A massive retrenchment exercise looms at the Chinhoyi Municipality following revelations that the authority intends to reduce staff levels by over 50 percent.

The municipality says the move has been necessitated by the need to maintain the 30-70 percent ratio for salaries and service delivery respectively.

The local authority’s salary bill hovers around $380 000 monthly against monthly revenue inflows of around $300 000.

Chinhoyi Chamber Secretary, Mr Abel Gotora told a strategic plan review meeting in Kadoma that the current financial situation is untenable and moves are being made to borrow to fund the retrenchment exercise once the parent local government ministry approves the proposal to lay off some workers.

Meanwhile, Chinhoyi Town Clerk, Mr Maxwell Kaitano has expressed hope that next year’s budget will perform favourably as was the case with the 2017 one which saw council managing to meet part of its obligations to creditors.

According to the municipality, regular debt clearance promotions helped in improving revenue inflows.