THE Bulawayo City Council (BCC)’s revenue collection in the year 2015 slightly increased by 3,4% to $72 million compared to the previous year despite a rise in default rate due to harsh economic environment haunting the country, latest council minutes show.
BY MTHANDAZO NYONI
A financial statement review prepared by financial director Kimpton Ndimande and seen by NewsDay revealed that the total receipts in the year 2015 increased by 3,35% compared to the years 2014 which recorded $70 million.
Ndimande noted that cash collections for the month of December 2015 were more than the previous month’s collections by 15%.
He said during the period under review, debtors increased to $120 million from $118 million as at the end of December 2015 due to poor economic climate which has seen the majority of residents battling to pay their monthly rates.
“The increase is as a result of inadequate payment of bills by some consumers,” Ndimande said.
Ndimande also noted that the creditors balance for the month increased from $117 million to $118 as council continues to acquire goods and services on credit while there was a backlog in payments for services received.
Last year, BCC had tabled a $158 million budget anchored on domestic financing but Ndimande said unpaid rates continue to be a major headache and means it may not meet the target.
Domestic debtors top the list at $68 million followed by industrial and commercial debtors at $48 million while government departments owe the council more than $4 million.