Kwekwe considers tariff increase to cushion against falling bond note

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By Kwekwe Correspondent

CASH-STRAPPED Kwekwe City Council is considering producing a supplementary budget and a tariff increase to support its $26,9 million budget which was submitted to the Local Government Ministry for this year.

As the country’s bond note currency continues to lose value compared to the more stable US dollar, council maintains the yet to be approved budget has been devalued with the Midlands city now selling its treated water at a loss.

Addressing a full council meeting this past week, Kwekwe City Finance Director Rejoice Maweni revealed council was considering producing a supplementary budget.

According to the new tariff schedule, Kwekwe city is proposing to increase refuse collection charges from the current $2 to $3 for those in the high density suburbs, while those in the low density suburbs are expected to part with $5, up from the initial $2.

Furthermore, the council has been proposing an over 400% increase for the same charges to industries from the current $20 for weekly collections to $45 and $60 for daily collections.

Maweni said although the proposed budget is yet to be approved, the new tariff charge sheet which they proposed to the parent ministry is already inadequate.

“We are producing water at a loss. We are even failing to procure water treatment chemicals. Looking at the scenario, what this simply means is that we will have to produce a supplementary budget,” Maweni said.

Kwekwe city also supplies nearby Redcliff municipality with water.

Redcliff is owes Kwekwe 43 million in arrears.