Saturday, September 18, 2021

Masvingo City Council gives nod to $220 million 2020 budget


Masvingo City Acting Town Clerk Edward Mukaratirwa

percent tariff increase
funds channelled towards Mucheke Trunk Sewer project
MASVINGO— Though residents, during the 2020 budget consultation
meetings, rejected any form of tariff increments until the council improved on
their service delivery mandate, the city fathers have gone ahead and approved
the 400 percent rate increments in the proposed 2020 city budget.
The city fathers have approved a $220 969 164 budget
for 2020 from which 54 percent will be raised from internal funds, 43 percent
from external borrowing and 3 percent from Inter- Governmental Fiscal
The 2020 budget is based on the assumption that the
macro and micro economic conditions will follow the projected forecasts.
Masvingo City Council’s finance committee chairperson
and Ward 9 councillor Babylon Beta said that the council failed to implement
much of the capital projects in 2019 and most of the projects have been carried
over to 2020.
“Some capital projects have been deferred until such a
time when funding is available. External borrowing is mainly for the water
argumentation programme, landfill, water mains upgrading and Rhodene sewer
“The Mucheke Truck Sewer will be funded from the
devolution funds. The need to move with water augmentation project is now
greater than ever before and the completion of the financial feasibility will
enhance that move.
“The budget requirement for the Water Augmentation
Phase Two that will entail the construction of a duplicate water treatment
plant is now $75 million as per the recently completed financial
feasibility    study report,” said Beta while presenting the
proposed budget.
The budget tries to address the perennial Masvingo
water problems which have refused to go away due to the worn out and
overwhelmed infrastructure.
The Water Augmentation Project Phase 2 has a set
budget to the tune of $75 million while the Bushmead pumps have an allocation
of $5 million.
Beta said the council has increased rates by 400
percent and this will see the council realising a budget surplus of about $300
“Rates income is expected to increase by 400 percent
emanating from the revaluation base of the ZWL$ against the USD.
“Those proposals will see the council realising a
surplus of $270 026,” said Beta.
Water and service charges for domestic users have gone
from $3, 60 for the first 18 cubic metres to $26 while every cubic metre above
18 has gone from $4.20 to $29.90.
For commercial users, the first 24 cubic metres has
risen from $6.30 to $45, 50 while every cubic metres above 24 has been raised
from $8, 10 to $52, 33.

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