans' repayments, acquisition compensation expenses (acquisition funded by the governmental support), and the capital expenditures (covered by funding resources and bonds).

Al Maani ascertained the safe financial status of GAM, as the financial flows are continuously studied. He indicated that the lands which GAM acquired in Amman for potential projects are real investment in terms of fixed assets.

He also pointed out that GAM's budget focuses on institutional projects in the areas where its teams are working at the present time, such as the crossroads of Al Shmeisani and the huge crossroad in Marj Al Hamam. 

The Mayor declared that a new system consisting of 700 sunshades for the waiting areas is to be installed within a year and a half, of which 137 are to be installed at the end of February 2010, in addition to 30 new buses to be launched to cover different areas of the Capital.

According to the budget, the deficit shall be covered from the increase of GAM's revenues from lands and buildings' taxes, other dues, construction fees, and accumulated announcements and vocational licenses levied on the citizens by taking several procedures. Examples of these procedures are: following up on the execution of the agreement between the Ministry of Finance and GAM to collect the dues through legal affairs, preparing media plans and activating the legal follow-up section, committing to the installments of fees and taxes, controlling expenditures, especially those of commercial nature, organizing tenders and bids, and providing citizens with incentives to repay their financial commitments.

The council decided to corroborate GAM's support to Queen Rania Award for Excellence in Education to support and motivate the teachers with JD100,000, after being re-estimated in the budget with JD50,000. The council also approved the allocation of JD 10,000 for GAM's Haj delegation to buy the sacrifices.

The City Council defined the rules and regulations of taxi offices merge. As for the vocational licensing of citizens working from home, it was deferred to the coming session next Monday, in response to the members' request

GAM aims from taxi offices merge to organize taxis within GAM's boundaries, develop transportation sector from an operational perspective, and to avoid the violations of some operators.   

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