The Sunday News
Sharon Chimenya, Sunday News Correspondent
MASVINGO City Council has proposed to raise rates and service charges to meet its proposed $4,1 billion budget for the year 2021.
Presenting the city’s budget proposals during a residents’ consultation meeting in Ward 6 which covers Target Kopje, Hillside, Mucheke F and part of Majange last week, the local authority’s deputy finance director, Mr Danister Jori said the council projected a $4,1 billion budget and an annual inflation of 150 percent.
“For the current year the annual budget for revenue was $522 799 343, 07 with the actual amount billed being $58 522 049,25 and we are forecasting that by the end of the year we would have used $78 029 399. For the upcoming year our total projected revenue is $4,1 billion and total projected expenditure is $4,1 billion. The major revenue sources are rates, service charges, licences, rentals, land sales and external loans and grants. Major expenditures are general expenses, maintenance, employment costs and capital expenditure.”
According to the budget estimate, council has proposed that for the service charges for the high density (water 0-5 m3) will go up from $135 to $540. For sewerage charges, council has proposed the rates to go up to $720 from $134, refuse $712 from $118.
Rates for low-density areas, (Rhodene, North leigh, Zimre Park) are expected to go up to $1 350 from around $90.
Council has, however, introduced two sections to the service charges, that of fire and emergency response levy and the lighting levy.
“On fire and rescue services council realises that this disaster and emergency response section has become significantly become under capacitated in terms of equipment and resources. In order to improve the efficiency of this section in responding to emergencies such as natural disasters, fire and road traffic accidents, we propose to introduce a dedicated funding line with an initial proposal of $90 per month per account,” he said.
“On public lighting there is an agreement that placed an obligation on Zesa to maintain the city’s public lighting infrastructure. Zesa has not been forthcoming in honouring this obligation and the agreement has now become a subject of dispute. While a solution is being sought, council believes that measures have to be taken to ensure that the security of our residents does not continue to be compromised through lack of functional public lighting systems. In this regard, we propose to introduce a new billing item of ‘public lighting’ with effect from January 2021 at a rate of $90.”
Mr Jori said that the 2020 financial year performed below expectation due to the high inflation rates and exchange rate volatility, which was one of the major drivers of inflation.
The debtors book according to the half year budget stood at $131,2 million rising from an opening balance of $50,4 million with the residents debts constituting 45 percent of the debt and institutional debtors, contributing 43 percent. The local authority owed its creditors a total of $18,3 million. While payment plans have been made with various creditors, council finds itself defaulting as a result of cash flow challenges.
The major creditors are; Zetdc, Zimra, Pay As You Earn (workers tax), Local Authority Pensions Fund (Lapf) and workers’ salaries.
