Last updated on 31 August 2026, this report outlines a major policy shift that has turned around the long-troubled finances of Guyana’s Georgetown City Council. For decades, the local government body struggled with low compliance on unpaid property rates and taxes, driven by a punitive daily compound interest system that left many residents owing more than the total value of their properties. That dynamic shifted dramatically earlier this year, after council leaders implemented a 2021 High Court ruling retroactively to 1997, replacing the previous compound interest model with a far more manageable simple interest structure for all outstanding debts.
Speaking to Demerara Waves Online News, Lelon Saul, chair of the Georgetown City Council’s finance committee, explained that the 2021 High Court judgment had already mandated a switch to simple interest going forward from the ruling date, but did not require the change to apply retroactively to older outstanding debts. It was not until early July 2026 that the council voted to extend the simple interest policy back to 1997, excluding only those residents who had already fully settled their compound-interest calculated debts to avoid administrative and financial disruption.
The policy change has delivered immediate, measurable benefits for both residents and the city’s bottom line. Saul noted that the reduced interest burden has brought substantial relief to hundreds of delinquent ratepayers, incentivizing thousands to settle long-outstanding debts that they had previously been unable to afford. The result has been a marked jump in municipal revenue that has eliminated the council’s long-standing cash flow crisis.
“In typical years, we spend July and August tip-toeing around our budget just to meet payroll for city staff,” Saul explained. “This year, we paid our workers on the exact same schedule as central government employees, and we even had enough surplus to complete a GY$4 million infrastructure improvement project in Albouystown. One of our top near-term priorities now is finally finishing the new city administration building, a project that has sat partially constructed for more than 15 years, funded entirely with city funds.”
Preliminary revenue data confirms the sharp upward trend. From January to July 2025, the council collected a total of GY$892.4 million in general revenue; that figure rose to GY$921.1 million over the same period in 2026. The increase is even more pronounced in monthly rates and taxes collections: July 2024 brought in GY$87 million, July 2025 fell to GY$54 million, and July 2026 saw collections surge to GY$116.6 million. Saul added that collections for August 2026 are already outpacing historical averages for the month.
Georgetown Mayor Alfred Mentore first announced the policy shift and its early results during the launch of events celebrating the city’s 184th anniversary on 21 August 2026. Mentore emphasized that the interest restructuring was designed to deliver meaningful relief to city residents while addressing the council’s persistent revenue shortfalls. For residents who continue to hold substantial unpaid debts after the restructuring, the council plans to pursue legal action, but Mentore stressed that the body prefers negotiated solutions over seizing and selling properties.
“Our goal is not to take homes from residents,” Mentore said. “If we do have to proceed to court, we will push for arrangements that allow property owners to take out mortgages to meet their obligations rather than forcing a sale.”
The mayor also called on Guyana’s central government to uphold its commitment to funding local government bodies, arguing that central authorities often criticize local councils for poor performance without providing the necessary resources to deliver core services. “Had we the requisite resources, we would be able to do a lot more for our residents,” he noted.
Even with the current revenue windfall, finance committee chair Saul reiterated that long-term fiscal stability for the city will require additional action. Current property rate assessments are outdated and far below market levels, he explained, meaning the city cannot generate enough consistent revenue to meet all its service obligations. In lieu of updating assessments, Saul said central government could provide ongoing operating subsidies to support the city’s work.