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Bulawayo residents face rates hike

by Staff reporter
15 Sep 2024 at 09:58hrs | Views
Bulawayo residents may face higher rates and rentals next year as the city council considers revising various levies, along with introducing special road and water levies. This was revealed during the ongoing 2025 budget consultation meetings across the city's 29 wards.

In addition to rate hikes, the local authority is proposing to eliminate the current monthly free water allocation. Residents currently receive 3,000 litres of free water per month, a reduction from the 4,000 litres that had been in place for years before being cut by 40 percent in June.

The proposed 2025 budget stands at US$308 million, a significant increase from this year's US$264 million. Of the total, US$227 million is allocated for revenue, while US$81 million is earmarked for capital projects.

The council also plans to increase its salary allocation from US$80.1 million to US$108.7 million, which could lead to a clash with the government. The proposed salary allocation would account for 35 percent of the total budget, exceeding the government-mandated 30 percent limit for salaries versus 70 percent for service delivery.

General expenses are expected to rise from US$59.8 million to US$70.1 million, with repairs increasing from US$3.5 million to US$10.1 million. The maintenance budget is also set to grow, from US$23.9 million to US$37.7 million.

On the revenue side, the city plans to generate 25 percent of its income - approximately US$78.2 million - from water rates. To further boost income, the council is considering eliminating the free water allocation, which is expected to generate an additional US$6.5 million.

"Continued low rainfall patterns raise the question of offering free water during tight water rationing and shedding," reads part of the budget proposal. The council also plans to introduce a special water levy of US$1 per domestic property and US$10 per commercial property per month, aimed at raising US$2.22 million for water infrastructure rehabilitation, with the funds ring-fenced for this purpose.

A special roads levy is also being proposed, to be implemented in a similar manner to the water levy.

Additionally, the city council is considering increasing burial administration fees, noting that while it currently charges between US$40 and US$60 per grave, the actual cost of maintaining a grave is US$625. The council also aims to review administrative fees regularly to ensure full cost recovery for critical services.

As part of its broader development strategy, the Bulawayo City Council (BCC) plans to fast-track the implementation of the Special Economic Zone (SEZ) programme by obtaining necessary approvals from the SEZ Authority and exploring new economic partnerships, including city twinning arrangements.


Source - The Sunday News