Chronicle Editor
Business Reporter
THE Bulawayo City Council only spent $16,5 million towards capital expenditure between January and November 2018 against a budgeted $48,1 million for the year.
The local authority has been battling reduced financial inflows in recent months, amid ballooning arrears by ratepayers. In its capital expenditure report for the 11-month period contained in the latest council minutes issued last week, the council revealed that it failed to meet its targeted annual capital expenditure.
“The capital budget for year 2018 is $48 142 546 and council has so far (by end of November) utilised $16 584 272 of the total capital budget, which translates to 34,45 percent of the total budget,” reads the report.
The bulk of the utilised funds, valued at about $7,9 million were channelled towards servicing of new residential stand areas under Emhlangeni Phase II, resealing of roads, fleet vehicle servicing and office rehabilitation.
According to the report $147 796 was used in rehabilitation of Mpopoma and Luveve swimming pools, sanitary lane gate sprucing and Entumbane temporary library, construction of Emganwini and Masunda public toilets as well as Inkunzi Beer Garden renovations.
Additional projects included cemetery development, which gobbled about $167 762. The local authority also undertook sewerage development and servicing of Highmount, rehabilitation of Cowdray Park outfall sewer, rehabilitation of Aisleby 1 and 2 waste water treatment and rehabilitation of SAST Maturation Ponds, all with a combined closing balance of $4,8 million as at end of November 2018. On the water front, council conducted servicing of Hlalani Kuhle and Highmount as well as refurbishment of water treatment plants at a cost of about $3,5 million.
Council has already increased, subject to Government approval, this year’s total budget by 39,3 percent from $152,5 million last year to $212,5 million, citing macro-economic pressures. With residents owing close to $100 million to council, the move is likely to worsen the burden despite endorsement by some stakeholders.
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 also been proposed at $95,9 million up from the current figure of $48 million.
Bulawayo Mayor, Councillor Solomon Mguni, last week hinted that residents may pay more than the 39 percent rates as tariffs might be increased further. He argued that the projected financial plan for 2019 has already been eroded by broader national economic environment.
Government is yet to approve the local authority’s 2019 budget.
derick.khumalo