GWERU City Council (GCC) has resolved to offer a 30 percent discount to ratepayers who settle their bills in foreign currency.
The local authority last year joined other local authorities that are indexing their bills in foreign currency.
The ratepayers are however free to pay their bills in local currerncy using the prevailing bank rate.
Gweru City Council is owed over $4 billion by residents and other ratepayers and it says this is affecting service delivery.
Last year the council attached movable properties of 483 defaulting residents and companies leading to the recovery of about $18 million.
The council is struggling to raise enough forex to buy fuel and pay some service providers demanding forex hence its offering 30 percent discount to encourage residents to pay their bills in forex.
Speaking during a recent full council meeting, Gweru Mayor Councillor Hamutendi Kombayi said the local authority is struggling to buy essentials such as fuel due to a lack of forex.
Cllr Kombayi said there is therefore a need to encourage residents and companies to settle their bills in foreign currency.
“We need to have a promotion that encourages our residents and ratepayers to pay their bills in United States dollars because we are facing challenges in buying fuel using local currency,” he said.
Cllr Kombayi noted that local authorities such as Mutare were running promotions that are encouraging residents to pay their bills in foreign currency.
He said the move has enabled them buy equipment and pay part of their employees’ salaries in forex.
“As GCC we need to be innovative and have our own promotions as well. We need to entice residents and ratepayers to come forward and settle their bills in forex so that we improve service delivery,” said Cllr Kombayi
He also urged the Government to review procurement regulations for local authorities in line with the prevailing economic situation.
Ward 4 Cllr and chairperson of the finance committee Martin Chivhoko said there is a need to be innovative to improve revenue collection.
He said there is a need for council to come up with stragtegies that encourage residents and other ratepayers to pay their bills.
“We should take a leaf from other cities that are running promotions that encourage residents to pay their bills and a 30 percent discount for those paying USD is a good offer. This will boost our revenue collection in forex,” said Cllr Chivhoko.
The acting town clerk Mr Vakai Douglas Chikwekwe advised council that the proposed discount might have legal implications.
He said as management they will consult on the issue.
The chairpersn of Gweru Residents Trust (GRT) Mr Antony Madzivanyika welcomed the proposed discount.
He however said the council should also come up with incentives for residents and ratepayers who were up to date with their bills.
“We need such initiatives that encourage resident and companies to pay their bills. If we all settle our bills council will definitely improve service delivery,” said Mr Madzivanyika. – The Chronicle
