City proposes billing in forex

THE Masvingo City Council is proposing to bill residents in foreign currency in order
to retain the value of revenue owed as it forecasts a US$17 million budget of which
US$15 million will be generated internally while external funds will contribute the
remaining US$2 million.
This was revealed during a budget consultation meeting held at Civic Centre recently
where Finance Director, Danister Jori, said residents would be expected to pay 40
percent of the monthly bills in foreign currency.
“Council projects to raise about US$15 million in the 2024 financial year. The
revenue shall be collected mainly in ZWL$ at the prevailing rates in line with
Government policy. We propose that billing of council revenue to be done in United
States Dollars to preserve the money that may be lying in debtors,” he said.
Jori said the local authority will convert the over RTGS 12 billion owed to United
States dollars at the end of this year at the prevailing rate so that they preserve the
value of their money.
“Council shall, however, continue to request stakeholders, residents and ratepayers
to pay for some services in foreign currency to support service delivery.
“It is important to note that water treatment chemicals, fuel, gas, motor vehicles,
pumping equipment and spares are now being sold exclusively in foreign currency.
“The economy is now trading significantly in United States Dollars and for council to
be able to continue providing and improving service delivery, there is need for
guaranteed foreign currency receipts.
“We are, therefore, proposing that for monthly bills to be raised beginning 1 January
2024, 40 percent be paid in foreign currency and the balance 60 percent be paid in
local currency at the prevailing bank rate on the date of payment.”
Masvingo United Residents’ and Ratepayers’ Association spokesperson, Godfrey
Mtimba, said the city fathers should just allow residents to choose the currency they
afford as most of them don’t have access to foreign currency.
“We are concerned about the move because the majority of our members are civil
servants. They won’t be able to afford that 40 percent.

“Council must just allow people to use the currency that they afford based on
stipulation of the Government policy on multi-currency regime.
“The move will disadvantage others who cannot afford, some residents earn in local
currency, which means they will be forced to go to the parallel market to buy US$ to
pay their bills which is not fair,” he said.

The local authority is also working on aligning its revenue sources by increasing
rates and unit taxes through the implementation of the new valuation roll.
“In the 2023 financial year, property rates accounted for 8 percent of the total
budgeted revenue. This is a significant deviation from the generally accepted
international norm where property tax should contribute a minimum of 30 percent of
municipal revenue in any financial year.
“This budget will take-on from the prior year efforts to gradually align revenue
sources by increasing the rates and unit tax factors and implementing the new
valuation roll which is now complete and will go for consultation this month,” reads
part of the 2024 budget consultation report.