THE financial strain of the ratepayer has had a direct impact on the operation of municipalities, with in-creasing signs that the global recession is becoming a threat to the financial health of some municipalities.
On 26 January, the Drakenstein Municipal Council took a decision to institute debt relief for residents with old debt (debt accrued before 1 July last year) on a rand-for-rand incentive scheme, as long as their current accounts are up to date.
Such debtors who visit a municipal office before 31 May to arrange to pay off old debt, will only need to pay off 50% of what they owe, to have the total old debt written off (for every Rand paid, one Rand will be deducted from his/her arrears account).
All account holders will qualify for this incentive: residential, business, industrial, agricultural, churches and sundry debt.
The municipality will also relieve the debt of all active indigent consumers, on the condition that they apply for indigent grants before 31 May in order to benefit from this relief.
Deceased estates and insolvent debtors will also qualify for debt relief, subject to consultation with the Municipality.
The Drakenstein Municipality is confident that by reducing the debt burden of qualifying account holders, it will go a long way to improving the debt collection rate.
Despite the challenging times, the Drakenstein Municipality has managed to maintain a 95% payment ratio, during the 2009/2010 Financial Year.
“We would like to thank our community who pay their accounts for municipal services. We would like to increase this payment rate until the 100% payment ratio is achieved,” said Councillor JT Basson (finance portfolio).
“The monthly payment of municipal services, ensures financial viability of the Drakenstein Municipality as a going concern and to fulfill its legislative responsibility in rendering continuous effective and efficient service delivery.”
