City Calls on Debtors to Take Advantage of Indigent Policy

This month I would like to invite all residents who owe council money for rates and services but who are unable to pay their debts to come forward and take advantage of our indigent policy.

While we are obliged in terms of the Municipal Systems Act to collect rates and service fees, and also to implement credit control and debt collection, we do not want people who are experiencing financial difficulties to feel that they have nowhere to turn.

We have an indigent policy which will ensure that disadvantaged people in our city can continue to receive services.

All residents who have a total household income of less than R1640 per month and who do not own more than one property qualify for indigent relief in terms of the policy, no matter how big their debt is.

By approaching any Customer Care Office in Cape Town, qualifying residents with outstanding debts can ensure that they will not face debt collection action and will not be charged any interest on arrears provided that they pay their current account together with an agreed amount towards their arrears.

Residents should bring an ID document, and proof of income in the form of a payslip, confirmation of income from their employer, an affidavit of income or proof of receipt of disability, maintenance grant or pension. Unemployed claimants need to provide an affidavit confirming their status and a declaration that they have no other source of income. The details of the people over the age of 18 years living on the property, including their ID numbers and source of income, if any, also need to be provided.

In terms of the indigent policy, we also exempt all properties that have a municipal valuation of R50 000 or less from paying property rates.

And all properties that have a municipal valuation of R100 000 or less will receive an indigent grant of R20 per month towards the payment of their rates and services account.

We also offer discounts and free services to help disadvantaged residents.

Residential consumers will receive their first 6000 litres of water free each month.

Residential Consumers who use less than 450kWh of electricity in total per month on average will receive the first 50kWh free.

And all informal residential debtors will receive a free basic refuse removal service.

Finally, the council also offers rates rebates for retired and disabled residents.

Residential ratepayers over 60 years of age who are retired, and disabled persons of any age, may on application have their rates rebated as shown in the table appended below.

We want residents to understand that we are here to help. Last month we achieved a record revenue collection of R746, 2m for rates and services alone, which is the highest in a single month since the formation of the Cape Town Unicity.

I would like to thank residents and businesses and other spheres of government for their continued support and co-operation.

Our City has rates and services arrears of R3.5 billion.

You are helping us to turn this situation around so that we can deliver better services for all the people.

Monthly Household Income	Percentage Rebate
0 to 1500	88%
1501 to 1650	82%
1651 to 1750	70%
1751 to 1850	59%
1851 to 2100	47%
2101 to 2300	35%
2301 to 2600	23%
2601 to 3000	11%

---

Issued by:
Directorate: Communication and Marketing
City of Cape Town
Tel: 021 400 2201
Fax: 021 957 0023

Media queries:
Robert Macdonald
Cell: 084 977 9888