Bulawayo residents to pay more in tariffs

BULAWAYO residents may pay more than the 39 percent rates and tariff increase proposed in the city council's 2019 budget as the local authority is mulling further increasing the figure.

The Mayor, Councillor Solomon Mguni, yesterday said the projected financial plan has been eroded by broader national economic environment. Government is yet to approve the local authority's 2019 budget.

In October last year, council proposed an increase in its 2019 budget with revenue collections expected to increase from $104,5 million to $116,6 million. The council had also proposed to increase capital expenditure from $48 million to $95,9 million this year.

In an interview yesterday Cllr Mguni confirmed the development.

"Our 2019 budget is yet to be approved by the parent ministry (Ministry of Local Government, Public Works and National Housing). We are aware that the budget has already been eroded by inflation before even being approved. To that effect you will recall that in his budget statement in November 2018, the Chairperson of Finance and Development committee, Clr Silas Chigora hinted that we may be forced to do a midterm budget review and possibly go back to the residents with a supplementary budget," said Clr Mguni.

He said at the moment the council would "eat what it kills" to continue providing efficient services.

"It's not our intention to burden residents. But the central monetary policy affected every one and our bank savings were eroded over night. We had no nostro reserves yet, most of our service providers and suppliers now require foreign currency payments," he said.

To generate foreign currency, the council has implemented a 50 percent debt cancellation strategy for those paying bills in foreign currency while stating that international organisations are now expected to pay their rates in that currency.

Clr Mguni said water and sewer provision, roads, lighting and solid waste management will remain on the council's top agenda. He said council will soon avail its five year strategic plan running from 2019-2023 whose target will be to improve residents' living conditions through provision of houses. Bulawayo's housing backlog has surpassed 110 000.

"We want to reduce the housing backlog by at least 20 000 units in the next 5 years. So, we will be engaging banks and renowned private developers to help council ease the housing backlog," he said.

Before the 39 percent increase proposed in the 2019 budget, bills for residents that used water within rationing limits in the Western suburbs averaged about $25 monthly while residents in the Eastern areas paid up to $65 monthly.