adminpercent of revenue collected is now going towards staff costs.
Before the cut, 87 percent of the revenue was used to pay for salaries and allowances leaving very little for service delivery.
Last month the team reported a US$400 000 cut.
Acting town clerk Mr Fungai Mbetsa confirmed yesterday that his team had reduced the pay bill to US$900 000 from the US$1,7 million through the removal of illegal allowances and reversal of an unlawful pay increase across the board.
“We have reduced the pay bill to US$900 000 from US$1,7 million reducing allowances in line with the ministerial directive,” he said.
Mr Mbetsa said council had however, retained basic allowances such as transport, housing, water and electricity.
He said the previous management was diverting funds to salaries leaving the council incapacitated to deliver services.
A full council meeting on Tuesday approved the cuts making the reduction legal and binding.
He said council will soon retrench some workers to ensure that the salary bill conforms to the 30 percent of revenue collected as directed by Government.
Mr Mbetsa said the 204 employees that were illegally employed last year will be given a three month salary as notice pay and two months pay as gratuity.
“They started work last year. We believe this is a fair package,” he said.
Mr Mbetsa said council was in discussion with pension funds to start processing pensions for the employees who have reached retirement age.
A local bank, he said, had agreed to fund the packages of part of the 186 workers employed in the council liquour section. Council bars will be leased out following a string of losses.
Skilled workers will be retained.
However, Mr Mbetsa said there was some resistance from the workers union leadership which is trying to mobilise the workers to rise against the resuscitation team.
Online Reporter