BULAWAYO City Council (BCC)’s debt has ballooned to $173 million as of September this year and the local authority is struggling to service it owing to decline in revenue collections, latest council minutes have shown.
BY MTHANDAZO NYONI
According to the latest council minutes, as at September 30, 2017, BCC’s debt stood at $173 million, as council continues to acquire goods and services on credit.
Council owes statutory bodies such as National Social Security Authority, Zimbabwe Manpower Development Fund, Local Authorities Pension Fund, Zimbabwe Urban Councils Workers Union, funeral policies, among others about $50,8 million, Zesa about $95 million.
The council also owes workers $3,8 million in outstanding salaries and allowances while unpaid taxes have increased to $3,9 million. Financial institutions are owed $18,7 million including the Infrastructure Development Bank of Zimbabwe debt.
It also owes trade creditors and utilities $1,65 million.
The council is owed $166 million by residents. Government on the other hand owes $4,7 million.
Between January and September 2017, council noted that accrued income amounted to $76,9 million against a budget of $79,1 million, giving an adverse variance of $2,2 million.
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Major causes of this variance included non-renewal of trading licences by some businesses owing to harsh economic conditions, increased interest charges owing to an increase in the number of defaulting ratepayers, reduced water consumption which affected the water and sewerage accounts.
Council said other income account which includes towing fees, parking fees, burial fees, patient fees and ambulance had a lower than expected demand.
On the other hand, accrued expenditure for the same period amounted to $61 million compared to a budgeted figure of $79 million.
Council said low cash inflows negatively impacted expenditure levels resulting in a variance of $18 million. Of this accrued expenditure, salaries and allowances took the biggest amount of $41 million followed by general expenditure with $26 million; repairs and maintenance add up to $6 million.
