News / Local
BCC proposes $156 million budget for 2014
29 Oct 2013 at 18:56hrs | Views
THE Bulawayo City Council yesterday proposed a $156 million budget for 2014 with service charges for residents remaining unchanged up to next year.
The budget proposal was brought down by $13 million from this year's $169 million.
In a presentation at a poorly attended stakeholders' budget consultative meeting at the Large City Hall, council's director of finance Mr Kimpton Ndimande said council resolved to shrink the budget after considering the prevailing negative economic environment.
He, however, said the proposed $156 million would not make much impact as it provides little room for capital expenditure such as housing, roads and other infrastructure development projects.
"We have conducted consultations and our proposed total budget for 2014 is $156 million. A total of $113 million is the revenue budget and $42 million is for capital expenditure.
"We will not increase any charges but we have shrunk our budget from this year's $169 million because of certain concessions we made in the course of the year," said Mr Ndimande.
"This was in consideration of several factors such as lack of sound business in the city, vulnerable groups, the prevailing liquidity crunch, high unemployment and lack of funding from Government."
Mr Ndimande said during recent consultations held in the city's 29 wards, residents identified improved water and sewerage, health, housing, road development, education and social services as priorities.
He said the bulk of council revenue was expected to come from water and sewerage charges but noted that local authorities have been given a directive to ring fence these services.
"This means we will starve other services such as education and health. As we speak we have nothing to dispense in our clinics and the Government has not paid us anything towards the free maternity services we give," said Mr Ndimande.
"Out of $113 million, $63 million will cover staff costs as you are aware that council is a labour intensive entity. This is not a hopeful budget because of lack of funding and we are concerned as council."
Mr Ndimande said this year the budget failed to achieve set targets as council was already reeling under a deficit of $14,3 million.
He said out of a targeted $82million annual expenditure only $43million has been spent with two months before year end.
Mr Ndimande said $711 000 has been collected from the Insiza pipeline duplication levy compared to the actual target of $1.4 million.
"Debtors owe council $60 million after the writing off of $49 million debts to residents compared to $78 million we owe different creditors. This means the city is technically insolvent and without external help in financing, the citizenry should run the city.
"Unless we do that the city would not expand and apparently the feeling we get is that people just want a maintenance budget and even that one is not enough. The little facilities we have are run down and some are being vandalised."
Mr Ndimande said council was operating with a skeletal staff of 3 561 instead of a full complement of 5 070 workers but was barred from recruiting.
He also said since the writing off of debts council's revenue collection has dropped from about $6 million per month to $3 million adding that loyal ratepayers were also developing cold feet.
The handful of participants at the meetings urged council to tighten its billing system and come up with strategies for attracting investment into the city to boost the local economy.
Others complained that the proposed $63 million for staff expenses was too much for a city that is struggling to meet service delivery expectations.
One of the participants from the floor said Bulawayo residents should take full responsibility in developing the city instead of sitting back and point fingers at the council.
Academic Mr Qhubani Moyo said stakeholders would have to shoulder the blame for lack of development in the city as they failed to turn up and make their contributions.
The council's senior public relations officer, Mrs Nesisa Mpofu, said water in the city's supply dams was dwindling fast and urged residents to conserve water.
Invited stakeholders who included civil society, political parties, informal traders, transport operators, residents, industry and commerce did not turn up for the meeting, which was supposed to start at 9am.
Newly elected MDC-T councillors also did not attend the meeting.
Senior council staff had to wait for about 40 minutes until they resolved to proceed with the meeting, which was attended by journalists and a handful of people, mainly students from the National University of Science and Technology (Nust).
The proposed budget would be tabled before the joint finance and general purposes committee for input before presentation at a full council meeting.
If there are no objectives the budget would be adopted and sent to Government for approval before 15 December.
The budget proposal was brought down by $13 million from this year's $169 million.
In a presentation at a poorly attended stakeholders' budget consultative meeting at the Large City Hall, council's director of finance Mr Kimpton Ndimande said council resolved to shrink the budget after considering the prevailing negative economic environment.
He, however, said the proposed $156 million would not make much impact as it provides little room for capital expenditure such as housing, roads and other infrastructure development projects.
"We have conducted consultations and our proposed total budget for 2014 is $156 million. A total of $113 million is the revenue budget and $42 million is for capital expenditure.
"We will not increase any charges but we have shrunk our budget from this year's $169 million because of certain concessions we made in the course of the year," said Mr Ndimande.
"This was in consideration of several factors such as lack of sound business in the city, vulnerable groups, the prevailing liquidity crunch, high unemployment and lack of funding from Government."
Mr Ndimande said during recent consultations held in the city's 29 wards, residents identified improved water and sewerage, health, housing, road development, education and social services as priorities.
He said the bulk of council revenue was expected to come from water and sewerage charges but noted that local authorities have been given a directive to ring fence these services.
"This means we will starve other services such as education and health. As we speak we have nothing to dispense in our clinics and the Government has not paid us anything towards the free maternity services we give," said Mr Ndimande.
"Out of $113 million, $63 million will cover staff costs as you are aware that council is a labour intensive entity. This is not a hopeful budget because of lack of funding and we are concerned as council."
Mr Ndimande said this year the budget failed to achieve set targets as council was already reeling under a deficit of $14,3 million.
He said out of a targeted $82million annual expenditure only $43million has been spent with two months before year end.
"Debtors owe council $60 million after the writing off of $49 million debts to residents compared to $78 million we owe different creditors. This means the city is technically insolvent and without external help in financing, the citizenry should run the city.
"Unless we do that the city would not expand and apparently the feeling we get is that people just want a maintenance budget and even that one is not enough. The little facilities we have are run down and some are being vandalised."
Mr Ndimande said council was operating with a skeletal staff of 3 561 instead of a full complement of 5 070 workers but was barred from recruiting.
He also said since the writing off of debts council's revenue collection has dropped from about $6 million per month to $3 million adding that loyal ratepayers were also developing cold feet.
The handful of participants at the meetings urged council to tighten its billing system and come up with strategies for attracting investment into the city to boost the local economy.
Others complained that the proposed $63 million for staff expenses was too much for a city that is struggling to meet service delivery expectations.
One of the participants from the floor said Bulawayo residents should take full responsibility in developing the city instead of sitting back and point fingers at the council.
Academic Mr Qhubani Moyo said stakeholders would have to shoulder the blame for lack of development in the city as they failed to turn up and make their contributions.
The council's senior public relations officer, Mrs Nesisa Mpofu, said water in the city's supply dams was dwindling fast and urged residents to conserve water.
Invited stakeholders who included civil society, political parties, informal traders, transport operators, residents, industry and commerce did not turn up for the meeting, which was supposed to start at 9am.
Newly elected MDC-T councillors also did not attend the meeting.
Senior council staff had to wait for about 40 minutes until they resolved to proceed with the meeting, which was attended by journalists and a handful of people, mainly students from the National University of Science and Technology (Nust).
The proposed budget would be tabled before the joint finance and general purposes committee for input before presentation at a full council meeting.
If there are no objectives the budget would be adopted and sent to Government for approval before 15 December.
Source - Chronicle
