Respite for residents

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THE Bulawayo City Council has resolved not to raise tariffs next year owing to the persistent harsh economic conditions

THE Bulawayo City Council has resolved not to raise tariffs next year owing to the persistent harsh economic conditions which have seen the majority of residents battling to pay their monthly rates.

GAMMA MUDARIKIRI OWN CORRESPONDENT

Presenting the 2014 budget yesterday, chairperson of the finance and development committee James Sithole said increasing rates in 2014 would not be prudent due to a stagnant economy.

“In view of the challenges affecting the ratepayers and the city, the council is recommending a standstill tariff structure,” said Sithole. “No tariff increases in 2014,” he added.

A freeze in rate increases in 2014 comes amid a plethora of financial challenges besetting the local authority following a government directive to all local authorities to write off debts on domestic consumer accounts which saw the city council clearing a total $49,9 million.

The local authority was left struggling to pay its workers and burdened with a debt of $78 million worsened by residents’ failure to service their bills which ballooned to $64 million as of September this year.

Sithole said the low levels of disposable income in the city due to deindustrialisation and liquidity constraints, among others, renders the improvement of service delivery a challenge, adding that there was need to balance the rehabilitation of dilapidated infrastructure and payment of recurrent costs.

“All the service deliverables need substantial finance to be achieved as in some areas infrastructure had virtually collapsed,” he added.

Sithole said other challenges expected to affect the financing of next year’s budget include lack of funding in the form of loans and grants from the government, inability to pay timeously for services rendered by some consumers, industry, commerce and the government and the under-performance of strategic business units.

He added that the city economic outlook for 2014 would largely depend on government direction that is yet to be clarified with the poor performance of industry in the city expected to compromise the operation of the local authority.

However, the council is hoping for government support as provided by the new Constitution which allows Treasury to allocate 5% of the national budget to local authorities.

“It is council’s hope that the Ministry of Finance will follow through and disburse the money as soon as possible in the New Year and this would greatly assist in improving service delivery,” he said.

The city council is next year anticipating reduced revenue inflows with the continued harsh economic conditions and has pegged capital budget at $42 million compared to $45 million recorded last year. Revenue inflows are expected to drop to $113 million from $123 million achieved last year.

The 2014 budget will prioritise water and sewerage, followed by health, housing, roads, education public lighting and then social services, fire and ambulances.

Sithole paid tribute to ratepayers who have continued to service their bills despite the prevalent harsh economic conditions.

“Ratepayers are therefore encouraged to pay their bills on time so as to enjoy quality services; the city wishes to regain its status of being the cleanest city in the region,” he added.

Bulawayo has been the hardest hit by deindustrialisation after recording close to 100 company closures last year rendering thousands of residents jobless.