Improving Municipal Billing System and Revenue Generating Strategy : Chivi Rural District Council Case Study
Keywords:Municipal billing, revenue generating strategy, Government revenue, Service delivery
Municipalities, in general, experience difficulties in own revenue generation. However, this problem is most severe among rural district councils as they tend to have relatively smaller revenue bases, a culture of non-payment on the part of ratepayers, poor service delivery, inefficient billing systems, poor planning and poor debtor’s management. As a result, rural district councils in Zimbabwe including the Chivi Rural District Council (CRDC) are facing self-sustainability concerns due to financial difficulties. There is overwhelming evidence in research to support the notion that properly planned billing systems have a positive impact on revenue generation among municipalities. On the other hand, poorly planned billing systemswill lead to financial difficulties. A case study approach is designed. Secondary data wasgathered in addition to primary data was collected through questionnaires withCRDC employees and ratepayers. Secondary data was collected through existing CRDC and government reports and documents, and the relevant Acts of Parliament. This found that customers had neutral perceptions of the service quality subconstructs of assurance, reliability, empathy and tangiblesat the CRDC. Further, customers had merely high neutrality almost negative perception of the service quality construct of responsiveness. A statistically significant neutral relationship was found between assurance, reliability, responsiveness, empathy, and tangibles with overall customer satisfaction. The reliability had the highest influence on customer satisfaction, followed by tangibles, responsiveness, empathy, and assurance, respectively. In practical perspective, the study recommends better ways of revenue collection to the municipality. Further the study adds to the debate in literature in Pecking Order Theory.
Adejoh, E., & Mr Sule, J. G. (2013). Revenue Generation: It’s Impact on Government Developmental Effort (A Study of Selected Local Council in Kogi East Senatorial District). Global Journal of Management and Business Research Administration and Management, 13(4).
Akaranga, S. I., & Makau, B. K. (2016). Ethical Considerations and their Applications to Research: A Case of the University of Nairobi. Journal of educational policy and entrepreneurial research, 3(12), 1-9.
Al-Mwalla, M. (2012). The Impact of Working Capital Management Policies on Firm Profitability and Value: The Case of Jordan International Research Journal of Finance and Economics, 85, 1-9. s
Atrill, P., McLaney, E., & Harvey, D. (2014). Accounting: An Introduction, 6/E (Vol. 6). Pearson Higher Education AU.
Babbie, E., & Mouton, J. (2006). The practice of social research (10th ed.). Cape Town: Oxford University Press.
Bahl, R., Smoke, P., & Solomon, D. (2003). Restructuring Local Government Finance in Developing Countries: Lessons from South Africa (R. Bahl & P. Smoke Eds.). Cheltenham, UK: Edward Elgar.
Bryman, A., Bell, E., Hirschsohn, P., Santos, A. D., Toit, J., Wagner, C., Aardt, I., & Masenge,
A. (2016). Research Methodology. Oxford University Press.
Chakaipa, S. (2010). Local Government institutions and elections In D. V. J, S. N, & M. N (Eds.), Local government reform in Zimbabwe: A policy dialogue (pp. 31-70). Cape Town: Community Law Centre.
Chatiza, K., & Chakaipa, S. (2010). Can local government steer socio-economic transformation in Zimbabwe? Local government reform in Zimbabwe, 1.
Chen, L., Jung, C., & Chen, S. (2011). How the Pecking-Order Theory Explain Capital Structure. Journal of International Management Studies, 6(2).
Chigwata, T. (2016). The role of traditional leaders in Zimbabwe: are they still relevant? Law, democracy & development, 20(1), 69-90.
Chigwata, T. C. (2017). Fiscal Decentralization: Constraints to Revenue-Raising by Local Government in Zimbabwe: Handbook of Research on Sub-National Governance and Development.
Chigwata, T. C., & De Visser, J. (2018). Local government in the 2013 constitution of Zimbabwe: Defining the boundaries of local autonomy. Hague Journal on the Rule of Law, 10(1), 165-185.
Chivi Rural District Council. (2019, December). 2019 Annual Report. CRDC Finance Department.
Coutinho, B. (2010). Sources of local government financing. In J. d. Visser, N. Steytler, & N. Machingauta (Eds.), Local Government Reform in Zimbabwe: A policy dialogue. Cape Town: Creda Communications.
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset (Vol. 666). John Wiley & Sons.
de Visser, J., Steytler, N., & Machingauta, N. (2010). Local government reform in Zimbabwe: A policy dialogue. Community Law Centre, University Western Cape.
Eaton, K., & Schroeder, L. (2010). Measuring decentralisation. In E. K, C. E, & S. P (Eds.), Making decentralisation work: democracy, development and security (pp. 167-190): Lynne Reiner Publishers, Boulder.
Education Training Unit (2021). Municipal Service Delivery. [Online]. Available at: https://www.etu.org.za/toolbox/docs/localgov/munservice.html.
Education Training Unit. (2021). Municipal Service Delivery.
Gamze, V., Ahmet, G. S and Emin, H. C (2012). “Effects of Working Capital Management on Firm’s Performance: Evidence from Turkey” International Journal of Economics and Financial Issues, 2 (4): 488-495.
Government of Zimbabwe. (2004). Revitalisation of Local Authorities.
Gul, S., Khan, M. B., Raheman, S. U., Khan, M. T., Khan, M., Khan, W (2013), “Working Capital Management and Performance of SME Sector.” European Journal of Business and Management, 5 (1): 60 – 68
Gumbo, T. (2013). On ideology change and spatial and structural linkages between formal and informal economic sectors in Zimbabwean cities (1981-2010) (Doctoral dissertation, Stellenbosch: Stellenbosch University).
Hague Journal on the Rule of Law, 10(1), 165-185.
Howorth, C., and Westhead, P. (2003). The focus of working capital management in UK small firms. Management accounting research, 14(2), 94-111.
Javed, N., Saqib, E., Razzaq, A., & Saeed, U. (2018). 3.16 - Revamping Urban Immovable Property Tax System by Using GIS and MIS: A Case Study of Reforming Urban Taxation Systems Using Spatial Tools and Technology, Comprehensive Geographic Information Systems,, 272-296.
Kakeeto, F., Timbirimu, M., Kiizah, P., & Olutayo, K. O. (2016). Accounts Receivable Management and Organizational Profitability as a Function of Employee Perception in Gumutindo Coffee Cooperative Enterprise Limited (GCCE), Mbale District Uganda.
Kwame, N. (2014). Working Capital Management Practices of Small and Medium Enterprises in the Western Region. A Survey of Selected SMEs in the Sekondi- Takoradi Metropolis.
Madishetti, S and Kibona, D (2013); “Impact of Receivables and Payables Management on the Profitability of SMEs in Tanzania”. Journal of Economics and Management, 2 (3)
Mafunisa, M. J. C. (2019). Comparative Analysis of Municipal Billing System on revenue collection in SA Municipalities. CIGFARO Journal (Chartered Institute of Government Finance Audit and Risk Officers), 20(2).
Makumbe, J. (1998). Democracy and Development in Zimbabwe: Constraints on Decentralization SAPES. Harare.
Mandondo, A. (2000). Situating Zimbabwe's natural resource governance systems in history.
Manyaka, R. K. (2014). Collection of municipal own revenue in South Africa : challenges and prospects. Journal of Public Administration, 49(1).
Martinez-Sola, C., García-Teruel, P. J., & Martínez-Solano, P. (2014). Trade credit and SME profitability. Small Business Economics, 42(3), 561-577
Masoud, D. M., and Mbega, S. (2013); An Exploratory Study of SMES’ Working Capital Management Practices in Dar es Salaam Tanzania.
Mazibuko, G. P. (2013). The Impact of the municipal billing system on revenue collection in selected South African cities. University of Pretoria, Pretoria.
Mbula, K. J., Memba, S. F., & Njeru, A. (2016). Effect of Accounts Receivable on Financial Performance of Firms Funded by Government Venture Capital in Kenya. Journal of Economics and Finance, 7(1), 62-69.
Mbula, K. J., Memba, S. F., and Njeru, A (2016) “Effect of Accounts Receivable on Financial Performance of Firms Funded by Government Venture Capital in Kenya”. Journal of Economics and Finance, 7 (1): 62-69.
Mushamba, S. (2010). The powers and functions of local government authorities’. In De Visser J, S. N, & M. N (Eds.), Local government reform in Zimbabwe: A policy dialogue (pp. 101- 138). Cape Town: Community Law Centre: Bellville
Musingafi, M. (2014). Local governance and service delivery in Zimbabwean local authorities:
The case of Harare and Masvingo Urban Municipalities. International Journal of Public Policy and Administration Research, 1(3), 94-107.
Muzamani, J.T. (2000). Essentials of financial management, University of Zimbabwe publications.
Mwalla, M (2012), The Impact of Working Capital Management Policies on Firm Profitability and Value: The Case of Jordan International Research Journal of Finance, 85: 1-9
Olouch, J. O (2016), “The Impact of Cash Management Practices on Performance of SMEs: A Survey of SMEs in Eldoret Central Business District.” Journal of Economics & Finance. 7 (6): 01-07.
Oyugi, W. O. (2000). Decentralization for good governance and development: concepts and issues. Regional Development Dialogue, 21(1), 3-25.
Otaibi, N. M., & Yasmeen, K. (2014). An overview of customer loyalty, perceived service quality and customer satisfaction: Brief on Saudi grocery stores. Journal of Entrepreneurship and Business Innovation, 1(1), 79-122.
Panara, C. (2013). Conclusion: the constitution of local self-government to constitutionalism in the member states and in the EU multi-layered system of governance. In C.
Panara & M. Varney (Eds.), Local government in Europe: the ‘fourth level’ in the EU multi- layered system of governance (pp. 387-413). London: Routledge.
Pedzisai, C., and Tsvere, M. (2013). Debtors Management in Gokwe East Cluster Day Secondary Schools, Gokwe, Zimbabwe. Journal of Education and Practice, 4(23), 104-109.
Rahi, S. (2017). Research Design and Methods: A Systematic Review of Research Paradigms, Sampling Issues and Instruments Development. International Journal of Economics & Management Sciences. Volume 6: Issue 2. Pp2-5
Rahman, M. S. (2020). The advantages and disadvantages of using qualitative and quantitativeapproaches and methods in language “testing and assessment” research: A literature review.
Randall, H. (2000). Advanced level Accounting, (2nd edition), D.P., Publications, Great Britain.
Richard, E. M., and Mori, N. (2018). Effect of Debtors on Performance of Small and Medium Enterprises. ORSEA JOURNAL, 8(1).
Ross, L., (2013). Creating good public policy to support high growth SMEs: Glasgow, Scotland, UK: Colin Mason Hunter Centre for Entrepreneurship University of Strahclyde. Rural District Council Act [Chapter 29:17].
Saunders, M., Lewis, P., & Thornhill, A. (2011). Research Methods for Business 4th edition.
Taskinsoy, J. (2019). The Transition from Barter Trade to Impediments of the Dollar System: One Natione Currency, One Monopoly. One Currency, One Monopoly (March 6, 2019).
Tavakol, M., & Dennik, R. (2011). Making sense of Cronbach's alpha. International Journal of Medical Education, 2, 53-55.
The Tax Policy Center. (2020). Tax Policy Center Briefing Book : A citizen's guide to the fascinating elements of the federal tax system. USA: Urban-Brookings Tax Policy Center.
Urban District Council Act [Chapter 29:13].
USAID. (2005). A Guide to Enhancing Municipal Revenue. Municipal Infrastructure Investment Unit, USAID.
UKEssays. (November 2018). The Five Dimensions of Service Quality. Retrieved from https://www.ukessays.com/essays/marketing/the-five-dimensions-of-service-quality- measured-marketing-essay.php?vref=1
Yin, R. (2018). Case Study Research: Design and Methods 2nd edition. London: Sage
Copyright (c) 2023 Bright MUPEDZI, Magret OLAREWAJU, Masibulele PHESA
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.