Low density suburbs lag behind in rates payments
THE Bulawayo City Council is set to expand its Credit Control Unit to include a Debt Collection Unit in a bid to boost revenue collection and reduce the consumer debt.
This comes as the latest trends revealed by the local authority have shown that residents staying in the low density suburbs in the city are lagging behind in paying rentals as compared to those staying in the high density suburbs.
The local authority has further directed the enactment of a policy where no one can now access council services as long as they are owing.
Council is owed a total of $5 billion, while it is owing $2,9 million. According to the council latest report the new unit is tasked with ensuring the reduction of the debt that is owed to council.
“The Debt Collection Unit is an expansion of the Credit Control Unit. Further, there is a policy that stipulates that when service consumers applied for services from council they are required to clear their debts prior to receiving those services. The policy is being enforced across all council departments,” reads the report.
In debating the matter, councillors noted that while residents were not paying their debts, the local authority had to identify new revenue streams.
“Councillor Felix Mhaka noted with concern that council had concentrated on the billing system as the only means of collecting revenue. He said that council should look for other viable means to collect revenue.
“Clr Shadreck Sibanda noted that debts from the industrial and commercial sectors were still increasing at an alarming rate. In his view, he felt that council should effectively enforce the policy which would send a strong message to those who were in debt. He further said that in order to force these sectors to pay, services such as shop licences should not be renewed on condition that they fully paid their dues,” reads the report.
Deputy Mayor, Clr Mlandu Ncube took a swipe at big businesses, noting it was time for the local authority to set an example on the organisations and even possibly auction their properties when they go for a long time without paying their rentals.
“Clr Ncube was of the view that the bulk of industrial and commercial business owners were not paying because the by-laws were not being effectively enforced. He said some of the consumers had the capacity to pay but had adopted a culture of not paying for their properties.
He suggested that their properties should be auctioned in order for council to recover its debt. The move would send a wakeup call to all those who owed council,” reads the report.
Meanwhile, according to a consumer debtors movement per ward, most wards in low density suburbs are owing the most in terms of council rates. However, councillors from these wards have argued that while they owe the most they are also paying the most, arguing that their rates are significantly higher as compared to the high density suburbs.
Of the $5 billion owed to council, Ward One owes the highest at $742 million, followed by Ward Six, which owes $463 million, Ward Four owes $448 million, Ward Three $414 million and Ward Two which owes $229 million completes the top five of the wards that owe the most.
Some of the suburbs in these wards include Burnside, Ascot, Willsgrove, Glencoe, Lochview, Riverside, Buena Vista, Manningdale, Sunninghill, Waterford, Matsheumhlope Portion, Hillside, Fortunes Gate, Malindela, Woodlands, Ilanda, Selbourne Park, Suburbs, Hume Park, Killarney, Waterlea, Orange Groove, Queens Park East, Romney Park, Sunnyside, Paddonhurst, Kumalo, Glengarry, Parklands, Northlea and Mahatshula.
Commenting on these figures, Ward Four councillor, who is also caretaker councillor for Ward Three, Clr Silas Chigora said it must be taken into consideration that rates in low density suburbs were by nature higher than those in the high density suburbs.
“In the low density suburbs we have properties that occupy a larger space as compared to the high density suburbs hence the rates will be naturally higher. However, we are also doing our part in encouraging residents to pay the little they have, as is on Sunday (today) we are having a meeting with Mahatshula residents and next Sunday we are meeting with Waterford residents,” said Clr Chigora.