adminBusiness Correspondent
MUTARE City Council will not increase rates and annual licence fees, the finance director, Mr Lloyd Musasa, has said.
Speaking during the 2015 budget consultation on Wednesday, Mr Musasa said regardless of recording cumulative losses this year, council would not increase the shop licences or rates tariffs.
Last year shop licences were increased by US$50, which saw licences for wholesalers and big retail outlets going up from US$550 to US$600 while general shop licences went up from US$350 to US$400.
Mr Musasa said this year Mutare Council accrued an accumulative deficit of US$5 million.
He added that recurrent expenditure continued to squeeze the council each year.
Mutare council was spending more money than it was getting from revenue inflows, raising only 12,1 million from the targeted US$17,7 million.
“We are getting less money from revenue inflows than what we are spending so we end up borrowing. Our overdraft position with FBC Bank as at October 30, 2014 was US$3,479 million.
“The manufacturing industry used to be the backbone of our economy, but sadly we all know the state of our industry now. This has also greatly affected us in Mutare,” he said.
Mr Musasa further revealed that as of October the insolvent council was owed US$21,4 million by ratepayers, of which 80 percent of the arrears were from residential stands. Residential arrears are US$16 million while industrial and commercial arrears have reached US$4 million.
“I am afraid the end result will be our failure to provide services to residents if we continue to operate like this. I see that there is a lot of mistrust between council and residents, which is leading to some form of sabotage in paying rates.
“In 2015 we want to have more consultations with residents answering all their queries so that we gain their trust,” he said.
Speaking on the sidelines, Mr Musasa said in other cities discounts were being offered to incentivise ratepayers and Mutare council might consider this in 2015 after consultation.
The two-day budget consultation, which started last Tuesday, was attended by councillors, residents associations and residents.
Online Reporter