The City of Windhoek has approved a budget of more than three billion dollars for the next three years.
Of this more than 430 million dollars are for capital expenditure, with the remaining amount going to operations.
The city was unable to present a balanced budget and will have to find funding for a deficit of more than 373 million dollars.
Making the announcement at last night's monthly council meeting, Chairperson of the Management of Commitee of the City Kafula said given the challenges the city faced, it had outlined three priority areas for its planned expenditure.
These are to provide municipal services, build houses for the low income categories and maintain the existing infrastructures.
Meanwhile, Windhoek residents must brace themselves for increases on basic tariffs.
The water basic tariffs will be increased with 19 percent while water consumption will increase by nine percent.
Sewerage tariffs will increase by ten percent, property tax by 25 percent, household refuse removal 10 percent whilst the solid waste management tariffs will also go up with 10 percent.
Pending approval from the Electricity Control Board the city has proposed a 15 percent increase in electricity tariffs.
This means that an average low income household will have to pay an additional 75 dollars, while an average middle income household will have to part with 227 dollars.
For the average high income household, the current financial year of the City of Windhoek will translate into extra spending on municipal rates and taxes of 537 dollars.
Chairperson of the Management Commitee of the City of Windhoek Agnes Kafula acknowledged that the increments might not be welcomed by all, but that the city was forced to make adjustments to meet the needs of the residents.