Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
VICTORIA Falls residents could soon have a rates lifeline after councillors and municipal management agreed to review downwards the town’s $354 million budget for 2020.
The municipality crafted a $354 million budget for 2020, which is an 800 percent increase from last year’s $22 million budget.
Government had approved the budget.
Pressured by residents, the town’s councillors last week submitted a written motion to municipal management to craft a supplementary crisis budget to cushion residents and save the town.
The council convened a special meeting on Wednesday and resolved to identify some sections of the budget that can be set aside.
In an interview after the meeting, Acting Mayor Clr Patricia Mwale said while no final resolution had been made, councillors and management were in agreement on the need to review the budget downwards.
“The matter is still under discussion but we are all in agreement that something has to be done. A proposal has been made on how much should be cut but we can’t pre-empt details now as some modalities have to be done. Victoria Falls has its own standards and we have to look at areas which we can do without in the budget. We have left the management to identify such areas,” said Clr Mwale.
She chaired the meeting in the absence of “the two mayors” Clr Somveli Dlamini who was expelled by his party MDC Alliance but reinstated by Local Government and Public Works Minister July Moyo recently, and Clr Richard Mguni who the councillors had elected as his replacement.
Clr Mwale said the decision was inspired by the prevailing economic situation caused by Covid-19 pandemic.
“We are not just calling for reduction but we are looking at the situation as Covid-19 has become a burden because it has brought challenges that both council and residents had not budgeted for.
“We are worried about inflation but at the same time Victoria Falls set-up is different from other towns because of its geographical location and economy. We are tourism based hence there is no other economic activity for residents to cushion themselves which makes the town unique compared to other towns with alternative sources of income and revenue,” highlighted Clr Mwale.
She, however, said the council will remain guided by the Urban Councils Act and parent Ministry of Local Government.
If successful, the reviewed budget would lead to a waiver of interest on unpaid accounts and suspension of unnecessary capital expenditure and travel by the municipality and freezing of salaries and wage increases, according to the proposals.
Councillors said the resilience budget will avert a humanitarian crisis and ensure that the local authority can still provide service while at the same time not burdening residents and stakeholders more than they can bear.
Hotels, lodges and businesses affected by coronavirus will also be given a discount on rates and licence fees as they risk going bankrupt with borders closed and no flights coming. Some residents received water bills of up to $1 000 for the month of April as the municipality effected the 2020 budget.
In a recent interview, Victoria Falls Town Clerk Mr Ronnie Dube said the council had realised a serious decline in revenue as it collected about $2 million for the month of April, which is less than 20 percent of its usual monthly billing of around $15 million.
Usually in other months the local authority collects about 75 percent of the monthly billing, Mr Dube said. He said the municipality had approached Government seeking a bailout of $36,3 million for a period of three months in the wake of Covid-19 and is also engaging stakeholders to come up with alternative sources of revenue.
Government is yet to respond.
Ratepayers owed the municipality in excess of $54 million as at February 28, 2020. — @ ncubeleon
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