Cape residents owe the City more than R9.887billion in unpaid rates and services bills, thus affecting the municipality’s ability to deliver services
Cape Town - Cape Town's residents owe the City more than R9.887billion in unpaid rates and services bills, which is severely affecting the municipality’s ability to deliver services. The City’s finance directorate sent a report to the finance portfolio committee that it was owed R7.846bn by households and a further R1.513bn by businesses, with other outstanding debt totalling nearly R500million.
There was an amount of R7.145bn in arrears owed to the City as at the end of January this year, which was more than R295m higher than in December 2018, due to an increase in debt owed over 120 days or more. Despite the debt, the City still managed to recover a large percentage of its rates, with a 92.57% payment rate. That rate would increase to 95.88% should indigent household water and sewerage usage above the prescribed targets be excluded from the 12-month average calculation, the report revealed.
“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.” Sandra Dickson of civic activist group Stop Coct said this was a clear indication that residents could no longer keep up with the City’s steep tariffs.
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