adminPresenting the proposed budget before councillors and council staff in Gwanda recently, finance and licensing committee chairperson, Councillor Robert Banda said the proposed budget was crafted in consideration of the need to boost the low revenue inflows.
“I wish to state that in 2012 the Municipality of Gwanda proposes not to raise most charges except those where there is a real pressing need to do so after taking into account the actual costs being incurred to meet expected service standards,” said Clr Banda.
“The anticipated total revenue shall be $7,1 million while the total budgeted expenditure shall be $6,7 million. This leaves us with an anticipated surplus of $400 000.”
While charges for services such as sewage disposal and sanitation, cemeteries, clinics, fire and ambulance remain unchanged, water and housing administration costs have been increased.
The council proposed to increase rentals from $5 to $10 per room per month citing high costs of maintaining housing units.
Although fixed domestic charges remain at $1,80 per month, commercial charges would increase from $1,80 to $2,50 and $2 per month for the industrial.
Of the proposed $6, 7, million expenditure, $2,8 million would cover general expenses, $1,4 million employment costs, $1,3 million is for capital expenditure and $1,1 million would go towards repairs and maintenance.
Clr Banda said the council had set out to collect $7,9 million in 2011 and spend $7,7 million in 2011 but reported that a paltry 2,3 million has been collected since January.
That means only 29 percent of this year’s targeted budget has been achieved, plunging the cash strapped council into deeper financial straits.
Clr Banda said as a result the council has failed to achieve meaningful development in its quest to improve service delivery.
He said the council was surviving from hand to mouth as it was struggling to allocate the little funds to different projects that need to be carried out.
Clr Banda attributed poor revenue collections to liquidity constraints in the macro-economy, which informs low income by workers, joblessness, withdrawal of vehicle licences from council and the tendency by residents not to prioritise rates payment.
He said there was a need to improve revenue collection to facilitate quality service delivery.
Clr Banda, however, reported that the council has secured 800 000 pounds from a non-governmental organisation, the French Red Cross, for the refurbishment of the water treatment plant.
He also said the Government under the Public Sector Investment Programme (PSIP) allocated them $720 000 through the Infrastructural Development Bank of Zimbabwe (IDBZ) for the construction of the five megalitre water reservoir on top of Spitzkop Mountain and for rehabilitation of sewer infrastructure.
Clr Banda said the reservoir would supply water to all houses in Gwanda Town due to its position.
Gwanda council has been faced with numerous challenges. At some point the local authority was reported to be operating without an ambulance while its officials did not have adequate fleet of vehicles to use.
Online Reporter
Bongani Ndlovu