[Photo: FILE]

Levuka Town Council’s total revenue fell by more than 40 percent in 2019, largely because government grants dropped sharply, raising questions about the council’s financial capacity to deliver services.

Special Administrator Nemani Bulivou told the Standing Committee on Social Affairs that the council’s total revenue dropped from $850,049 in 2018 to $494,745 in 2019.

Bulivou says government grants fell by 61.21 percent, from $545,651 in 2018 to $211,626 in 2019, affecting the council’s spending.

He says the council collected $140,043 in rates in 2019, down from $148,596 in 2018.

“In 2019, we got $92,294. It was up from $53,003 in 2018. All other income combined was down in 2019 at $50,782, compared to $102,799 in 2018. Grants are a key funding source for us. In 2018, we received $545,651 in government grants. That was drastically reduced in 2019 to $211,626. We calculated that this was a 61.21 percent cut, leaving us with only 38.78 percent of the previous year’s grant. The total revenue for 2019 was $494,745, compared to $850,049 in 2018.”

Standing Committee member Praveen Kumar questioned the funding available for town beautification projects.

“So, did the Levuka Carnival Committee make any contribution, or were any funds raised or surplus funds given to the town council for the beautification project?”

In response, Levuka Town Council Special Administrator Chair Ben Naidu says the profits from the carnival were previously distributed to the villages from which the carnival queens came.

“The model our predecessors used was to distribute whatever profits were made from the carnival back to the villages the queens came from. The queens who participated in the carnival came from various villages around Ovalau, and it can be quite difficult to get these women to come and participate.”

The figures highlight the financial challenges Levuka Town Council faced in 2019, as reduced government grants led to a sharp drop in total revenue.