The Mt Pleasant and Mabelreign 2021 pre-budget virtual meetings saw residents inputting their submissions last Wednesday in their community groups under the guardians of their District Officers (DO), the Mt Pleasant meeting was presided by the DO Mrs Mverechena, and the Mabelreign one by Mr Takawira Maganga.
Residents in these two wards demanded a final solution to water crisis and replacement of aged underground pipes to minimize leaks.
Topping the submissions were water and sanitation, roads and street lighting issues.
Mabelreign residents also suggested that the Council should set aside funds for 2021 budget to fund a state of the Art Community Centre with Community Hall (Ground secured in Westlea along Kirkman), construction of public toilets at Sunridge Shops, construction of Hardware Market at Mabelreign Shops, Upgrading and modernization of Mabelreign City Library and Sharks Swimming Pool.
Residents appealed for speed humps along Tynwald road and traffic lights at corner Tynwald road and Bulawayo road.
In their submissions residents also said they now need a Council clinic in Westlea (ground already secured), a school, Police posts and Clinic sites in Madokero, Community Borehole at Mukushi compound behind Sanganai Inn, the residents also demanded their own refuse collection truck and water bowser dedicated to ward 16.
Mt Pleasant residents urged the City to consider uncompleted projects in the previous budget, they also put more emphasis on water, sanitation and roads rehabilitation. The residents also said that Street lighting needs attention as the City has become a dark city and crimes had become the order of the day. The residents singled out the street lights on The Chase road saying they need attention for security reasons.
The Harare City Council’s Mrs Musere from the Finance department noted that Council is legally mandated to consult residents in preparation of upcoming budgets. The City is expected to go back to the residents and consult them on the key areas that they feel the City needs to take on board. It is also very important however that the City is open about the current budget performance so as to map a way forward.
“The City had a ZWL$4.5 billion budget, split into ZWL$2.9 revenue budget and ZWL$1.6 billion capital budget, and the strategizing for the budget was zeroed on water and sanitation and hygiene, the wash program.
“This constituted 81 percent of the capital budget and 75 percent of the revenue budget. The funding structure of the capital budget is such that 91 percent is funded by own revenue generated by the City, and a mere 9 percent by other sources that is the City’s grants, loans, Public Private Partnerships (PPP), and so on. What this simply means is if the City fails to collect revenue no meaningful outlay on capital works may take place,” she said.
She added that the economic hyperinflation environment had a plethora of issues, the exchange rate, the moratorium of rentals, the Covid-19, these are some of the issues which impacted negatively on the 2020 budget. Because of this the City experienced disequilibrium in terms of rising expenses, rising creditors, rising debtors.
“The City collected ZWL$958 million, against a budgetary proportion of ZWL$2.67 billion giving a funding deficit of ZWL$1.72 billion these inflows were just enough to keep the City afloat, that’s why the expenditure was mainly directed at general expenses, goods and services, salaries which are mainly contractual obligations and can’t be put aside. The major cost drivers of general expenses are chemical ZWL$460 million, Zesa ZWL$264 million, Fuel ZWL$40 million.
“These drivers especially making special reference to water treatment chemicals are indexed to the United States Dollar (USD), and whenever the USD was going up, the charge were also going up, so the City would find itself existing in a position to pay for chemicals as this driver chewed 50 percent of the general expenses,” she said.
“From the 31st of July the debtors were sitting at ZWL $1.6 billion, mainly driven by industry, commercial and residential. Industry had ZWL$122, commercial ZWL$695, and domestic ZWL$677 million, this is a very huge debtors book, which had a huge implications on the City.
“The City’s inflows did not add up to what was projected and the City was unable to take up capital works in the budget.
“However some capital works were done, mainly funded through inter-governmental fiscal transfers, a ZWL$59 million was utilized from inter-governmental fiscal transfer to undertake water and sanitation issues. This included pipe replacements, Ruzivo crossing stream, and repairs at Morton Jaffrey Water Works,” added Musere.
The City is appealing to residents to come together and map a way forward on the payment of debts, so that the City will have adequate funds to undertake capital works. As it stands the City has no capacity to go on the open market and borrow because it will not have money to pay back the loans.