Zimpapers Logo

Oliver Kazunga Senior Business Reporter
RATEPAYERS are in a fix as a number of local authorities have proposed to increase their tariffs in the 2015 budgets, a move likely to put more pressure on ratepayers.

A number of local authorities have issued notices of intention to increase licence fees, levies and other charges in their 2015 budgets.

The Bulawayo City Council (BCC), Bubi, Binga, Tsholotsho, Beitbridge and Mberengwa rural district councils are among those pushing for tariff increases.

The proposals have irked residents’ associations who feel there is no justification for increased charges given the prevailing economic challenges facing the country.

Bulawayo United Residents Association (BURA) chairman Winos Dube said it was unfortunate that local authorities were proposing to increase tariffs in next year’s budgets at a time when residents were already struggling to clear debts to councils.

“It’s unfortunate and disheartening to note that the local authorities including BCC have proposed to increase rates in their budgets for next year at a time when residents are already burdened,” said Dube.

“We foresee the rates of defaulting payment increasing significantly next year. For example, in Bulawayo a number of people have lost jobs due to company closures and they’re already struggling to service their bills. Increasing tariffs will worsen their plight.”

Bulawayo Progressive Residents Association (BPRA) coordinator Rodrick Fayayo concurred and urged local authorities to desist from crafting ambitious budgets.

“At the moment, ratepayers are failing to pay their bills to local authorities. The economy is performing badly.

“Local authorities should stop coming up with ambitious budgets as ratepayers don’t have money to pay owing to the prevailing economic situation,” he said.

BCC, which is owed more than $90 million in unpaid rates so far, has proposed a budget of $158 million for 2015, which will see tariffs increasing by four percent.

The proposed budget is only $2 million more than this year’s. Residents have up to 30 days to lodge objectives to the budget before it is submitted to the Ministry of Local Government, Public Works and National Housing for approval.

The council’s revenue budget was pegged at $107,298,518 and the capital budget at $50,797,712.

BCC expects to get the bulk of the money to finance the budget from the rates and general services account, which was expected to rake in about $48 million followed by the Water Account at $37 million and the sewerage account projected to bring about $12 million.

Zimbabwe Local Government Association (Zilga) chief executive officer Rodgers Mozhentiy defended local authorities saying the increase in budgets was done in consultation with ratepayers.

“Before a budget is prepared there is a consultation process which people must attend. The problem is that most people don’t attend these meetings and councils make decisions from contributions made by those who would’ve attended,” said Mozhentiy.

“I’ve been going around the country and most budgets that I saw aren’t that bad.”

Urban Councils Association of Zimbabwe (UCAZ) chairman, who is also Bulawayo Mayor, Councillor Martin Moyo, could not be reached for comment as his mobile number repeatedly rang unanswered.