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Innocent Ruwende Municipal Reporter
Local Government, Public Works and National Housing Minister Saviour Kasukuwere has approved Harare City Council’s $343 million budget on condition that the local authority reduces its employment costs, among other requirements.
The city was also told to reduce its permanent overdraft facility of $1,5 million that carries a high interest rate.
Finance and Development Committee chairperson Councillor Tranos Moyo last week informed council that Minister Kasukuwere had approved the city’s budget.
According to a letter written by Local Government, Public Works and National Housing principal director (Urban Local Authorities), Ms Erica Jones, the budget was approved on condition that the city meets six direc- tives.
“I wish to inform you that the Honourable Minister (Kasukuwere) has approved your 2016 budget with the following conditions; the city brings its employment costs in line with 30:70 employment costs to service delivery ratio by end of the year.
“The city produce final accounts and present same audit so as to be current with the audit cycle by the end of the year. The audit of income-generating companies is completed expeditiously and dividends are paid to the city,” reads the letter.
Council was also ordered to reduce its permanent overdraft facility from $1,5 million as the interest is too high “for ratepayers to carry”.
The city was also asked to show improvement in revenue collection as indicated in its budget.
“The city takes a final decision on how many bank accounts it really needs and closes unnecessary accounts.
“Please ensure that council submits quarterly financial statements on time to facilitate the monitoring of the situation by the ministry,” said Ms Jones.
In the budget statement, the city will not increase charges for main line services such as water, property tax, health services and refuse fees this year.
The bulk of the money is expected to come from increased water sales expected to rake in $139,6 million and property tax for domestic, industrial and commercial at $118,1 million, while refuse collection will chip in with $26,8 million.
Finance and revenue collection is expected to contribute $4,3 million, the Zimbabwe National Roads Administration and billboards $4 million, administration and city architect $7,6 million, clamping and towing $5,6 million, health fees $7,4 million, rentals, leases and markets $15,1 million.
Estates are expected to contribute $8,6 million, public safety $4,6 million, while other sources will contribute under $1 mil- lion.
Salaries and allowances will take up 29,8 percent ($114,3 million), while service delivery expenditure will account for the remaining 70,1 percent.
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