Byo City Council misses income target

Byo City Council misses income target
Published: 07 January 2012 (918 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

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 730 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1419 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1073 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1109 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1096 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 898 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 732 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 701 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 582 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 958 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 605 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 639 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 630 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 511 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 595 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 594 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 578 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 563 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 410 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 375 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 575 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 925 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 626 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 596 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 577 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 657 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 547 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 485 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 521 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 526 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 505 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 569 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 504 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 454 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 579 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 895 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 538 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 458 Views