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Nqobile Tshili, Chronicle Reporter
BULAWAYO rate payers will next month pay 300 percent more if Government approves the city’s proposed tariff increase through a $507 million second supplementary budget.
The municipality has also proposed a $2,8 billion budget for 2020 where rates will be expected to go up by a further 400 percent.
This emerged yesterday as council announced its 2019 second supplementary budget and the 2020 budget.
The Bulawayo City Council said the new tariffs were meant to ensure effective service delivery up to year end and beyond.
Ward 25 Councillor Mzama Dube stood in for Finance and Development Committee chairperson Councillor Mlandu Ncube to present the budget before a special full council meeting.
Clr Dube said it was critical for Bulawayo to accept a second supplementary budget for effective service delivery.
He said developments in the macro-economic environment have left the city with no option but to increase its budget.
“Your Worship, allow me to now turn to the proposed second supplementary budget for the year 2019. The proposed second supplementary budget is necessitated by the changes in the economy after the initial supplementary budget. These economic changes have negatively affected the 2019 budget to the extent that Council will not be able to continue providing services adequately up to the end of the year unless this supplementary budget is effected,” Clr Dube said.
“As earlier stated, water treatment chemicals are now among the products that are acquired at the prevailing bank rate while continuous fuel increases are causing havoc in service costs. Your Worship, in view of the foregoing, I propose that the total Second Supplementary Budget for 2019 be pegged at $507,589,934.”
Clr Dube said a second supplementary revenue budget of $206,9 million had been put forward from the initial $165,6 million that had been proposed at the beginning of 2019 while a $300,6 million capital budget had been recommended against $287,8 million which was set during initial budget.
He said all tariffs would be increased by 300 percent from October 2019 to finance the proposed second supplementary budget.
Clr Dube said council was also proposing a $2,8 billion budget for 2020 financed through a rates increase of 416 percent.
This means in just four months, tariffs in Bulawayo would have gone up by 700 percent.
“To prepare Bulawayo for a brighter future, the 2020 budget seeks to deliver further investment in our public services. The roads, water and sewerage infrastructure need a facelift. Our social services infrastructure such as schools and vocational centres are in a bad state and need to be restored. There is a need to equip our young people with the skills they need to survive in this hostile environment,” said Clr Dube.
“I therefore implore our residents to kindly pay council dues on time so that we are able to achieve all these things. Your Worship, in view of the foregoing, I propose that the total budget for 2020 be pegged at $2,779,412,294.”
He said council is proposing a $1,351 billion budget for revenue and $1,428 billion for capital projects.
Clr Dube said council is in full appreciation of challenges affecting residents but has to make tough decisions to continue providing services.
“Your Worship, council is mandated to deliver quality services to residents. Therefore tariff increases are inevitable if council is to remain afloat. The plight of residents cannot be ignored and hence there is a need to balance service delivery and tariff affordability. For the City to meet its financial obligations, a total of $112,59 million per month is required. Currently the accrual stands at $13,80 million. The proposed supplementary budget will ensure that council accrues $55,19 million per month from October to December 2019,” he said. — @nqotshili.
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