All the taxes generated by the businesses and individuals within the municipality are paid directly to central government or its agencies. Council does not have a share in this wealth though a number of discussions have been held with the government in this regard. To cater for the funding of the municipality, the government promulgated the Rating Act of 1995. The rates are property tax imposed on all immovable property (plots), farms, lots, houses, factories, shops, etc, within the municipality. In the determination of rates, Council is partly guided by the town planning scheme which demarcates the property, commercial, industrial, public use etc and each zone is rated differently.

Council is financed about 80 percent from rates and the other 20 percent is catered for by user fees such as refuse collection, bills, vendors, public conveniences and other service charges. In addition to this, the government also pays subventions to Council. There is no formula on the subventions but how much is paid depends on the goodwill of the Ministry of Housing and Urban Development. The City Treasury Department is the municipal council's backbone and nerve centre. It manages the financial business of Council. As part of its core objectives, this department has to address issues that relate to the payment / collection of rates

WHAT ARE RATES?

Rates are forms of property tax levied on all ratable property, land and buildings within the urban boundary. The property owner or any person acting on the owner's behalf pays rates at Council's rates office. The collection and administration of rates is regulated by the Rating Act of 1995. Rates vary according to the uses of land. Land within the urban precinct is designated into zones such as;