The City of Cape Town has a comprehensive suite of financial relief options available for residents. Financial assistance includes a R4,1 billion debt write-off incentive, relief for tenants, some R3,4 billion available for indigent relief and assistance in the form of no interest payment arrangements. The 12 months payment ratio as at 31 December 2021 was 97,73%, which indicates most ratepayers are able to pay their municipal accounts. Those who are unable to pay are encouraged to approach the City for assistance. Service and rates payments primarily pay for the delivery of basic services to residents.

• All residents who are struggling to pay their municipal accounts should please approach the City for assistance as we don’t know each person’s individual circumstances.
• The City’s policies aim to accommodate and assist everyone according to their income level as the City can’t provide blanket relief.
• Almost R2bn in old debt has been written off thus far. This is part of a Council-approved special assistance initiative (the Debt Remission Process May 2021). About R2,1 billion in debt relief for historic debt is still available until 30 June 2022.

‘The City has an excellent payment ratio, which indicates most ratepayers are able to pay their accounts. Without the revenue from rates and services, we would not be able to provide services and we thank the residents who are paying their accounts. However, we are sympathetic to residents who are struggling financially. In Cape Town, the City helps more than 40% of households with free basic services. We also provide no-interest payment arrangements and debt write-off initiatives to all qualifying residents to ensure that we assist our customers, while also encouraging a culture of payment. Residents need to approach us for this assistance. Individual circumstances differ, and the City cannot provide blanket relief.

‘Quite often residents who struggle to pay for rates and services decide on their own to reduce payments or make ad hoc payments and then fall into arrears. They should rather approach the City so their circumstances can be assessed. Residents may qualify for support, or else they can enter into a payment arrangement to avoid debt management and legal actions.

‘The debt write-off incentive, whereby customers enter into a payment arrangement with the benefit of having their outstanding debt that is older than 1 July 2018 written off, will only be available until 30 June 2022. More than R1,9 billion has already been written off and residents with outstanding debt are encouraged to approach us to see if they could also benefit. Customers are encouraged to visit a Contact Centre to enter into a payment arrangement to benefit from this incentive. A condition of the payment arrangement is that the debt, which is written-off, will be reinstated if customers default on their instalment plans.

‘There are many different forms of help on offer and the City reiterates its call for those who are in financial difficulty to approach us and see if they qualify for support,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.

Source: City Of Cape Town