Financial Terms

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Parochial Revenue Fund
Funds raised from the proceeds of Property Tax receipts and Motor Vehicle Licenses. These funds are allocated specifically for public cleansing and garbage disposal, street lighting, fire services, minor water supply, parks and beautification.

Recently, there was a legislative amendment allowing these funds to go to ‘any other service or programmes authorized by the Minister after consultation with the relevant Parish’.

Receipts from the Motor Vehicle Licenses also go towards Road Maintenance.
1. Property Tax receipts
Ninety (90) percent of the Property Tax receipts are received by each Council. The remaining 10% is placed in an equalization fund (see below).

2. Motor Vehicle License receipts
One third (33 1/3%) of the monies collected go to the Ministry of Finance for general revenue, while the rest is remitted to the Ministry of Local Government. This two thirds (66 2/3%) is then sent out to all the Parish Councils based on the number of kilometers of roads in each parish.
This plan is an attempt to fairly distribute funds to each parish, as some may have many roads but fewer registered drivers. St. James in particular collects more funds from licenses than we are able to keep because we are a small parish with comparatively fewer roads. In addition, many drivers, including those from surrounding parishes, are registered in Montego Bay. Thus, some of our monies are redistributed to other larger, less populated parishes.

Twenty (20) percent of the two thirds is reserved for the Parish Infrastructure Development Programme. This is an international loan programme whose funds are spent on infrastructure, and which requires a financial contribution from the national government.
 
Equalization Fund
Purpose: to provide budgetary (capital) support to the Parish Councils. Comprised of 10% of the property tax receipts, funds are distributed according to parish needs.
Government Grants

The Central Government provides General Assistance Grants (GAGs) and Specific Grants to cover various Council expenses.
1. General Assistance Grants
These funds go towards services for retiring benefits, executive direction & administration, political directorate, and roads & technical services.
2. Specific Grants
These are grants which cover the exact amount of services costs. Poor Relief (indoor and outdoor) and Minor Water Supplies fall under this category.
 
Self-financing Services
These are services which are expected to finance themselves and to provide general revenue for the Council. All such services are contained within the Commercial Services Unit. These are: markets, public cemeteries, burial on own premises and transportation centre / car parks.

Recurrent Budget
The operations budget is revenue and expenditure for the coming year, covering administration costs (salaries).

Capital Budget
The capital budget is the long-range plan of all capital expenditures during the following five years, including the following:

  • acquisition of land
  • construction of buildings
  • construction of roads & minor water supplies
  • purchase of major equipment

The capital budget shows how the expenditures are to be financed and any resulting operations costs/savings expected.