KUALA LUMPUR, Dec 24 — With taxpayers demanding to see improved services from a controversial property valuation hike here, Mayor Datuk Seri Ahmad Phesal Talib announced today the bulk of the RM200 million Kuala Lumpur City Hall (DBKL) is set to raise from the programme will be spent on parks and playgrounds.

He also revealed that DBKL will operate on a deficit budget for a third year in a row, with a short fall of RM292.7 million despite an estimated income of RM2.13 billion next year.

“As the local authority, we manage all, from the cleanliness, lighting, roads, river maintenance, drainage, and all these need our attention.

“We have public parks and I will ensure these parks are manifestation of our contribution to the public, so we try to increase maintenance efforts to the public parks because the parks are communal,” Ahmad Phesal said when revealing the DBKL budget today.

He said focus will begin with upgrades at three parks ― Taman Titiwangsa, Taman Botani and Taman Tasik Pemaisuri ― and maintenance work at Taman Metropolitan Batu, Taman Metropolitan Kepong, and Taman Pudu Ulu.

Phesal also said DBKL has begun appointing contractors to set up and maintain playgrounds in the housing area.

In November, DBKL issued notices to property owners in the city, informing them of increased of up to 300 per cent in their property valuation that outraged residents and property owners.

Following widespread complaints, the Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor last week decided on a reduction of between one and four percentage points in assessment rates from January 1.

Today, Phesal said DBKL had initially estimated to generate an additional RM400 million from increased valuation and rates, but the announced reduction meant DBKL’s forecast revenue will only go up by 28 per cent instead of the initial 36 per cent.

“In addition to that, other source of income include payments of building control and planning, RM272.5 million, rentals and service charge, RM81.7 million and licence fees, RM56.2 million.

“Meanwhile, DBKL is expected to receive aid from the federal government in the form of grants amounting to RM135.1 million, which include road maintenance grant of RM33 million, special grant of RM4 million and outright grant amounting to RM98.1 million,” he said.

The mayor added that 54 per cent of the RM2.79 billion approved budget will be spent on management, while the rest will be used for development.

The federal government will also allocate RM475 million under the 10 Malaysia Plan, the National Key Results Area (NKRA) and the Greater KL/Klang Valley project, while Petronas will provide RM7.5 million to help offset the development budget.

“Taking all the above into account, DBKL is expected to dip into its reserves of RM292.7 million to pay for development projects,” he said.