Byo City Council misses income target

Byo City Council misses income target
Published: 07 January 2012 (968 Views)
The Bulawayo City Council missed its income target for the 10 months to October by more than $42 million as the closure of factories and loss of other sources of income affected revenue inflows.

According to a report by the city's director of finance Mr Kimpton Ndimande contained in the latest minutes, the council had up to 31 October raised $42 976 909 against a budgeted $85 793 404. The council budgeted to raise just under $103 million in the 12 months of 2011.

Mr Ndimande attributed the negative variance in revenue inflows to closure of shops and industries in the city, affecting budgeted income on licences.

Bulawayo has suffered from massive closure of companies as economic hardships take their toll. The city has lost its status as the country's industrial hub.

Government, concerned about the closure of companies resulting in job losses, late last year launched the $40 million Distressed Industries and Marginalised Areas Fund to assist companies from Matabeleland overcome working capital challenges.

The fund received an additional allocation of $30 million in the 2012 national budget.

However, companies are yet to benefit from the fund as modalities for disbursement are still being worked out.

Mr Ndimande said the council also lost significant income when Government gave the responsibility of vehicle licensing to the Zimbabwe National Road Administration which in turn contracted Zimpost to collect vehicle levies.

Mr Ndimande said the council suffered financially when Government reversed water levy, rates and  interest from 2009 which took effect in 2011.

"Budgeted income on water was based on anticipated higher consumption by residents and industries which has not been the case and also most water meters in residential and commercial properties are not working, consumption is based on estimates," he said.

He said because of non-working meters and general low level of industrial activity, council had not been able to benefit from water penalties.

Mr Ndimande said up to October, council had a cash deficit of about $5 million as expenditure of $48,4 million exceeded income.

However, expenditure for the 10 months to October had a positive variance of more than $37 million as council spent $48,4 million against the budgeted $85,7 million.

Meanwhile, council owes the Zimbabwe Revenue Authority and the National Social Security Authority a combined $2,075 million as it has not been remitting taxes and pensions to the statutory bodies.

According to a schedule in the council minutes, the local authority owed a total of $37,7 million to its creditors.

The bulk of the money is owed to Zesa which has more than $14 million due to it from unpaid electricity bills, and the Local

Authorities Pension Fund which is owed $13,2 million. At one time Zesa disconnected power to the local authority forcing council to use the more costly diesel-powered generators as the two parties failed to agree on a payment plan.

Mr Ndimande said the council owed Zimra $1,99 million in unremitted PAYE remittances.

The council has said it was failing to provide an efficient service because it was owed almost $60 million by ratepayers.

- TC

Tags: BCC, Council, Target, Income,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Mnangagwa's Zanu-PF panics

by Staff reporter | 26 April 2019 | 24 Views

'POSA bounces back as MOPA'

by Staff reporter | 26 April 2019 | 13 Views

Chamisa faces VPs headache

by Staff reporter | 26 April 2019 | 14 Views

CIO boss dies mysteriously

by Staff reporter | 26 April 2019 | 21 Views

ZANU PF wins 1st prize at ZITF

by Mandla Ndlovu | 26 April 2019 | 39 Views

Man dies after hearing girlfriend eloped with another lover

by Staff reporter | 26 April 2019 | 49 Views

Teacher knocks pupil's tooth out for failing to solve Maths problem

by Staff reporter | 26 April 2019 | 41 Views

No Zimbabwean referees at AFCON

by Staff reporter | 26 April 2019 | 34 Views

Indecent proposal ... female tenant walks round house undressed

by Staff reporter | 26 April 2019 | 40 Views

780 000 Zimbabwean young women HIV+

by Staff reporter | 26 April 2019 | 36 Views

Man dumped after paying lobola

by Staff reporter | 26 April 2019 | 38 Views

CIO summon Zimbabwe Rugby Union officials

by Mandla Ndlovu | 26 April 2019 | 29 Views

Man stabbed over friend's lover sex claim

by Staff reporter | 26 April 2019 | 22 Views

Cheating man kills wife, shares bed with corpse

by Staff reporter | 26 April 2019 | 37 Views

Hooker tosses baby into latrine to save job

by Staff reporter | 26 April 2019 | 34 Views

Bosso star fined for 'stealing' a team jersey

by Staff reporter | 26 April 2019 | 27 Views

Tsikamutanda killed for failing to reverse spell

by Staff reporter | 26 April 2019 | 33 Views

Cop extorts teen lover of cows

by Staff reporter | 26 April 2019 | 33 Views

Sex embargo earns wife a hiding

by Staff reporter | 26 April 2019 | 35 Views

Major shake-up in govt hospitals

by Staff reporter | 26 April 2019 | 25 Views

Dabengwa sets example for other VIPs

by Editorial - Daily News | 26 April 2019 | 39 Views

Zanu-PF restructuring moving at snail's pace

by Staff reporter | 26 April 2019 | 16 Views

Women activists slam Mliswa

by Staff reporter | 26 April 2019 | 35 Views

Anti-sanctions lobby set for official launch

by Staff reporter | 26 April 2019 | 20 Views

Guvamombe waits on High Court

by Staff reporter | 26 April 2019 | 19 Views

Mnangagwa arrives in Bulawayo in an expensive Dubai jet

by Mandla Ndlovu | 26 April 2019 | 59 Views

Nurse needed to accompany woman who was eaten by dogs to India

by Mandla Ndlovu | 26 April 2019 | 59 Views

40 million Americans live in poverty

by Staff reporter | 26 April 2019 | 70 Views

Tighten your belts till 2020, says Mthuli Ncube

by Staff reporter | 26 April 2019 | 80 Views

WATCH: Satire phone call that sparked Chiwenga's coup

by Mandla Ndlovu | 26 April 2019 | 96 Views

Churches pray for Dabengwa

by Staff reporter | 26 April 2019 | 57 Views

Fantasy that Mnangagwa would fix Zimbabwe now fully exposed

by David B. Moore | 26 April 2019 | 77 Views

Chamisa dismisses Mugabe ties

by newzimbabwe | 26 April 2019 | 95 Views

Museveni in Mugabe rib tickler as he jets in for ZITF

by newzimbabwe | 26 April 2019 | 88 Views

Nepotism row over Our Perfect Wedding Zimbabwe presenter

by newzimbabwe | 26 April 2019 | 94 Views