Indigent policy to help struggling city residents

By Nadia Samie
6 October 2006

Cape Town residents who have a total household income of less than R1640 per month and who do not own more than one property qualify for the city’s indigent policy, no matter how big their debt is.

The policy is aimed at ensuring that disadvantaged people or very low income earners in the city can continue to receive services. Resident’s who qualify for the indigent policy can go to any customer care office in the city to arrange that they not be charged interest on arrears or face debt collection action, provided that they pay their current account together with an agreed amount towards their arrears on rates and service fees.

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. Details of people over the age of 18 years living on the property are also needed, including their ID numbers and source of income, if any.

In a statement, Cape Town Mayor Helen Zille says that while the city is obliged in terms of the Municipal Systems Act to collect rates and service fees, and to implement credit control and debt collection, she does not want people who are experiencing financial difficulties to feel that they have nowhere to turn.

Cape Town has rates and services arrears of R3.5 billion.

In terms of the indigent policy, owners of all properties that have a municipal valuation of R50 000 or less are exempt from paying property tax.

Also in terms of the indigent policy:

The city also exempt owners of properties that have a municipal valuation of R50 000 or less from paying property rates

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

Discounts and free services are offered 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

All informal residential debtors will receive a free basic refuse removal service

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 below:

Monthly household income: 0 to 1500 (rebate: 88%)

Monthly household income: 1501 to 1650 (rebate: 82%)

Monthly household income: 1651 to 1750 (rebate: 70%)

Monthly household income: 1751 to 1850 (rebate: 59%)

Monthly household income: 1851 to 2100 (rebate: 47%)

Monthly household income: 2101 to 2300 (rebate: 35%)

Monthly household income: 2301 to 2600 (rebate: 23%)

Monthly household income: 2601 to 3000 (rebate: 11%)

To find out more how you can take advantage of the city’s Indigent Policy, call the council’s customer care number on 0860 103 089. Alternatively, call the civic centre exchange on 400 1111, to work out an affordable way to pay off your rates and services debt. Call 400 2736 for your nearest customer care centre.