MUTARE– City council has given notice that it is now accepting bill payments in US dollars for its major levies, tariffs and rates for commercial with immediate effects and in the coming month for residential areas.
In a notice to residents and customers, City of Mutare advised the public, its clients and stakeholders that it is accepting payments in US dollars or equivalent in the ZWL local currency at prevailing official (RBZ) rates, due 1st of October.
The only exceptions in this development are parking fees, burial fees and clinic fees which have been raised by between 120% up to 300%, while all commercial and industrial tariffs have been raised by 350% effective 1st August, pending implementation of USD charges on the 1st of October.
Municipality says the transition from the hyperinflation prone local currency is based on public budget consultations it held in July that also approved a supplementary budget for the year.
To entice its stakeholders to pay in the green back council will be offering a 20% discount on all payments made in hard currency USD.
The municipality is facing viability challenges due to the hyper inflationary macro-economic environment while its revenue base has constricted. It receipts about two thirds of its bills (60%) a marked improvement.
Finance director Blessing Chafesuka, has attributed this improvement as gains reaped by council from a rates promotion ‘Maintain up to date Account Promotion’, where ratepayers where rewarded for maintaining an up to date account.
“It (promotion) improved our revenue collection significantly, for 2019 our collections improved from the average of thirty to thirty five per cent and went up to around sixty per cent on average, of the monthly billing,” he said.
In its review from the local currency to USD, it seems City of Mutare has continued with the thrust of rewarding payment of bills, this time offering a significant discounts for forex cash payments.
“The City of Mutare wishes to advise members of the public, all its clients and stakeholders that it is now accepting payments in the form of USD in line with SI 85 of 2020 and also as agreed in the Supplementary Budget consultations which were done in July 2020.
“With immediate effect all miscellaneous tariffs are now based ion USD but can be paid in ZWL currency at the prevailing official RBZ.
“Until 1st of October no changes will be made to all residential tariffs.
“Water will cost US$0,37 per cubic metres first band, rates will maintain the 2019 valuation roll figures as it is still valid and was done in US$ and the rest of the tariffs will be rebased to January 2020 budget in USD.
“Council is now offering a 20% discount on all payments made in hard currency USD,” read part of the notice.
However a residents’ trust describes this move as insensitive on the part of City fathers, as residents have lost livelihoods due to the Corona virus imposed lockdown.
Mutare Residents and Ratepayers Trust MURRA programmes director David Mutambirwa said council should be considerate of the severe impacts of hyperinflation on residents that rely on informal trade.
He said it was ironical that council would makes such a move when even its employees and civil servants have no access to foreign currency as they are paid in local currency.
“The city of Mutare management and councilors are being insensitive to the plight of the residents and ratepayers amidst the worsening economic situation, unemployment and Covid-19 lock down which robbed not their business but their livelihoods.
“Most of the people including civil servants, pensioners, and city council employees don’t have access to foreign currency,” said Mutambirwa.
