Gweru proposes US$35m budget

THE cash strapped Gweru City Council, choking under a $250m debt, has proposed a US$35 million 2021 budget translating to about $2,9 billion at the interbank rate.

The local authority is operating under a $1,9 billion budget which is said to have been eroded by inflation and has forced council to suspend all capital projects and focus on service delivery.

Council said their debt has ballooned to $250 million as of September 30, an increase of $64 million from $186 million in a space of one month

The council has introduced dual pricing system.

Speaking during a stakeholders’ consultation meeting for the 2021 budget, Mayor Councillor Josiah Makombe said they are going to implement the 2017 budget which was US$35 million to mitigate against the erosion of the budget by inflation.

“We are going to implement the 2017 budget of US$35million. That’s is our proposal. We are suspending implementation of all capital projects to focus on service delivery,” he said.

Cllr Makombe said among the suspended projects was the planned construction of a fire station.

“We will focus more on service delivery. We have proposed to suspend capital projects like the construction of a fire station. We sat down as councillors and management and decided to have the US$35 million budget mainly centred on service delivery,” he said.

The Mayor said council urgently needs more than US$1 million for the new dumpsite at Go-Beer Farm as the old dumpsite in Woodlands suburb is too close to the residential area. “We need more than US$1 million to remove the dumpsite away from the people to the farm,” Cllr Makombe said.

Cllr Makombe pleaded with ratepayers to pay their bills to ensure the city executes its mandate of providing services to residents.

He said most of the challenges the city was facing was as a result of the ratepayers’ failure to pay their bills.

“I humbly plead with you as stakeholders and clients to pay your bills to ensure quality service provision,” said Cllr Makombe.

He said council revenue collection continues to fall far short of its recurrent expenditure, a scenario he said was affecting the municipality’s obligation to its creditors.

Cllr Makombe said the low cashflow was also affecting service provision.

GCC acting finance director Mr Michael Verenga said ratepayers were not honouring their obligations, making it difficult for council to fund its operations.

He said council’s creditors stood at $132 million and Zesa alone was owed more than $70 million.

“Our debtors as at September 30 2020 stood at $250 million up from $186 million as at August 31. It appears there is loss of appetite by residents to pay their bills. We urge ratepayers to honour their obligations,” he said.-chronicle.co.zw