Gwanda proposes 150 percent tariffs hike

Sukulwenkosi Dube-Matutu, Gwanda Correspondent 

GWANDA Municipality has proposed a $175 million 2020 budget that will see tariffs going up by 150 percent.

Presenting the 2020 budget statement during a special full council meeting on Friday, finance and licensing committee chairperson, Cllr Gilbert Dube said some of the main projects to be covered under the budget include construction of a clinic and a primary school. 

He said last year’s budget was set at $10,1 million and by the end of the third quarter, the municipality had collected $4,1 million out of an expected $7,6 million. 

“I wish to state that in 2020 the municipality intends to adjust charges by 150 percent to meet service expectations. We shall however maintain house rentals at their present levels in 2020. This is in line with the pro-people stance of the national budget announced recently by the Minister of Finance and Economic Development,” he said.

“I wish to propose a total forecast income of $175 million. Under rates and general taxation the supplementary charges shall be pegged at $39 from the current $15,60 per month per high density suburb. Annual inspection fees of business licences remain at 35 percent as per the present rates.” 

Cllr Dube said of the municipality’s $175 million projected budget, $110 million will come from water bills; $11 million from refuse collection; $9 million from the public sector investment programme; $6 million from lease agreements; $5 million from devolution funds, among others.

He said under capital projects the municipality had allocated $2,5 million towards construction of Hlalani Kuhle Primary School and $1 million towards construction of Spitzkop Clinic.

“Among the projects that we have planned for the year 2020 is construction of Spitzkop Clinic. This is a crucial project as we want to ease congestion at Phakama Clinic which is the only clinic that the town has. Construction of Hlalani Kuhle Primary School is also important as we want to reduce distances walked by learners to schools and ease congestion at existing schools,” he said.

“We have also allocated $1 million towards public lighting as we want to install more lights and maintain existing ones. $500 000 has been allocated towards solar installations. We have challenges in pumping water as we rely on electricity and with the erratic power cuts we need a solar system which will ensure undisrupted power to pump water. The devolution fund which is now part of the budget will go a long way towards completion of long overdue infrastructure.” 

Cllr Dube said $2 million had been allocated towards water, $3 million towards sewer, $5 million towards road maintenance, $600 000 towards tower lights, $120 000 for multi-purpose sports courts and $16 million towards purchasing heavy construction vehicles among other projects. 

Cllr Dube said the municipality has made significant progress towards completion of a five megalitre water reservoir using devolution funds.

Cllr Dube urged ratepayers to prioritise settling municipal bills to ensure improved service delivery.

He said the town had recorded significant development projects in the CBD even though the local investment climate had remained subdued. — @DubeMatutu

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