30pc discount for Chitungwiza ratepayers
CHITUNGWIZA Municipality is set to offer 30 percent discount to its ratepayers after the outgoing councillors passed a resolution to that effect during their last full council meeting held recently.
A report presented by the finance director, Mrs Evangelista Machona, stated that the discount will be available to residents who have arrears of up to 90 days only.
“It is recommended that 30 percent be awarded to residents who have been paying their bills to council and those with arrears which are up to 90 days,” she said.
“This will encourage those with high bills to pay them so as to benefit from future promotions and it excludes those handed over to debt collectors.”
The decision was unanimously approved by councillors during that meeting. Mrs Machona said it was not prudent to offer discounts to everyone as it will bear costs to the local authority.
“If the promotion is awarded to all ratepayers, a total of $19,9 million will be written off in our debtors figure and the resultant balance since our current ratio is less than one, the organisation would have a problem meeting its obligations,” she said.
“Promotions have previously resulted in dry revenue spells soon after it is over, as those who traditionally not pay will have benefited from the promotion.”
Mrs Machona said discount was only prudent when an organisation had a health relationship between its debtors and creditors balances. Presently, the local authority is owed more than $66,5 million by residents, while their creditors figure is at $69 million. Awarding of discounts to residents have proved to be successful in other local authorities like Harare, Ruwa and Zvimba.
In efforts to recover the outstanding amounts from residents, Chitungwiza Municipality tried to engage residents to come for payment plans, but few responded. The municipality then resorted to engaging a debt collector.
Few months ago, residents had petitioned the local authority to offer them discount to allow them to clear up their arrears.