CHINHOYI Chinhoyi Town Council, which is grappling with cash inflow problems, has resolved to extend a dispensation where residents are being given a 50% discount on outstanding 2009 and 2010 debts.
The resolution was made at last weeks full council meeting after acting finance director Zephaniah Chirarwes recommendation to extend the facility introduced last year by a further six months.
The 50% incentive induced payments to the tune of $21 753,80 for the month of December 2011 alone, therefore we recommend the extension of the incentive, Chirarwe said.
The local authority is owed millions in unpaid rentals, rates and other supplementary charges by residents, mostly informal traders and civil servants who are finding it hard to settle their bills.
Chirarwe told a recent finance committee meeting disconnections of water supplies to defaulters was underway and would continue to force errant households to negotiate payment plans with council.
Defaulters owing in excess of $5 000 risk legal action after the finance committee recommended sterner measures against them.
However, Councillor Richard Chafausipo warned council risked souring its relations with stakeholders if it continued with water disconnections or dragging defaulters to court.