Notice provided by the City of Cape Town to their ratepayers seeking Economic relief in these times
The City is aware that during these difficult times, property owners are finding it difficult to pay their municipal rates and services in full, as their monthly income has been impacted due to the announcement of a national lockdown and we recognise the massive impact this will have on our already fragile economy.
As a municipality, we have taken bold steps to reduce the economic impact on you as a Ratepayer.
The City will be able to accommodate you by taking the following actions:
- The Property Rates portion of your account be deferred and paid off via a payment plan in the future (first instalment payable July 2020).
- That you continue to pay for Services provided – Water, Sewerage, Electricity, Refuse
- The payment arrangement will be loaded on the account on 1 July 2020, until such time a lock will be placed on your account to prevent interest charges and any dunning action.
Please forward proof of loss of income/ reduction in income (Proof of income as at March and as at April 2020) in order to activate the above benefits.
Once the lockdown has ended, the City staff will interact with you to provide the necessary documentation required for the payment arrangement.
It must be noted that:
- No property owner will be exempted from paying property rates; the payment arrangement merely postpones payment of rates in an effort to assist those property owners negatively affected by the COVID-19 lockdown.
- If approved by the Municipal Manager or any delegated official, a written payment arrangement must be entered into and signed by both parties before the payment arrangement will become effective.
- The payment arrangement only applies to the payment of property rates. All other components of the municipal account such as electricity, water, sewerage and solid waste removal, etc. must still be kept paid to date. This will form a standard part of the Arrangement.
- Arrangements may not exceed 12 months, the first instalment being July 2020 and must be paid when the July 2020 account is due.
- This arrangement will be for a maximum of three months as agreed in the signed arrangement.
Cut-off date for submission of applications is 31 May 2020.
- Arrear rates will not attract any interest during the arrangement period. Should the arrangement not be honoured, the full outstanding amount will become due immediately and interest will become payable. Furthermore, the account will be subjected to normal credit control and debt collection procedures.
The following documentation will be required as proof when entering into the payment arrangement or application for additional benefits
(or any other information that the municipality may require):
- The municipal account number for which the relief is sought
- Your contact details – email and cellphone number
- Certified copies of proof of income (not older than three months) for the owner and spouse/partner and three months’ original, printed bank statements for all banking accounts from all banking institutions (not older than three months)
- Letter /s from the employer/s state the reasons for the reduced “income” of both partners or provide any other information that the municipality may require
- Affidavit from Business, Commercial and Agricultural property owners must prove loss of income and also provide any further information that may be required by the municipality
- Certified copies of ID of owner and spouse/partner
- Certified copy of lease agreement if your property or a portion of your property is being leased
- Certified copies of proof of pension (private and state pension)
- Certified copies of proof of investments or dividends
- Certified copies of proof of usufruct/habitation/executor/
administrator or curator
- Certified copy of proof of trust document and income of all beneficiaries of the trust if applicable
- A certified copy of the applicant’s ID and proof of income for all owners is required if the property is registered in the names of multiple owners; together with a certified power of attorney permitting the applicant to act on behalf of the other owners in respect of the specific property
- A certified copy of the applicant’s (person residing) ID and certified proof of income for all other members if the property is registered as a close corporation (CC); in addition, a certified letter permitting the applicant to act on behalf of the other owners in respect of the specific property
- A certified copy of death certificate or Will, if applicable
Kindly forward documentation to Covid19.Relief@capetown.gov.za
In addition, kindly find below a table of benefits provided by the City.
|Commercial properties||Help||Applications assessed on merit|
||Apply for help via email (during lockdown): COVID19.Relief@capetown.gov.za or SMS to 48043||Please submit proof via email|
*Applications will be assessed during the lockdown for those able to submit proof via email. Once the lockdown is over applicants may submit their proof at the City’s customer care offices and their applications will then be assessed and backdated where necessary
The additional measures are over and above the R3 billion in rates and service relief the City already offers. For instance, water at 350 litres per day is already provided free of charge to 40% of the metro’s population.
Further relief steps are being considered for implementation in the 2020/21 Financial Year and will be announced at a later stage.
The City helps where it can but can’t risk a breakdown in essential basic service provision by offering blanket relief for all.
- Rates and service charges comprise an amount equal to 72% of the City’s income per month. Take this away for some months and the City ceases to be able to deliver its services.
- All local governments are in this position. Even though the City is perhaps stronger for its sound financial management over the years, it cannot afford to have months of no income from rates and services.
- COVID-19 costs are set to rise over the weeks and months ahead and cash flow could reduce by between R1 billion to R3 billion per month, depending on how it is managed. A reprioritisation of budgets and programmes is under way.
- The City does not have funds sitting in bank accounts that don’t have a specific purpose. We ensure that we have enough cash to cover working capital needs and the rest is used to fund budget needs. This ensures that rates and tariff increases are kept as low as possible.