Gokwe’s 2021 budget shocker

Zvamaida Murwira

Senior Reporter

GOKWE town council has come up with a whopping $530 million budget which represent more than 700 percent increase of rates and tariffs.

The tariffs, if implemented, will see residents in high density suburbs paying around $1 000, while those in low density suburbs will have to fork out around $2 200 per month.

Business operators will have to pay an average fee of US$500 per year in licences per premise.

Some of the charges ratepayers have to contend with, according to the budget, are rates pegged at $175, while education, clinic and fire levies are all pegged at $100 apiece, with road levy having been pegged at $300.

This has created outrage among residents, ratepayers, business community and other stakeholders who feel that the rates are not sustainable given that most businesses are closed owing to Covid-19 induced lockdown.

Gokwe business forum chairperson, Mr Stanslous Manyiwa, said there was no adequate consultation among stakeholders before the town came up with the tariffs.

“Besides, Gokwe town council has since moved in to implement the budget despite the fact that it has not been approved by central Government. It is important that council realises that we are in lockdown and business is low,” said Mr Manyiwa.

Gokwe Mapfungautsi MP, Cde Tawanda Karikoga, said they had a meeting to understand concerns that were raised by residents.

“We convened a meeting for residents, business persons, together with officials from council so that they find common ground,” he said. “Consultations are still ongoing.”

Gokwe town council acting town secretary, Mr Joseph Mandhokuwa, defended their budget, saying it was a result of widespread consultation, including publication of the budget in two national newspapers in compliance with the Urban Councils Act.

He said they had partly implemented the budget while waiting approval from central Government and implored stakeholders with concerns to approach them with a payment plan.

“From the date of the last advert, council opened 30 days to receive objections to the displayed and consulted tariffs, for which during the period no objection was received,” said Mr Mandhokuwa.

“Thereafter, council displayed its proposed tariffs and capital projects on public notice boards, the same were also shared using whatsup platforms to all stakeholders and every member of the business community.

“Our tariffs did not increase by a uniform percentage. The tariffs increased by an average of 700 percent.”

Mr Mandhokuwa said it was critical to note that council charges that were set in 2019 for 2020 had become sub-economic to sustain effective service delivery.

“Council never reviewed its charges nor did a supplementary budget in the year 2020 such that a high density residential suburb was paying less than US$0.5c/ per month,” he said.

“Thus the percentage increase in comparison to the prior year brings a notable high percentage.

“Our tariff regime is guided by the cost recovery principle to achieve Vision 2030. For quite some time, council has been heavily relying on Government grants.”

Mr Mandhokuwa said road levies increased significantly “due to the state of our roads and the nature of our soils so as to recover cost and upgrade them”.

“In 2021, council has adopted revenue collected based service delivery, where revenue for services shall be utilised where it has been collected, hence setting trivial and note tying tariffs will result in the year ending without service being rendered,” he said.

Mr Mandhokuwa said council continued to engage ratepayers.

“On the 13th of January 2021, council engaged the business community to hear their outcry,” he said. “Council cleared most of the misunderstandings and the two came to a point of agreeing that the budget was reasonable.

“However, due to Covid-19, some businesses will face challenges, hence the need for individual operators to approach council for payment plans or adopt the norm to pay monthly their bills which is viable and sustainable to all.”