Masvingo propose $30m budget

From George Maponga in MASVINGO

Masvingo City Council has proposed a $30 million budget for 2017 that will see rates and tariffs remaining unchanged.The city is proposing a revenue budget of $12,7 million for next year down from $17,1 million in the current year owing to the economic situation.Presenting his budget proposal on Tuesday, chairman of the finance committee Councillor Babylon Beta said revenue inflows into council coffers had slowed down as ratepayers were reluctant to pay.

Clr Beta said water and service charges were expected to generate $10,6 million next year.

“All tariffs have been maintained at 2016 levels with water at 80 cents per unit for domestic consumers, and refuse at $1 per bin collection,’’ he said.

“Rates income is expected to increase by 29 percent mainly due to new structures coming up. These proposals will see council realising a small surplus of $88 671,’’ said Clr Beta in his budget proposal.

He decried the proliferation of illegal water connections saying theft of water was hurting council.

Clr Beta said Masvingo City Council had stopped recruitment of new employees to replace retirees and others lost by natural wastage as part of efforts to attain the 30:70 ratio of salary costs against service delivery costs prescribed by Government.

Masvingo City had also suspended servicing of new residential stands in the current financial year owing to cash crunch.

Clr Beta said the city had been given powers by Government to borrow nearly $3 million to complete the 7km Mucheke Sewer Trunk line project that would allow the development of new residential stands in Runyararo West.

Council proposed a $17,6 million capital budget for next year to be financed through a $10 million loan facility from China Export and Import Bank, and over $2 million to come from Government under the Public Sector Investment Programme.

A further $5,6 million for capital projects was expected to be realised from internal council sources, added Cllr Beta.

Among the major capital projects to be implemented by council next year is the Phase 2 Water Augmentation project and purchase of road maintenance equipment such as front-end loaders and compressors.

Masvingo’s 2016 budget was nearly $28 million.