Saturday, April 25, 2009

(HERALD) Council unveils revised budget

Council unveils revised budget
By Michael Padera

HARARE City Council has slashed the 2009 budget by US$55,3 million from US$185 million to US$129,7 million with effect from February 1.

Rates, refuse fees and supplementary charges for residential and business premises have been reduced by half.

The reduction was approved yesterday during a full council meeting, implying that the city now owes residents US$15 million in payments for February and March.

However, in March the city had billed for US$15 million but was only able to collect US$2,6 million which means that only residents who had paid their bills in full will be credited.

Those that had not paid anything to the city still owe half the amounts reflected on their monthly bills.

"Council approves the revision of its revenue budget from US$185 million to US$129,7 million. Council notes that the ratepayers be owed approximately US$15 million for retrospective adjustments for the months of February and March 2009," reads part of the approved minutes.

According to the schedule of the minutes the average bill for a high-density area is now US$13,98, down from US$25,50 while that for medium-density suburbs like Mabelreign is now US$30,10, down from US$58,80.

Residents of low-density suburbs like Borrowdale, Glen Lorne and Chisipite will now pay US$57,31 as opposed to the US$98,80 proposed in the original budget.

Industrial concerns that had initially been asked to pay monthly rates of US$3 545 would now pay US$1 414,41 while the Reserve Bank of Zimbabwe, which had the highest bill of US$33 460, will now pay US$17 378.

The amounts include value added tax and refuse fees.

Water is excluded in the revised budget.

Councillor Tungamirai Madzokere urged council to enact a by-law that compels landlords to charge rentals that are in line with the council charges.

He said landlords were ripping off tenants.

All the other city charges have been revised downwards but by different percentages.

The revision of the budget follows an outcry by the residents who felt the charges were too exorbitant and a realisation that the costs of goods and services were stabilising or coming down.

The Government had also directed that all service providers revise their tariffs downwards.

On its part the city has already reviewed downwards its workers salaries and allowances in line with the revised budget.

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