8% discount incentive for city ratepayers

2016-03-29 13:47

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Pietermaritzburg - Msunduzi residents who pay their municipal accounts on or before the due date may receive an eight percent discount that will reflect on the following month’s statement as a credit — should full council approve the proposal.

The incentive is part of the city’s strategy to encourage customers to pay their accounts regularly on a monthly basis.

The finance committee also proposed an amnesty campaign to facilitate a quicker settlement of arrears as opposed to a lengthy payment arrangement for those who have debt older than 120 days.

The campaign will target all arrear debt.

For indigent consumers, all interest and collection charges outstanding will be reversed upon settlement of the entire rates arrears.

For non-indigent customers, 65% of outstanding interest and collection will be reversed upon settlement of the entire rates arrears. A report to the city’s executive committee last week says the settlement amount can be paid over six instalments with no interest being charged over that time.

Non-indigent customers who opt to make a single payment of the full settlement amount will receive a further 10% discount over and above the 65% discount.

The city hopes to collect 30% of arrear debt, which is an anticipated income of more than R570 million.

If approved by full council, the campaign will run for 12 months.

Once approved, residents will have three months to apply for the amnesty.

City Mayor Chris Ndlela said he was happy to see regularly paying customers were also offered an incentive.

“We must meet our people half way,” said Ndlela in last week’s meeting.

• kailene.pillay@witness.co.za

Read more on:    pietermaritzburg

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