Perpetua Murungweni
Masvingo City Council is proposing to raise a total of US$17 million in the 2024 financial year budget, with US$15 million coming from internal sources and US$2 million from external sources as indicated in their budget report.
“We are forecasting a 17 million USD budget for the upcoming 2024 financial year; internal sources are earmarked to mobilize and generate 15 million USD and external funding contributing 2 million USD,” reads the report.
Council is going to follow the best practice princeple so that they can implement the capital expenditure rate.
“Following the best practice principle, we are going to observe and implement the 25% capital expenditure ratio, and this will translate to 4.25 million USD.
“Adhering to capitalization will help confer sustenance to the Council as Capital assets help reduce hiring cost, improve efficiency on our plants, reduce maintenance cost and help transform operations of the Council,” reads the report.
The budget report also indicates that revenue will be collected mostly in ZWL$ at the prevailing rate in line with the government policy and will continue to request payment in foreign currency to support service delivery.
“The revenue shall be collected mainly in ZWL$ at the prevailing rates in line with government policy. However, council shall continue to request stakeholders and residents and rate payers to pay for some services in foreign currency to support service delivery, as water treatment chemicals, fuel, gas, motor vehicles, pumping equipment and spares are now being sold exclusively in foreign currency,” reads the report.
The report states that the economy is now trading significantly in the United States Dollars and for council to be able to continue providing and improving service delivery, there was need for guaranteed foreign currency receipts, the council proposed that revenue to be paid in USD and 40% of bills to be paid in USD.
“To be able to continue providing and improving service delivery we proposed that billing of council revenue to be done in USD to preserve value for money that may be lying in debtors.
“The, monthly bills raised beginning 1 January 2024, 40% be paid in foreign currency and the balance of 60% be paid in local currency at the prevailing bank rate on the date of payment and that debtor balances outstanding as at 31 December 2023, be converted to US$ on 1 January 2023 at the prevailing bank rate of 31 December 2023,” reads the report.
