Cape Town - Rating agency Moody’s has retained the City of Cape Town’s outlook as stable, noting that its debt levels remain lower than many of its rated peers in South Africa.
The City on Monday said its strong debt management practices, sturdy liquidity and robust financial performance were recently reflected with Moody’s having retained the City’s outlook as stable (Ba3/NP).
The municipality has an annual payment ratio as at June 30 2022 of 97%.
According to Moody’s rating report, the rating outlook reflects the City’s ‘moderate financial performance, supported by prudent financial management and a large and diversified economic base.
The City said it has consistently reported robust operating surpluses and strong liquidity.
“The City is pleased to retain its stable outlook. Good rating opinions are crucial for financial planning. The better the rating, the lower the interest charged on debt, which means it costs less to service debt and conserves public money. This indicates there is optimism amid ongoing economic pressure. In Cape Town, we are doing all we can to ensure we remain financially healthy and continue to provide services to our residents,” said mayco member for finance, Siseko Mbandezi.
More than 40% of Cape Town’s residences benefit from some level of financial rates and service relief.
The City said it has an extensive indigent policy and rebate system for pensioners, and financial assistance includes some R3,75 billion in rates and tariff relief to qualifying residents this financial year.
“It is important that municipal income is protected. Without it, the City will not be able to provide basic and essential services. Anyone struggling to pay is encouraged to approach the City and discuss their circumstances with us. Quite often we see situations where people are struggling to pay their municipal account but instead of approaching the City so that their particular circumstances can be looked into and a formal arrangement can be made, they reduce their payments or make ad hoc payments and then fall into arrears,” Mbandezi said.
“Residents should rather approach the City first to either access the indigent and rates rebate benefits the City is offering or to make a payment arrangement. In this way, everyone is on the same page and debt management and legal actions can be avoided. Importantly, there is help on offer. The City’s policies aim to accommodate everyone according to their income level. The City reiterates its call for residents who are in financial difficulty to go to their nearest customer care office and see if they qualify for assistance,” said Mbandezi.
- For rates or services relief
Visit: https://bit.ly/applyrelief or a City customer office.
Email: [email protected]
- Pensioner rates relief
Pensioners 60 years or older and people who receive social grants earning not more than R17 500 may qualify for a rates rebate of between 10% and 100%. They are invited to visit the nearest City customer care office or send an email to [email protected]. For more information on how to apply for pensioner support: https://bit.ly/applyseniorsupport
- Rental housing relief
Those renting a community residential unit from the City can also apply for additional financial support if struggling to pay rent and qualify for rental housing relief.
Human Settlements Directorate's Call Centre: 021 444 0333 or WhatsApp: 063 299 9927
- For payment arrangements
Visit: https://bit.ly/arrangepaymentplan
Email: [email protected]
- Businesses in financial hardship due to the economic pressure from the Covid-19 lockdown can approach the City for relief based on the merits of each application.
Email: [email protected]
Cape Times