Bulawayo residents to fork out more in rates

BULAWAYO residents will next year fork out more in rates and rentals as the city's 2019 budget has increased to $212,5 million from $152,5 million.

The increase, the Bulawayo City Council (BCC) said, is to enable council to deliver services to residents. The local authority further revealed that if the country's economy continues in its current trajectory, they might be forced to come up with a supplementary budget.

Chairperson of the council Finance and Development committee, Councillor Silas Chigora presented the local authority's 2019 budget at the council chambers yesterday. Clr Chigora revealed that both fixed charges and billed payments will increase.

Fixed charges will increase from between 34,5 percent and 188 percent while the billed payments will increase by five percent.

"Council last increased tariffs by four percent in 2015. For the past three years, Council did not increase tariffs. For the proposed budget to deliver services to the residents, it has to be financed through tariff increases. Council is aware of the plight of residents and as such it had to balance level of service delivery and tariff affordability. Water fixed charges and sewerage fixed charges have been increased in order to invest in infrastructure rehabilitation. Council continues to lose treated water through pipe bursts and the increase would assist in that regard. The marginal increase proposals of five percent on billed payments has been influenced by inflation figures, these include, water consumption, sewerage usage, rentals, solid waste management and rates," said Clr Chigora.

Council is also proposing to increase fixed charges for non-domestic water and sewerage by five percent. Grave charges will also increase with a standard grave increasing by more than 70 percent from $37 to $63.

"The increase in grave charges would assist Council to maintain cemeteries. Council carries the responsibility of maintaining cemeteries in perpetuity and this increase will go a long in ensuring proper maintenance. Going forward cremation will be encouraged and fees for the same revised downwards," he said.

In the proposed budget, council has set a revenue budget of $116,6 million up from this year's figure of $104,5 million. Capital expenditure for 2019 has been pegged at $95,9 million up from $48 million and this brings the total to $212,5 million up from $152,5 million representing a 39,3 percent increase.

"The operating environment is characterised by a number of shortcomings such as high interest rates, lack of foreign currency, low capacity utilisation and high unemployment. The City is faced with serious challenges which might affect the level of service delivery. In particular, a lot of treated water is lost through pipe bursts due to aged infrastructure. Sewerage spillages should also be avoided so as to keep diseases such cholera out of Bulawayo.

"The successful implementation of policy measures proposed in this Budget will no doubt require full participation of our partners, ratepayers and all other stakeholders. Our City has good records of astute stewardship in the utilisation of limited resources, we need to uphold that good name," said Clr Chigora.