Harare City Council’s budget proposals delivered last night
will see the average bill for high-density householders rise to $225 a month.
In the budget, council quadrupled water charges, raised
sewer charges between 2.4-fold and 3-fold, doubled rents for council property,
but kept clinic consultation fees at 2019 levels.
An average low-density property holder will pay almost $700
a month, according to council estimates, although variations will be far higher
between small flats and large houses on big stands.
Council proposes to spend about $4,6 billion next year,
with almost $1,7 billion going on the capital budget and $2,9 billion on the
revenue budget.
Rates, supplementary charges and property taxes will be the
largest contributors to council income, having to provide $1,9 billion, and
service charges much of the rest but with $400 million for capital programmes
coming from grants and loans.
The rest of the capital budget has to come from the rates
account and from the capital portion of each of the service charges.
Council is eager to see the Zinara grant rise to something
a lot closer to what Harare residents pay out each year in licence fees, but as
an interim measure, until it can get this full grant, proposes to levy a 20
percent development levy on all new developments to pay for the new roads that
are required.
Water charges remain stepped for households and are rising
around four-fold from the levels already set in the October supplementary
budget.
In high-density suburbs, the first 5 cubic metres of water
will cost $20 a cubic metre, so the basic 5 000 litres, the minimum a family
needs for a safe and secure healthy life, will cost $100.
The next 5 cubic metres will cost $24 a cubic metre, the
next 10 cubic metres $27 a cubic metre and everything above 20 cubic metres $35
a cubic metre.
Charges are higher in low-density suburbs where the first 5
cubic metres will cost $25 a cubic metre, the next 5 cubic metres will cost $29
a cubic metre, the next 10 cubic metres $33 a cubic metre and everything above
20 cubic metres will cost $41 a cubic metre.
Industrial and commercial water users will see their bills
rise almost five times to $20 a cubic metre.
Sewer charges rise to $41 a toilet in high-density areas
and $91 a toilet in low-density areas.
While the city plans to use cost-recovery models to fund
most services, health will remain an exception. Consultation fees will remain the same as now, but a few
treatment services will rise.
A caesarean will more than triple to $1 837. Detailed proposals for property taxes were not included in
the budget statement. Presenting the city’s 2020 $4,6 billion budget, Finance and
Development committee chairperson
Councillor Luckson Mukunguma said the budget formulation
process took into account the prevailing economic condition.
He said the budget sought to fulfil council’s 2019 to 2025
goals, particularly to provide potable water and prevent environmental
pollution through effective waste management as well as the rehabilitation of
roads infrastructure.
“Honourable councillors, the tariff regime has changed
largely due to the existing macro-economic environment which is hyper
inflationary,” said Clr Mukunguma.
This budget, said Clr Mukunguma, was predicated on Central
Government’s thrust of Vision 2030.
“This budget, which is guided by our strategic plan, also
takes care of the intention of the Government as espoused in the Transitional
Stabilisation Programme (TSP) that is to achieve an upper middle class income
economy by 2030,” he said.
Clr Mukunguma said the prevailing macro-economic
environment posed serious challenges for the city which had to battle to remain
afloat.
“We are sympathetic to the residents of Harare who are
facing many challenges because of the economic conditions prevailing in the country,”
he said.
“Although we have tried to reasonably adjust our tariffs
and fees, we hope the macro-economic adjustment will not force us to readjust
our fees as we try to provide services in a constrained fiscal space. This
budget is therefore, meant to give our people new hope and transform Harare
into a smart city.”
Council intends to take stronger action to collect all
charges due, ranging from councillors going door-to-door as suggested by Clr
Mukunguma, discounts for prompt payers of industrial water charges to
blacklisting delinquent customers, thus reducing their credit worthiness with
lenders.
Harare Residents Trust programmes officer Mr Happiness
Mukambachaza said the way tariffs have been increased will likely not produce
the desired results.
“We appreciate that council’s budget this time tried to
address major issues. However, we are concerned about the manner in which basic
services have been increased.
“Water is a basic need and given the prevailing economic
conditions, we wonder how they expect residents to pay such huge amounts when
their salaries have remained stagnant. If people are already failing to pay the
current charges, what more about the new ones, council has to think twice,” he
said.
He accused council of coming up with a budget that does not
reflect what residents proposed during pre-budget consultations.
“We are shocked by the figures proposed by council. They
consulted us as residents sometime in July and so many things have happened and
it is no longer the same,” said Mr Mukambachaza.
Zimbabwe Combined Residents Association president Mr
McStephen Nyabvure said the budget failed to consider the ratepayers’ plight.
“Ratepayers are burdened by the economy situation and even
council itself is saying that it is being owed almost one billion by
ratepayers.
“This is a reflection that there will not be any miracle
that will make residents settle their debts when the charges have been
increased. The increase under this economy is not justifiable at all.” Herald
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