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Vusumuzi Dube, Online Reporter
BULAWAYO residents have heaved a sigh of relief and will not fork out more in tariffs next year after the Bulawayo City Council (BCC) adopted a standstill $158 million 2016 budget to ease pressure on residents and stakeholders.
The proposed expenditure budget is pegged at $107 633 672 and the capital budget at $45 977 972 to make up the $153 611 644 budget total.
Presenting the proposed budget at a special council meeting at the council chambers on Wednesday, chairperson of the Finance and Development Committee, Councillor James Sithole said while they had resolved to maintain the 2015 budget provisions. He also made a plea to residents to improve their payment of rates so that the council could get funds to complete key projects
“The 2016 revenue budget proposal of $107, 6 million is a standstill budget where there are no tariff increases. It seeks to address infrastructural maintenance and repairs, amortisation of creditors, servicing of loans, as well as providing for the daily operations of the Council.
“The capital budget is pegged at $45,9 million. The projects will be funded from borrowings, internal sources and/or grant funding. In the midst of the economic challenges, Council appeals to all citizens of Bulawayo to pay their bills. Currently the City is not in a position to invest as there are no surplus funds. The increase in debtors is an indication that some stakeholders are not honouring their obligations,” said Clr Sithole.
He said through consultations with residents the council had set up water, health, sewerage, housing, roads, education, public lighting, social services and fire and ambulance as priority areas.
Clr Sithole cautioned that the state of the economy and the increased electricity load shedding would constrain the council’s ability to service creditors and improve service delivery.
“The domestic economy continues to be affected by challenging factors and the trend is expected to continue to year 2016. These constraints in turn affect economic transformation as companies are not able to increase the productivity of their resource inputs and upgrade technologies used in production.
“The government has revised the GDP growth forecasts downwards from 3,2 percent to 1,5 percent meaning that marginal improvement is anticipated in light of deindustrialisation and growth of informal economy in the year 2016. The new electricity loading schedule is likely to put a strain in industry, further compounding the productivity challenges currently faced,” said Clr Sithole.
Some of the major provisions included in the proposed budget are that the total revenue expenditure for the rates and general services account for the year 2016 should amount to $48,82 million and the income budget for the account is $ 50,26 million where the surplus of $1,45 million will be used to fund other services.
“The water account encompasses conservation, administration, delivery, purification and reticulation of water. A revenue expenditure budget of $ 21, 32 million is provided for the water account.
“The income budget is $ 32.60 million. The surplus income in this account will be applied to rehabilitate water infrastructure and finance other important services such as personal health,” said Clr Sithole.
Further, Clr Sithole proposed that the 2016 capital budget of $45 977 972 be used to contribute towards improved management of the city’s existing infrastructure which are water bodies, sewerage, roads and other council properties.
“The 2016 proposed capital budget has been compiled with due consideration to the direct impact that it would have on the operating budget and the council cash position where projects are to be funded from either internal sources or from grant funding,” said Clr Sithole.
Online Reporter