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CASH-STRAPPED Mutare City Council is offering all residents and church institutions a once-off special promotion which will cut their debts by half if they settle 50 percent of their arrears.
The promotion runs from April 1 to May 31, 2015.
The promotion only exempts residential and church institutions not industrial and commercial companies.
Mutare mayor Councillor Tatenda Nhamarare said the full council resolution was meant to raise revenue for the cash-strapped council for salaries and to improve service delivery in the city.
He said for customers who were paying their accounts timeously and whose accounts were up to date as at March 31, they will be awarded a credit of 50 percent of their monthly bills over a period of two months from April 1.
“The promotion will run from April 1 to May 31. However, failure to take up the offer and settle accounts will result in the normal process of debt recovery including legal action being instituted in order to recover all outstanding dues,” said Clr Nhamarare.
The Town Clerk, Mr Obert Muzawazi, said after scrapping bills amounting to $23 million in 2013, debts had again ballooned to $25 million as of January 2015, which was unmanageable.
“Salaries are our biggest headache. We need to pay our employees to remain operational.
“Talk of efficient service delivery needs money, of which that money comes from rates.
“We agreed with the Minister of State for Manicaland Provincial Affairs, Cde Mandi Chimene on this promotion as a way to cushion people in the wake of the liquidity crunch in the country,” said Mr Muzawazi.
Last year, the City Engineer, Engineer Donaldson Nyatoti, revealed that they would this year conduct a trial run of pre-paid water meters in a move set to increase its revenue base following the increase in number of defaulters.
Finance director, Mr Lloyd Musasa, during the 2015 budget consultation last year reassured ratepayers that they would not increase rates and annual licence fees this year regardless of recording cumulative losses in 2014.
He said that the local authority required at least $1,4 million to operate optimally every month, but people were only paying less than a million dollars, leaving a shortfall of over $500 000.
“The council, which is apparently operating from hand-to-mouth, is failing to repair damaged roads, collect garbage as well as rehabilitate aged sewerage systems that are bursting daily.
Online Reporter