Masvingo adopts $26m budget

THE City of Masvingo yesterday adopted a $26 million budget proposal for 2018 that will see rates and tariffs remaining at the current levels.

Six out of the city’s 10 councillors voted for the budget, which awaits Government approval.

Four councillors from Zanu-PF boycotted the budget presentation meeting owing to as yet undisclosed reasons.

Presenting the budget yesterday, finance committee chairperson Councillor Barbington Beta said all tariffs had been maintained at the current levels, with water pegged at 0.80 cents per unit for domestic consumers who will also have to bear with a $1 bin collection fee per household.

The 2018 budget proposals are slightly lower than this year’s over $27 million budget, with Clr Beta saying council had scaled down the budget by nearly $2 million.

“We are looking at spending about US$5,7 million on human capital expenditure, with US$4,2 million going towards general expenses, with US$2,6 million going towards repairs and maintenance,” Clr Beta said.

He said about US$12,9 million would be expended on capital projects funded by internal revenue and external loans.

“Some capital projects have been deferred until such a time when affordable funding is available on the market,” said Cllr Beta. “Total capital expenditure is above the recommended threshold of 25 percent mainly because of the Water Augmentation Loan which is critical to the survival of residents of this city.”

Clr Beta said nearly $8 million for capital projects will be financed through internal loans, with about US$5 million coming from a China Export and Import Bank loan.

Besides the Water Augmentation project, other capital projects in the pipeline include completion of the seven-kilometre Mucheke Sewer Trunkline and servicing of nearly 200 high and low density housing stands.

There are also plans to construct a Home Economics block at Shakashe Primary School and requisite furniture, among others.

Clr Beta said Masvingo City expected to raise about US$10,5 million in revenue from water and service charges.

He said council also pinned hopes of boosting its coffers by engaging debt collectors to recover arrears from commercial and the industrial sector debtors.

Clr Beta bemoaned the proliferation of illegal water connections that were causing revenue pilferage, saying council was aiming at strengthening the metre reading department.

Masvingo does not anticipate any Government funding next year after advice from the Ministry of Local Government, Public Works and National Housing that funding under the Public Sector Investment Programme would not be availed.

While noting that residents where struggling to service their debts to council owing to the prevailing cash challenges, Clr Beta noted that there had been a surge in domestic demand owing to the effects of a bumper harvest in the 2016/17 farming season, thanks to the Government’s Command Agriculture programme.

He said council expected a marginal increase in revenue inflows on the back of an expanded rates and tariffs base, with the city’s population having grown by about two percent annually.

Masvingo has an estimated population of 90 000.