Byo residents owe council $103 million

BULAWAYO residents are struggling to keep up with rate payments to the city council, as they owe close to $103 million as at March this year.

BULAWAYO residents are struggling to keep up with rate payments to the city council, as they owe close to $103 million as at March this year. BY MTHANDAZO NYONI

According to the latest council report, Bulawayo City Council is owed $103 million which is about 60% of its 2015 budget by residents in 29 wards. The council’s 2015 budget is $158 million.

The largest culprits are wards 1 and 6 which owe the city council $17 million and $15 million respectively. Others are wards 4, 7, 3 and 13 which owe $9 million, $8 million,$7 million and $6 million respectively.

The least owing wards are 14 and 23 who owe $937 300 and $944 463.

However, as at March 30, council owed statutory bodies such as National Social Security Authority, Municipal Provident Fund and the Zimbabwe Manpower Development Fund, TelOne and Zimbabwe Electricity Supply Authority as well as workers about $99 million.

The council said in March there was -3,85% drop in revenue when compared with the collections for the same period in 2014.

“The opening balance for the month of March 2015 was $519 306. Cash receipts for the month of March amounted to $5 649 806,” read part of the report.

“Cash collections for the month of March 2015 were less than the previous month’s collections by -1,75%. When compared with years 2013 and 2014, the current months’ collections declined.”

The report indicates that in the same month, payments of $5 910 801 were made to various service providers, resulting in a surplus of $258 311. Payments made in the month of March 2015 increased by 0,84% in comparison with the same period last year that is, from $5 858 438 in February 2014 to $ 5 910 801.

Accrued income to the month of March 2015 amounted to $24 million versus the partial budget of $27 million for the same period, giving a negative variance of $3,1 million. The variance, according to a report, represents unsatisfactory performance largely from the water, sewerage, rates and supplementary charges, and licence and fees income accounts.

Water consumption was less than what was budgeted for in turn affecting the income anticipated from water and sewerage accounts.

Expenditure to the month of March 2015 amounted to $17 million versus budgeted expenditure of $27 million.

“Reduced cash inflows affected budgeted expenditure resulting in a favourable variance of $9 million.

The bulk of expenditure is on salaries and allowances followed by general expenses, and lastly, repairs and maintenance,” reads the report.

The declining council revenue inflows remain a cause for concern, as this means that the council cannot meet is debt obligations elsewhere.

Government departments are also finding a challenge in paying their debts to the city council and according to the council report, at the beginning of the March the government owed the local authority $2,7 million.