Kwekwe hikes water taris by 50pc
KWEKWE residents should brace for a 50 percent increase in water tariffs starting next month after the local authority reviewed upwards its charges citing the need to remain afloat amid inflationary pressures.
This comes as the local authority has proposed a $5,7 billion budget for the year 2022 up from $1,9 billion for last year.
In the budget proposal, which was done in full consultation with the public and business community, Kwekwe proposed to increase water tariffs for the high-density suburbs from $160 to $240 while for the commercial users, tariffs will go to $258 up from $191.
Refuse removal charges will be pegged at $800 from $650 with sewerage tariffs going to $825 up from $600 and fire levy from $350 to $500.
Public lighting costs have been reviewed from $400 to $500 and education levy up to $500 from $400.
Acting Town Clerk, Dr Lucia Mnkandla, said council consulted stakeholders in coming up with the 2022 budget.
“In consultation meetings, which we carried out in all wards, it was agreed that it was imperative for ratepayers to complement council’s efforts of providing services by upholding the culture of timely settlement of their bills for overall smooth operations and management of the local authority,” she said.
“The council budget was prepared on a cost recovery basis so as to provide affordable and efficient service to the city.
This saw the budget increasing all the 2021 tariffs in line with macro-economic fundamentals, also taking into account inflation figures.
“In coming up with the budget, council took into consideration council’s ability to continue offering services at cost recovery basis, economic indicators, financial performance of council liquidity and the vulnerable groups to access basic services among other factors.”
Dr Mkandla said the 2021 budget performance stood at 65 percent as ratepayers were still struggling to pay their dues hence derailing service delivery.
“Ratepayers continue to struggle to pay bills hence council has failed to honour its obligations to creditors on time. By September 30, our total expenditure stood at $672 279 789 while total income stood at $1 234 543 967 against a budget of $1 886 320 341,” she said.
“This was due to cash flow challenges as a result of poor revenue inflows.”
As at 30 September Kwekwe was owed $857 million while it owed $163 million. The local authority has put in place debt recovery strategies including face-to-face engagement, payment plans, legal action, telephone follow ups and also door-to-door debt collection.
Dr Mnkandla said council has since managed to enter into payment plans with Zimra, medical aid societies, Nssa, Zinwa, LAPF, Zimdef among other creditors. She said the city prides itself in being one of the few local authorities whose 2020 financial statements were audited.-The Chronicle
