Defaulting residents and other ratepayers owe Mutare City over $50 million, a development which is crippling service delivery in the city.
Mutare City Council public relations officer Mr Spren Mutiwi said they were owed about $53 million from figures that emerged from budget consultations they were undertaking since last month.
Mr Mutiwi said council had made efforts to engage ratepayers and residents to settle their outstanding debts.
"We have not taken punitive measures because we believe in engagement," he said.
Mr Mutiwi said they had introduced payment plan schemes and flexed on methods of payment, taking into consideration the prevailing economic environment.
"The window period for making payment plans is still open and we still encourage residents and corporates to make flexible payment plans to retire their debts," he said.
"We are mindful of the prevailing economic situation."
Council reminded residents that service provision came at a cost, which called for commitment from them to settle their debts.
"When it comes to service delivery, people should know that there is a cost attached to it and should make a commitment to play their part in ensuring uninterrupted service supply," said Mr Mutiwi.
Council also hinted that it would engage services of debt collectors in the event that the engagement plan failed to yield positive results.
Mr Mutiwi said they were in the process of constructing a revenue collection offices where payments would be made.
He said the offices will be set in Dangamvura and Fern Valley.
"We are in the process of constructing a revenue offices to facilitate easy access when people need to make payments," Mr Mutiwi said.
"We believe such measures will result in increased revenue collection efficiency.
"The offices will be at Dangamvura Complex and Fern Valley."
Mutare City Council was recently voted the first runner-up in the Best Exhibition Stand during the Local Government Investment Forum held in Bulawayo.
Thirty two local authorities participated at the event.