By Daniel Ital.
Harare, Zimbabwe – (News of The South) The Harare CIty Council (HCC) has increased its tariffs which will likely see most homesteads parting away with an average of $225 (US$15) or $700 (US$47) per month in utility bills depending on the location. This was revealed at the HCC’s proposed budget yesterday evening.
Rates, supplementary charges and property taxes are set to be the largest contributors to council income, having to provide $1.9 billion (US$127 million).
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.
Finance and Development committee chairperson, Luckson Mukunguma said the council’s goals were particularly to provide potable water and prevent environmental pollution through effective waste management as well as the rehabilitation of roads and infrastructure.
“The tariff regime has changed largely due to the existing macro-economic environment which is hyper-inflationary.
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 which is to achieve an upper middle class income economy by 2030.
We are sympathetic to the residents of Harare who are facing many challenges because of the economic conditions prevailing in the country.
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,” said Mukunguma.
The HCC said it intends to take stronger action to collect all charges due, which will aid in reducing their credit worthiness with lenders.
The new tariffs are expected to commence next year in January after the minister of Finance has approved the budget.
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