The City of Cape Town’s 12 months moving average payment ratio for the period ended 31 January 2020 is 97,99%.

This is higher than the 12-month moving average payment ratio as at 31 January 2019, which was 92,57%. It is a positive achievement thanks to the City’s enhanced debt collection efforts. The City continues to act against debtors who have the means to pay but refuse to do so as unpaid debt means that there is less money available for service delivery. The City thanks its ratepayers and customers for continuing to pay their rates and services bills. The high level of payment means that services can continue to be delivered to all. Read more below:

The total cash collected during January 2020 was more than R2,6 billion, which is an increase of approximately R136,6 million compared to January 2019.

‘These are positive trends especially considering the negative impact that the national economic situation continues to have on residents and businesses. A good debt collection ratio is an indication of a well-run organisation and sound governance. It is vital to ensure that the City becomes more resilient and it is thus vital that the culture of payment is enhanced at every opportunity.

‘Much work continues to be done around natural and financial resource protection. There is a continuous drive to reduce water consumption. Increased water consumption has led to higher billings on indigent accounts while the water leaks project continues to be rolled out to the appropriate properties.

‘The City also continues its focus on those who are able to pay, but refuse to do so. Debt management actions continue,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson.

Billings on rates and services during January 2020 were R3,64 billion while arrears debt is R5,68 billion which is lower than 60 days of billing.

Debt Management actions are being intensified especially against those who can pay, but choose not to pay and the frequent defaulters.

Actions include:

the restriction/disconnection of water/electricity services

the collection of all arrear debt through electricity prepaid purchases

property owners being listed for adverse credit listing at the relevant credit bureaus

accounts being handed over for legal actions to the appointed attorneys to initiate legal recovery actions, which could lead to a sale in execution of the property to recover the municipal debts

Priority debt management actions are being pursued against the:

Top 1 000 debtors

Government departments

Councillor and staff arrears (there are currently no councillors in arrears)

‘The City has to make a provision for bad debt in its budget, which means that fewer services are delivered. If those who have the means to pay refuse to pay for services that they use, it has a large impact on the sustainability of the City and it impacts our absolute desire to make this great City even greater for all who live in it.

‘For our society as a whole as well as for this municipality, it is vital that we instil a culture of payment and drive the message that we all have rights but we have responsibilities too. 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 the notices sent and not made any attempt to obtain assistance from the City,’ said Alderman Neilson.

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 and to avoid debt management/legal actions from being instituted against them. Importantly, residents who are in financial difficulty are urged to approach the City for guidance on how to manage their debt as ignoring the problem will not make it go away.

Source: City Of Cape Town