Salaries chew up 81pc of Gweru council revenue

EMPLOYEE salaries and costs are chewing approximately 81 percent of Gweru City Council’s revenue, a development which is stifling service delivery and infrastructural maintenance.

According to a budget feedback for 2018 presented to residents, the local authority stated that since January, Gweru City Council had average monthly revenue of $1 510 018 of which $1 229 980 goes towards employment costs.

A paltry $483 562 goes towards repairs and maintenance.

Ideally, council employee costs should not exceed 40 percent of the total revenue while the remainder should go towards service delivery.

Council also conceded that this scenario was adversely affecting service delivery and council operations in general.

“As at August 31, 2018, total actual income collected came to $12 080 149 and this represented 48.54 percent of the expected income for the eight months,” reads the financial statement. “During these eight months the average monthly collection came to $1 510 018. On the hand monthly commitments came to $2 265 171. This leaves a shortfall of $755 153. Monthly employment costs are $1 229 980, general expenses are $475 762, repairs and maintenance are $483 562, an capital charges $62 406.

“The mismatch between commitments and cash received has a negative impact on all council operations and the level and quality of services being provided to residents, clients and other stakeholders. These include poor maintenance of infrastructure, plant and equipment resulting in increased repairs and maintenance costs.”

The local authority also conceded that it is failing to extricate itself from a financial crisis it plunged into since 2009.

“The financial position of council since 2009 has been weak,” reads the financial statement. “The budget performance has remained low. This has affected the operations of council and the quality of services rendered to the residents, clients and other stakeholders. In 2017 the total income budget was pegged at $40 819 767 and cash collections came to $20 448 331 which represented 50.01 percent of the budget.

“The income budget for the year ended December 2018 targeted to raise $ 38 533 390 against an expenditure budget of $ 37 324 390. Of note is the fact that the budget was static with no tariff increase.”