Mopani District Municipality (Mdm) Indigent

MARULENGLOCALMUNICIPALITY INDIGENT POLICY

PREAMBLE

This document is the Maruleng Local Municipality (MLM) indigent policy. Its objective is to ensure that poor households are not denied access to at least basic services supplied by MarulengLocalMunicipality.

1. PURPOSE

1.1 To set guidelines for the identification of households that qualifies as indigents

1.2 To set guidelines on the level of services that will be supplied to indigent

households.

1.3 To set broad principles, resulting in the adoption of by-laws for the implementation and enforcement of the tariff policy.

1.4 To set guidelines on the cross subsidisation and funding for the indigents.

2. Regulatory/Legal Framework

2.1 Section 214 (1) of the Constitution Act 108 of 1996 stipulates, inter alia, the following:

An Act of parliament must provide for:

The equitable division of revenue raised nationally among the national,provincial and local sphere of government.

2.2Section 74 (2) (c) of the Municipal Systems Act, Act 32 of 2000 stipulates inter alia the following:

• Poor households must have access to at least basic services through:-

• Tariffs that cover only operating and maintenance cost.

• Special tariffs or life line tariffs for low levels of use or consumption of services or for basic levels of service, or

• Any other direct or indirect method of subsidization of tariffs for poor households.

3. DEFINITIONS

For the purposes of this policy, the following terms shall bear the following meanings:

3.1 “Indigent households” shall mean those households that are at or below the poverty threshold as determined by MarulengLocalMunicipality.

3.2”Indigent” means those persons who, due to a number of factors, are unable

to pay the full economic costs on basic levels of services.

3.3 “Indigent tariff” means the tariff as determined by MarulengLocalMunicipality

Council and applicable to indigent households.

3.4“Indigent subsidy” means the allocation of funds from the equitable share grant as determined by Maruleng Local Municipality Council for the indigent

households.

3.5“Indigent rebate” means the amount that is credited/tariff reduction to the

indigent household

3.6“Fairness” means the treatment of consumers using a uniform set of criteria

and procedures

3.7“Property”means any portion of land including any improvements thereof

which the boundaries are determined within the jurisdiction of Maruleng Local Municiplaity.

3.8 “MLM”means MarulengLocalMunicipality

4. DETERMINATION OF SUBSIDY

The subsidy for each service rendered by MarulengLocalMunicipality will be determined by Council from time to time. Such determination will take into account the Nationally allocated funds and revenue generated/to be generated by the district. The process will form part and parcel of the budget process of the MarulengLocalMunicipality.

5. RESPONSIBILITIES

5.1The overseeing responsibility for the implementation of this policy is delegated to the Municipal Manager in terms of Section 59 of the Municipal System’s Act, Act No.31 2000.

5.2 Legislation determines that MarulengLocalMunicipality is responsible for the

supply of services at affordable levels and tariffs to consumers and to

effectively limit the accumulation of arrear debts.

5.3The Council acknowledges that welfare is a Central Government responsibility, however , Local Government remains responsible for ensuring that basic services are provided to poor households.

5.4MarulengLocalMunicipality accepts its responsibility to creatively develop ways and means to recover all arrears from consumers in a manner which is affordable to the Council and that will ensure effective financial management.

5.5 All subsidies that will be made to a portion/group of consumers will be carefully considered in order to minimize the impact of cross subsidization by other groups.

5.6 Cash Flow limitations will determine the extent of concessions that will be made.

5.7 The onus to be registered as an indigent household lies with the individual

consumer and council has the responsibility to communicate this policy to the

consumers.

6. REGISTRATION AS INDIGENT

6.1 All the households that seek to be classified as indigent should complete an application form obtainable at the Municipality’s offices.

6.2 The Council at MarulengLocalMunicipality shall form a committee that will be

responsible for assessing all applications to be classified as indigent through

a compliance check to this policy.

6.3 If the application is approved, the provision of subsidies will commence

immediately after approval.

6.4 The provision of subsidies will be valid until the end of that financial year for the processing of Municipal accounts unless if deemed otherwise by Council.

6.5 The following may be required to accompany the application form:

6.5.1 Proof of income of household owner and all the other members of the

household above the age of 18 years (excluding tenants)

6.5.2 Proof of ownership or rental agreement.

6.5.3 Certified copy of identity document.

6.5.4 Social Worker’s report.

6.5.5 Affidavit made at a police station.

6.5.6 Proof of registration as being unemployed (residents other than pensioners with no income).

6.5.7 Latest Municipal account where applicable.

6.6 The list of applicants who have applied for classification as indigent shall be

available for a period of one month at the Municipal offices and any other place that the Council may deem fit to ensure that it is made public and that the members of the community are offered an opportunity to raise objections

6.7 The Municipal official/Coucillor/Traditional leader shall sign the application form as proof that all requirements have been complied with.

6.8The signed application forms shall be forwarded to the responsible Council

Committees together with all the rejected applications, plus the reasons for

disapproval.

6.9 In assessing the application forms the committee shall consider the information as supplied on the application forms and any other information at its disposal.

6.10 An unsuccessful applicant has the right to appeal against the decision of the

committee and make available any other information he/she feels was not

considered in the consideration of his/her application.

6.11 All indigents will have to reapply for registration by the end of each financial

year, unless if deemed otherwise by Council.

6.12 All those indigents who do not apply for re-registration as indigents will be

removed from the indigent register and will be considered as normal consumers from the month in which they were removed from the register.

7. APPROVED INDIGENT HOUSEHOLDS ENTITLEMENTS

7.1 All approved indigent households will be entitled to a maximum subsidy as approved by Council from time to time to cover basic services.

7.2Council will determine the amount of targeted subsidies on a yearly basis

which may vary between categories of indigent consumers.

7.3 If an indigent consumption or use of a Municipal service is less than the subsidized service or free basic services, the unused portion may not be accrued by the customer and will not entitle the customer to cash or a rebate in respect of the unused portion.

7.4If an indigent customer’s consumption or use of a Municipal Services is in excess of the subsidized service or free basic service , the customer will be obliged to pay for such excess consumption at the applicable rate.

8. SOURCE OF FUNDING

8.1All indications are that the equitable share grant will be used to subsidizethe indigents.

8.2The Council may have to provide funds annually from its own generated revenues on the budget for the subsidization of indigent households.

9.INDIGENT TARIFFS AND SUBSIDY

9.1 The Council may, as part of the budgetary process determine an indigent

tariff that will be charged to indigent households to recover only

maintenance and operational costs.

9.2 The Council will determine the indigent subsidy from time to time based on

the equitable share received from the national government and the poverty threshold as well as any subsidization that can be possible in the tariff structure.

9.3 Indigent tariff will be charged in terms of the Council’s tariff policy.

10.LEVELS OF SERVICES

10.1The levels of services to be provided for indigent households will be the same as for any other households.

10.2The Municipality will only provide relief to payment for services to the value deemed to be basic to indigent households.

10.3The services will be those for which MLM is the legal service authority.

11.CHANGE IN STATUS

11.1 Where the status of the debtor changes to indigent, he/she should make arrangements with the municipality to settle the amount in equal installments over an agreed upon time.

11.2 Where a consumer no longer qualifies as indigent, normal tariffs will apply to him/her from the month in which his/her name was removed from the indigent register.

12.CREDIT CONTROL

Indigent households that do not pay their accounts will have their subsidies withdrawn and be subjected to the MLM credit policy enforcement.

13. NON COMPLIANCE OF HOUSEHOLDS REGISTERED AS INDIGENTS

13.1.The households will therefore be treated as ordinary account holders for the financial year concerned.

13.2.The onus is on each registered indigent to advice the Municipal Manager of such a failure to comply

13.3.Where households were in arrears before they become indigent, such households will have to make arrangements with the Municipality in terms of the Municipality’s credit control and debt collection policy.

13.4.If these arrangements are not made, no subsidies will be paid or free services provided.

13.5.Services may be terminated in terms of the Municipality’s credit control and debt collection policy.

13.6.The relief to indigent may be withdrawn at the discretion of the Municipal Manager if:

13.6.1A registered indigent who qualifies for such relief fails to keep the terms

of the policy agreement: or

13.6.2 Any tampering with the installations of the Municipality is detected.

13.7 If a registered indigent is found to have provided fraudulent information to

the Municipality in regard to any material condition for registration as an indigent, such person shall be removed from the indigent register, and shall be liable to repay with immediate effect all indigence relief received from the date of such fraudulent registration.

14.TERMINATION OF INDIGENT SUPPORT

14.1 Indigent support will be terminated in the case where:

14.1.1The accountholder dies

14.1.2When the indigent sells his/her property

14.1.3When the indigent’s circumstances change or indigent criteria for approval

changes to an extent that approval no longer applies

14.2 If the indigent fails to pay for the account of his/her consumption or use of a

Municipal service in excess of the subsidized service or fails to honor any

arrangements made by him/her for payment of outstanding account.

14.3 If it is discovered later that indigent has supplied fraudulent or false

information on registration.

14.4The indigent accountholders fails to renew status after the validity period of

status being granted.

15REPORTING REQUIREMENTS

The Municipal Manager shall report on a regular basis to the Executive Mayor

or Executive Committee, for the period concerned :-

15.1 The number of households registered as indigents.

15.2 The budgeted value of the subsidies and the rebates concerned.

16.REFERENCES TO OTHER MUNICIPAL POLICIES

16.1Credit Control and Debt Collection Policy

16.2Tariff Policy

17.REPEAL AND SHORT TITLE

This policy is called the MARULENG LOCAL MUNICIPALITY INDIGENT POLICY.

18. CONCLUSION

This indigent policy should be interpreted as a mechanism whereby MarulengLocalMunicipality fulfils its obligation as provider of services to its

consumers as stipulated in the equitable share grant while making it a point that only those who qualify for the relief do benefit from the subsidies.

1

MARULENGMUNICIPALITY INDIGENT POLICY