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Locadia Mavhudzi Midlands Correspondent
The City of Gweru has proposed a $79 million supplementary budget up from the original $46 million that was adopted earlier this year.

Speaking at a supplementary budget proposal meeting on Wednesday, acting director of finance Mr Owen Masimba said council finds itself in serious liquidity challenges as the charges set in the approved budget have been rendered sub economic and unaffordable as prices of local authority tariffs have remained static.

“This supplementary budget has factored in the inflation rate of 97 percent plus the 1,35 percent induced by the 2 percent transaction tax and the average consumer price movement of 5 percent. This then meant that expenditure was adjusted with the inflation rate and the income was adjusted on an average basis to cover inflation and forecasted inflation random movements.

“We therefore propose a supplementary budget of RTGS$79 million from RTGS$46 approved early this year,” he said.

Mr Masimba said water provision remains a big challenge as the cost of treatment chemicals have sky rocketed.

“Inputs for the water production have increased drastically compared to the prices that were obtaining during 2019 budget preparations. The average percentage increase for all the consumables amounted to 420 percent. This comes as a funding gap which requires to be covered if council is to continue supplying water which is a basic human right. An upward adjustment in the water tariff is imperative in this regard,” he said.

Water purification chemicals- Mr Masimba said constitute 50 percent of the price of water.

He said the cost of fuel has also impacted council effectiveness on service delivery as it is a key cost driver. “Fuel prices went up from $1,32 when we made the original prices and it is now at $5,51 per litre without a commensurate rise in our revenue. Other factors leading to the proposed 2019 supplementary budget include exchange rate shocks , employment costs and repairs and maintenance which increased by up to 400 percent,” he said.

Notable proposals include burial fees which will be increased from $100 to $200 while ambulance fees will go up to $30 from $15.