The City of Cape Town has created a special policy to assist struggling households in paying their rates and service charges.

The policy has been designed to give a 100% rates rebate to property owners who meet predetermined criteria. Provided their property does not exceed R199,000 (in municipal value), household owners receive an automatic grant of R30,00 towards the payment of their water and other municipal accounts (except electricity). If the property is valued at over R199,000, its owners will need to qualify as indigent to receive this benefit. Other policy benefits include free refuse or subsidised waste collection for all residential properties valued at R300 000 or less and an once-off arrears write off (for indigent people who are over 60 years of age, and in receipt of a disability pension/grant or an occupant of a child headed household).

To qualify for the policy’s benefits, property owners who think they might be eligible need to register as indigent. The City uses the following criteria to evaluate applicants:

Proof of gross income: This must not exceed R2,880 per household per month, irrespective of the municipal valuation of the property

Ownership status: The applicant must be the registered owner of the property or an occupant of a child headed household where the property in which they reside is registered in the name of a deceased parent/s. In addition, the applicant must not be the registered owner of more than one property

Occupancy status: The applicant must be a full time occupant of the property, and the property must be used for residential purposes only

Registration can be undertaken at any City of Cape Town office, or by calling 0860 103 089 for further information.

Once registered, indigent people will need to re-register each year.

The relief measures form part of the City’s endeavours to provide relief for economically vulnerable residents. These include:

• A 100% rates rebate for senior citizens and disabled people who meet the criteria for a rates rebate and indigence.
• 6,000 litres of water free to all households each month
• 50 kWh free electricity for households that consume less than 400kWh per month on average
• The first R88 000 of all residential properties are exempt from property rates
• Special rates, refuse removal, water and sanitation rebates to accredited shelters for homeless people
• Upper limit for rates rebates to the disabled and elderly up to R7,000 per month from all sources
• Retirement schemes and life rights schemes now pay only the residential rate.

The City has rates and services arrears of R2,753 billion as at 30 September 2008, and manages this in accordance with its Credit Control and Debt Collection Policy. This has in turn been designed around the Indigent Relief benefits, so that people who are struggling financially can continue to receive City services (refuse, sewerage, water) during tough economic times. Indigent homeowners who are indebted to the City will not face debt collection action or pay interest, but will need to adhere to a repayment schedule.