Online Reporter
Nqobile Bhebhe, Zimpapers Senior Writer
THE City of Bulawayo has reduced its proposed 2026 budget from US$224 million to US$220 million in response to objections from residents, businesses and other stakeholders.
The hospitality sector emerged as a major beneficiary noting the impact of community participation in local governance.
The adjustment indicates how statutory public objections, provided for under the Urban Councils Act (Chapter 29:15), play a crucial role in ensuring transparency, accountability and responsiveness in municipal budgeting processes.
In October, the local authority unveiled a standstill budget of US$224,7 million for the 2026 financial year, assuring residents that no increases would be made to rates and rentals.
The US$224,7 million proposal is meant to cushion households and businesses from escalating economic pressures while balancing urgent service delivery needs.
Under the initial proposal, US$157,5 million was allocated to recurrent expenditure while US$67,2 million went towards capital projects.
A significant US$70,3 million, almost a third of the entire budget was earmarked for water and sanitation improvements.
As required by law, after a budget presentation, the council invites stakeholders to submit objections on the proposed budget.
This is in line with the Urban Councils’ Act (Chapter 29:15).
Section 219 subsection 3 of the Urban Councils Act Chapter 29:15 (Charges by resolution) stipulates that
“If a statement has been advertised in terms of paragraph (a) of subsection (2) and within the period stipulated of 30 days referred to in that paragraph objections to the proposed tariffs, charges or deposits are lodged – (a) by 30 or more persons who are voters or who are users of the services to which the tariff, charges or deposit relates; or (b) where there are less than 30 such users of service concerned, but not less than 50 per centum of the number of such users;
Such tariffs, charges or deposits shall be reconsidered by the council, together with the objections so lodged, and they shall not come into operation unless the resolution is again passed by a majority of the total membership of the Council; provided that the council may in these circumstances, by such resolution, fix lower tariffs, charges or deposits than those objected to without further advertising.”
This year, the local authority received a total of 107 objections.
However, according to a report by the Joint Finance and Development and General Purposes Committees, which was set on Tuesday, and tabled at a full council meeting last Wednesday, “a number of these objections were identical.”.
Council noted that of the 107 objections, 40 consumers submitted identical letters, 36 identical objections came from Industry and Commerce Deputy Minister Raj Modi for properties under his control, 14 were from companies, eight were from members of the same family, five were identical letters from one director representing five entities, three came from a real estate agent and one was from a hotel.
“It should be noted that the content of the objections indicated that objectors were using a chain letter format. In essence, there were 27 unique contents from the 107 letters, meaning that Council was considering 27 unique objections,” the report said.
According to the local authority, objections raised concerns that the council had failed to implement tariffs approved by the Minister of Local Government in March 2025.
Stakeholders also argued that the cost of water at US$1,43 per kilolitre, negotiated in the presence of ministry officials, was higher than the later-established cost of US$0,80, excluding water losses.
After incorporating the standard 30 percent non-revenue water, the cost should be US$1,04, council said.
Residents further argued that tariffs across sectors were excessive and unaffordable.
One objection from a hotel significantly influenced adjustments to the 2026 budget.
The hotel objected to the non-domestic sewerage fixed charge based on water closets, noting that hospitality facilities inherently have high numbers of toilets.
“By their design, hotels and lodges were expected to have toilets per room thus they had a high number of water closets charged. For example, a hotel with 100 rooms would have more than 100 toilets (water closets). The fixed charge was currently $15 per water closet,” council noted.
According to the report, to support tourists into Bulawayo council was proposing to review the fixed charge for water closets.
“Where a hotel had less than 10 water closets, it would be charged US$15. A hotel with more than 10 water closets would be charged the first 10 at US$15 and any above that figure would pay US$8,50 per water closet.
“This would reduce the projected income by US$1 735 737. This relief was extended to institutions with more than 10 water closets,” it said.
To accommodate reduced income, the local authority proposed expenditure cuts including staff costs to be reduced by US$1 941 546, achieved by filling only 20 percent of vacancies, suspension of salary increments in 2026 and general expenses reduced by US$2 million.
Added to that, travel and subsistence allowances to be cut by 50 percent and repairs and maintenance maintained at existing levels to uphold the 20 percent threshold under Minimum Service Delivery Standards.
Council noted that stakeholders were increasingly demanding improved service delivery, which must be supported by sustainable funding mechanisms.
At the same time, donor funding had stagnated, compelling the council to explore innovative resource mobilisation strategies.
“The months ahead would require huge investments in service delivery. Therefore, the Council should intensify resource mobilisation.”
Council also emphasised that “Cabinet approved tariffs should be part of the 2026 budget and be implemented as per Ministerial guidelines. This would boost the Council’s image to both the stakeholders and Government.”
However, it warned that further cost reductions may push the wage bill beyond acceptable levels, requiring a reassessment of staffing levels and overall staff costs.
Councillor Dumisani Nkomo proposed budget alterations, noting that the 2026 budget should be reduced by a total of US$4 million.
Council resolved that “the total 2026 budget be reduced from US$224 million to US$220 million.”
Other key resolutions include “That a steeped tariff be introduced for water closets where an institution (NON-DOMESTIC) with less than 10 water closets will be charged US$15 and any additional water closets above this figure will attract a charge of US$8,50 per closet.
“That the expenditure proposals as outlined in this report be adopted.
That the rest of the charges and tariffs (not mentioned above) as was advertised in the 2026 budget proposals, remain unchanged.”
