​The City of Cape Town has maintained a 12-month moving average payment ratio of over 95% for rates and services over the last year. For the period ended 30 April 2017, the collection ratio was 95,2%. This is a great achievement for a South African metro.

The City’s collection ratio has also been an area of focus which has yielded results and the City’s current billings are over R2,4 billion per month.

‘We are proud that we’ve managed to maintain such a high collection rate. This shows that we are committed to sound financial management and good governance. We will continue to instil a culture of payment across our city and we thank all those customers who are making a positive contribution to our city by settling their accounts.

‘However, debt management actions are being intensified, especially against those who are able to pay but choose not to do so and also against the frequent defaulters.

‘The bottom line is that we need everyone to contribute their fair share so that we can become an even more successful metro. Those who are in financial difficulties must approach us. Hoping that the debt will go away or ignoring the problem is not the answer, especially as there is help on offer,’ said the City’s Mayoral Committee Member for Finance, Councillor Johan van der Merwe.

The City is also continuing a new SMS and email campaign reminding those to pay by the pending due date if they have not yet done so and encouraging those in arrears to pay up if they can or to approach the City to discuss payment options.

The City has already sent 55 000 SMS notices for 66 000 accounts payable. The total debts linked to these accounts as at 12 June 2017 were R362 million. Total payments received though this initiative amount to R162 million. 

Those who have not paid or have not made arrangements to settle their debts will have their water restricted, electricity supplies disconnected, or will have arrears collected via any prepaid electricity purchases.

There are debtors who default across the metro and in every suburb of Cape Town. For years the City has intervened to establish a culture of payment and has set progressive debt management policies and indigent relief in action.

‘As a caring city, however, we also make allowance for residents who are unable to pay for basic services to make representation to the City for relief, and for those who are struggling to pay their municipal accounts to come to our municipal offices to enter into a debt arrangement,’ said Councillor Van der Merwe.

Furthermore, the City’s Credit Control and Debt Collection Policy makes allowance for residents who are indigent or senior citizens to approach the City and access the range of benefits based on their total household income.

All those who are deemed indigent in terms of the abovementioned policy have the benefit of a once-off debt write-off on condition that they agree to the installation of a water management device and an electricity prepayment meter.

A water management device allows for a daily water allocation that is in line with what the resident can afford and therefore reduces the scope for more unsecured debt to accumulate. Any leaks on the property are fixed free of charge as part of this incentive, which also aids water conservation.

If any resident’s water is restricted, electricity supply disconnected, prepaid electricity purchases limited, or legal action instituted, then it is clear that they have ignored all of the notices that have been sent and have not made any attempt to obtain assistance from the City.

Residents are encouraged to visit their nearest municipal office for advice and guidance as soon as possible should they have any queries regarding their arrears.

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