Expenditure Budget
Total projected expenses for 2010 would be K195.14 million. Summary of our expenditure budget for 2010 is:

• A total of K35 million of our total budget is allocated towards staff entitlements including salaries, leave fares, accommodation rental and Home Ownership Scheme. This allocation is based on the assumption that the new structure will be in place by Q2 of the year. Should this not happen, the personnel cost will be reviewed in the revision in mid 2010.
• K63.78 million is allocated towards capital and infrastructure projects, such as completion of the approved road reseal and for rehabilitation of around 20 kms of sub-urban roads, mini sports parks, markets and public toilets.
• K32.28 million is allocated for the Commission’s recurring program based operational items such as garbage collection, parks and garden beautification, street lights and other operational expenses of social and welfare projects.
• A total of K18.60 million is allocated towards grants to institutions such as Central Province, Motu Koitabu Assembly, NGO’s, Fire Service, Health Services, Suburban Sports Council and Botanical Gardens.
• K22.41 million is allocated for admin related expenses such as utilities, rentals, office expenses, vehicles, furniture and equipments, Project Hetura and consultancy etc.
• The reminder of the expenses goes to assorted items.
  

Notable cost centre allocations are as follows:

Top Management

11% of total budget or K21.88 million goes to the top management and centrally controlled non-program activities. Major recipients of this slice would be:

• Central Province – K7.45 million being 5% of GST Distribution based on the ongoing arrangement. There are numerous technical amendments to NCDC Act to remove the technical defects to pay 10% of GST to CPG. Nevertheless, the essence and spirit of the new Inter-Government Relations (Functions & Funding) Act literally nullified the revenue share amongst various tiers of the government agencies.
  
  
• An allocation of K3 million is provided for the design and our equity on the proposed new city hall. The Commission agreed to extend the lease of the Lakatoi Haus for another term subject to termination by parties after 2 years. The city hall construction will be funded through external loans and will be serviced through rental savings.
  
  
• Home ownership scheme and Fire service receive the same K1.5 million and K0.72 million respectively.
  
  
• An allocation of K1.5 million is made for all publicity activities.
  
  
• All other allocations remain same as that of 2009.

Engineering

About 34.57% of the total budget or K67.47 million goes to the Engineering Division. Major activities of Engineering in 2010 would be;

• Capital works allocation includes: Road resealing program K28 million, Drainage construction K4.3 million, Foot paths, walkway, ramps K1 million, Bus bays K1 million.
  
  
• The Commission will be also assisting Central province to reseal the Kuriva Road at K0.5 million.
  
  
• Road needs assessment study and survey on existing and new roads get K2.5 million.
  
  
• Engineering works will get a boost in 2010 – K7 million for pothole patching and K3 million for grading settlement roads.
  
  
• Streetlights and traffic lights including line marking receive K6.3 million including power consumption and a new pilot project for solar powered street markers is allocated with K1.0 million.
  
  
• K1.7 million is allocated to complete the renovation and fencing of the Tarport office. Tarport office has been subject of vandalism in the recent past due to the deteriorate status of the fencing.
  
  
• While the Novated lease will be introduced for the staff vehicle entitlements in 2010, an allocation of K1.7 million is allocated for the vehicle replacement program.
  
  

Community & Social Services

About 24% of the total budget or K46.05 million goes to Community & Social Services Division. Major recipients of this slice would be:

• K10.25 million goes to Education – of which K5 million is for building new classrooms, K3 million for counterpart funding for a new school in 9 mile area, K1 million for learning facility in schools and K0.7 million for vocational scholarships.
  
  
• NCDC would continue the supply of water to schools as per the revised ration arrangement (K0.3 million).
  
  
• Parks and Garden outsourcing scope is finalized for K7.7 million in 2010 – the scope will be cleaning and beautification of city; Drainage cleaning, CAA beautification, PAU joint park, completion of DukDuk dance and butterfly structures, Kennedy, Gotwit and Sir john Guise Dr and Cameron beautification and beach development facilities.
  
  
•  K0.5 million is provided for additional equipments to the children play areas or extending the concept to new parks.
  
  
• Markets constructions receive a funding of K2 million to complete the Waigani and for few new small markets.
  
  
• Waste management operations receive K5.8 million.
  
  
• Allocation to MKC will be K7.5 million (staff cost K0.5 million, Hanuabada health clinic K1 million respectively, Hiri Moale Festival K0.5 million, Walkways K0.5 million and MKA Grants K5 million.

Centrally Controlled Programs

The Commission has allocated K18.8 million to implement tied programs: Allocations to such programs include: BuaiBan operation K0.9 million; Provision of Water K0.5 million; Grants to Suburban Sports council K2 million, Mini Sports park K2 million, Health Clinics K3 million, and other assorted program as are detailed in the Budget document on page 56.


Regulatory Services
4.4% of total budget or K8.65 million goes to Regulatory division that would focus on strengthening regulated functions and enforcement of Physical Planning, Building and Licensing Acts.

Regulatory Services would concentrate on capacity building, one-stop-shop concept, drawing local area plans (K1.90 million), Urbanization and resettlement services K900,000 and significant allocation is made for enforcement of laws at K1 million.

An allocation of K0.5 million is made for the Hetura Project basically to strengthen the IT capabilities of the organization.+

Finance & Admin

About 13.7% of the total budget or K26.79 million goes to Finance & Admin Support Divisions to meet the centralized costs. Major recipients of this slice would be:

• Botanical Garden is allocated with K1.5 million.
  
  
• Allocation to Security Services K2.2 million, Leave fares of all the staff  gets K1.7 million, POSF contributions K1 million, retrenchments K0.5 million and staff training will get K0.5 million.
  
  
• Allocations for audit fees – K300,000; a purchase flow software (e-Workflow) gets K500,000  and TARMIS development for the GIS and PPS is allocated with K350,000.
  
  
• Central admin services receive a total of K7.9 million to meet the cost of inter alia; utilities (K2.34 million), rentals (K4.6 million), insurance & workers compensation (K0.11 million) and property maintenance (K1.5 million).
  
  

Notable activities that did not receive funding but in planning stage include the CCTV surveillance in the city, management of buses that are donated by BCC. The Commission is negotiating with the businesses either to meet these costs or agree to have a transport of safe city levy to be inbuilt in to the land tax rate.


With the restrictions in revenue, we tried to cover as much as possible; nevertheless, we are yet to provide significant allocations to the human development areas such as education and awareness building and enforcements.