BULAWAYO City Council’s revenue collection for January 2015 increased by 4,9% to $5,5 million against capital expenditure of $339 915, according to the latest council minutes.
A financial statement review prepared by the council’s financial director Kimpton Ndimande showed capital that the budget for 2015 stood at $50,8 million and council had thus far utilised $339 915, which translates to 0,67% of the total budget.
Service debtors to council increased to $97 million from $93,2 million at the beginning of January 2015 as a result of accruals exceeding receipts, as well as adjustments, Ndimande noted.
He indicated that council’s indebtedness ballooned to over $95,4 million while government indebtedness increased from $1,5 million to $1,9 million as at January 31 resulting from accruals which exceeded payments.
The council recorded a rare budget surplus of $8,7 million from January to November 2014, but noted that reduced expenditure over the year was mainly due to cashflow constraints.
Income for the period amounted to $84,3 million against expenditure of $75,8 million.
However, the income was against a budget of $95 million, while the city had budgeted to spend a similar amount.
Council lost $47 million in 2013 after the government directed all municipalities to cancel domestic water bills and property taxes incurred by households between February 2009 and June 2013, citing a tough economic environment that made it difficult for households to pay.
Since the directive, Bulawayo mayor Martin Moyo said municipal debt had increased by $90 million while revenue collected declined by almost 65% from about $6,9 million to around $2,4 million a month as the economy continued to struggle.
Last year, the council adopted a $158 million 2015 budget which raised tariffs by 4%.