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Vusumuzi Dube, Municipal Reporter
THE Bulawayo City Council has secured 19 out of 60 court orders allowing them to auction off properties whose owners have failed to pay rates and rentals for as much as 30 years, it has been learnt.
The properties, most of which are located in the low-density suburbs, reportedly went for five to 30 years without paying rates and rentals resulting in the local authority, in 2014, exposing them in the local Press calling on their owners to settle their debts or risk losing the properties. Initially the list had 1 079 properties.
Delivering his valedictory speech recently, the Mayor, Councillor Martin Moyo said there was a need for property owners to honour their debts instead of absenting themselves from their properties and also failing to pay their obligations.
“A total of 1 079 low density properties were identified for not paying rates and rentals for a period ranging from five years to above 30 years. However, 858 responded to advertisements in the local press inviting them to come forward and claim their properties.
“They have since either cleared their rates arrears or made payment plans. Sixty properties that had not paid rates for more than 10 years were handed over for disposal in accordance with the Titles registration and derelict lands Act (chapter 20:20),” said Clr Moyo.
He said while the process of securing court orders to allow for the disposal of the other properties to help recover council money was slow they were however, pleased with the response rate from property owners after the local authority had released the list of absconders.
The mayor further revealed that in terms of their property worth the city’s non-domestic rateable value currently stands at $1,225 billion with a total of 136 165 properties, of which 110 214 are in the high density areas and 25 951 in the low density areas.
Meanwhile, in terms of revenue inflows, Clr Moyo revealed that the local authority was currently collecting an average of $5 million with the bulk of council’s revenue being derived from water, owners’ rates, solid waste management fees and sewerage fees.
“Cash collections for the period under review have been an average of $5 million per month. The cash receipts have been insufficient to finance the budget each year as council needs an average of $7,5 million a month to provide services effectively.
“The billed income averaged between $6,9 million to $7,5 million a month, while other miscellaneous income accounted for about $800 000 a month,” said the mayor.
He said owing to a number of challenges faced due to the nation’s economic challenges consumers were still failing to pay their rates with the debtors figure pegged at $176 086 641 as at February 2018.
“These challenges have made it difficult for council to service its creditors, which as at February 2018 stands at $173 628 984. Some suppliers of critical inputs like water chemicals and vehicle spare parts have put council on cash basis,” said Clr Moyo.
derick.khumalo