5 December 2018
Thupeyo Muleya in BEITBRIDGE
Beitbridge Municipality has improved on its revenue collection capacity between 2017 and 2018 which saw them collecting at least 79 percent of its projected income this year, an official has said.
The local authority’s chairperson for Finance and Staffing Committee Councillor Granger Nyoni told stakeholders during the 2019 annual budget presentation meeting yesterday that the performance of the Revenue Budget continued to derail their service delivery plans.
“While the total budgeted income as at 30 October 2018 is $5,1million, the council has billed a total of $4,5million, if all money due to Council had been collected, the revenue budget performance would have been 89 percent.
“However, only $4,0million was received which represents 79 percent of the expected revenue,” he said.
“This is an increase in collection efficiency and value terms as compared to the same period in 2017 where $3,1m was collected representing 60 percent collection efficiency.
“It is important to note that the 2018 financial year has been marred with price volatility on expenditure, hence the revenue that was received could not sustain the budgeted expenditure.
“Further, it is sad to note that most projects cannot be completed in 2018 as the macro economy has been aggressively adverse”.
Cllr Nyoni added that billed amounts for rates and service charges were pegged at $930 797 though they had received only $460 872 culminating into a 49.51 percent collection rate as at 30 September 2018.
He said the revenue collection had increased owing to a number of strategies including continued engagements between the local authority and its rate payers.
Cllr Nyoni said to further improve on issues of corporate governance and financial discipline, employee costs as at 30 September 2018 stood at 29,55 percent of actual expenditure.
“This is a significant improvement compared to the same period in 2017 where it was 30,97 percent and 37 percent in 2016.
The Municipality will continue balancing employee costs and service delivery.”
Cllr Nyoni said the budget had been drafted under the premise of the Smart Cities recommended Programme Based Budgeting (PBB).