DRAFT
INDIGENT SUPPORT POLICY
2021/2022
INDEX
1.
BACKGROUND AND PREAMBLE2.
DEFINITIONS3.
POLICY OBJECTIVE4.
RESPONSIBILITY AND ACCOUNTABILITY5.
POLICY PRINCIPLES6.
CRITERIA FOR QUALIFICATION FOR INDIGENT SUPORT7.
EXTENT OF INDIGENT SUPPORT8.
DISTRIBUTION OF THE INDIGENT SUPPORT9.
APPLICATION FOR INDIGENT SUPPORT10.
CONTROL MEASURES FOR THE DISTRIBUTION OF INDIGENT SUPPORT11.
ACTION AGAINST MALPRACTICES / PENALTY CLAUSE12.
BASIC SERVICES OFFERED TO THE INDIGENT13.
DISCRETIONARY POWERS 14 . INDIGENT BURIAL15 . RENTAL OF MUNICIPAL PROPERTIES
1. PREAMBLE AND BACKGROUND
In terms of Section 74 of the Local Government Municipal Systems Act, 2000, Council must adopt and implement a Tariff Policy and, in terms of the Local Government Property Rates Bill, adopt and implement a Rates Policy. Council should, in terms of both of the above pieces of legislation, take into consideration subsidisation of tariffs and rates for poor households. Arising from the above, Council needs to approve an Indigent Support Policy. This policy will provide procedures and guidelines for the subsidisation of basic services charges and assessment rates to its indigent households.
The Council accepts responsibility for the rendering of services in terms of Schedules 4 and 5 of the Constitution as well as other services, which may be delegated by National and Provincial Government. The Council must endeavour to render a basic level of service necessary to ensure an acceptable and reasonable quality of life, and which takes into account health and environmental considerations. None of the residents should fall below this minimum level of services.
2. DEFINITIONS
For the purpose of this policy, any word or expression to which a meaning has been assigned in the Act, shall bear the same meaning in this policy, and unless the context indicates otherwise –
“Act” means the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), as amended from time to time;
“Authorised Officer” means any official of the Council who has been authorised by the Council to administer, implement and enforce the provisions of this Policy;
“by-law” means a by-law adopted by the Council;
“city manager” means the person appointed by the Council as the City Manager of the Greater Kokstad Municipality in terms of section 82 of the Local Government:
Municipal Structures Act, 1998 (Act 117 of 1998), and includes any person:
(a) acting in such position; and
(b) to whom the City Manager has delegated a power, function or duty;
“Council” means – The Council of the Greater Kokstad Municipality established by Provincial Notice No. 1264 of Government Gazette 21807 of 28 November 2000, as amended, exercising its legislative and executive authority through the municipality; or
(a) its successor in title; or
(b) a structure or person exercising a delegated power or carrying out an instruction, where any power in these by-laws has been delegated or sub-delegated, or an instruction given, as contemplated in section 59 of the Act; or
(c) a service provider fulfilling a responsibility under these by-laws, assigned to it in terms of section 81(2) of the act, or any other by-law, as the case may be;
“indigent person” means a person referred to in paragraph 6;
“municipality” means the Greater Kokstad Municipality
“services” means the basic services referred to in this policy
3. POLICY OBJECTIVE
3.1 The objective of the policy is to ensure the following:
(a) the provision of free basic services to the community in a sustainable manner, within the financial means of Council; and
(b) to provide procedures and guidelines for the subsidisation of service charges and rates to its indigent households, using a portion or the whole of the Equitable Share for this purpose.
3.2 Council also recognises that many of the residents can simply not afford to pay the required service charges and rates, and Council will endeavour to ensure affordability through:
(a) Setting rates and tariffs which will balance the economic viability of continued service delivery; and
(b) Determine appropriate service levels.
4. RESPONSIBILITY AND ACCOUNTABILITY
The Council accepts responsibility for laying down the Indigent Support Policy.
5. POLICY PRINCIPLES
The following is a summary of the guiding principles of the Indigent Support Policy.
a) The Policy is in accordance with the Systems Act, 2000, and the Local Authorities Ordinance, 1974, and other amending legislation.
b) Relief will be provided to registered residential consumers of services rendered by Council as well as registered property owners.
c) Relief must be constitutional, practical, fair, equitable and justifiable.
d) The support should not result in the creation of a massive bureaucratic administration that would not be cost effective to implement.
e) Differentiation must be made between those households that cannot pay and those households that will not pay.
f) The payment of service charges and rates should be affordable to the indigent.
g) Support should be for a period as determined by Council.
h) The Indigent Support will prevail as long as funding is available.
i) The Council may review and amend the qualification for Indigent Support annually during the consideration of the Budget.
j) The collective or joint gross income of all the households will be taken into account. The household income must be correctly reflected on the application form requesting support.
k) The residents/owners must formally apply on the prescribed form for the relief and will qualify for the support according to the prescribed criteria adopted by Council. (Application forms are available at the customer care centre and or CDWs.) After the application has been lodged, an effective and efficient evaluation system should be used in order to obtain the outcome.
l) If a person is found to be indigent, he/she should be registered on a database linked to the debtors system.
m) The onus is on the recipient to inform the Council of any change in his/her status or personal household circumstances.
n) Disciplinary measures decided by the Council should be imposed on people who abuse the support system or have provided incorrect or false information.
o) Information regarding the indigent support must be included in the pamphlets Council intends distributing to launch the Rates Awareness Campaign.
p) The Indigent Support Programme must form part of the Council’s eventual Poverty Alleviation Programme.
6. CRITERIA FOR QUALIFICATION FOR INDIGENT SUPORT
a) A household where the combined or joint gross income of occupants/residents/dependents/ owners of the property, over the age of 18 years, or who have potential earning capacity, is less than R3780 per month, and can no longer afford to pay service charges or rates. On determining the household income the foster care grant is not included.
b) Only registered owners of property must apply.
c) Owners/households who formally apply for relief on the prescribed application form and satisfy the criteria.
d) Owners/households who own more than one property in municipal area will get subsidy only on one property which they are permanently living in.
e) Owners/households who are not receiving significant benefits or monetary payments.
f) Child headed families with no income but permanently reside on the property will be considered provided such is confirmed by proof from Department of Social Development, and that the property market value is below R1000 000.
g) Indigent households with property value in excess of R1000 000 will be subjected to the following
Exemption of property value equal to R1000 000 and be liable for rates on the value in excess of this amount.
Further evaluation
h) A list of indigent consumers will be maintained and made available to the general public.
i) The subsidy will only be valid for 24 months where after the owner must re – apply.
j) Provided that requirements as stated above are met (a, b and f) the market value of the property must not exceed R 1000 000.00
k) If an applicant consumes less than 400KWH (Equivalent to R479.66) per month using and average consumption.
l) An approved indigent applicant will qualify for 100% subsidy.
m) On application the applicant will be required to supply affidavit with particulars of whether or not such a person is working.
n) On application the applicant will provide proof of income.
o) The applicant will also provide particulars of all people staying in the house on the space provided on the application form.
p) Once completed, the indigent support register will be sent to Department of Labour for verification of employment status.
q) Letter of authority be provided in a case of a person who is not an owner of the house, whose surname differs from the deceased.
r) On renewal of the indigent subsidy, the letter of authority will not be required if the applicant was approved in the previous year.
s) In case of the people staying in houses not belonging to them but to owners who are still alive yet not staying in the case. These will register under special applications and each Ward Councillor assisted by Ward Committee members must compile a list of applicants, such list must consist of people who have been voting as from 2006,
t) Each person/applicant (on above) will be verified by Ward Councillor assisted by Ward Committee members, but legal process of approving indigent support will be undertaken by GKM
7. EXTENT OF INDIGENT SUPPORT
The extent of the monthly support will be determined by the money that had been appropriated in the budget from the Equitable Share divided by the number of recipients, with a maximum of an average monthly service account or rates account determined as follows: (Refuse collection (if not included in the rates) a) Subsidies will be limited to rates, refuse, electricity and burial.
b) Subsidies will be determined during compilation of the annual budget.
The Council will assess the level of support every 24 months, depending on the number of applicants.
Allowance must be made for re-application and assessment
The level of indigent support shall not exceed the monthly account of any household.
8. DISTRIBUTION OF THE INDIGENT SUPPORT
a) Relief will only be granted to those residents who apply and qualify.
b) Relief must be significant so as to relieve the recipients of financial hardship for a twelve month period i.e. from July to June.
c) The council may on time to time verify the indigent status of the applicant d) All registered consumers may be charged the determined economical tariff
(life-line tariff) or charge.
e) The recipient’s monthly account will be credited with the amount of indigent support as determined by Council, on a monthly basis.
f) Relief will be applied for, for a period not exceeding 24 months in the case of service charges, depending on the household circumstances, and rates for a period of 24 months with 1 July to 30 June the next year (Council’s financial year).
g) The household may apply for a continuation of relief depending on his/her circumstances.
9. APPLICATION FOR INDIGENT SUPPORT
Applications for relief must be made on the prescribed application forms. The applicant must comply with the necessary requirements.
The application must, inter alia, contain the following information (a proforma application form is attached to the document):
a) Prescribed application form b) Proof of income;
c) Proof of residence;
d) Identification documents
e) Confirmation of employment status from department of labour f) Copy of both rates and services accounts
g) Declaration by the applicant on the application form be include)
The onus at all times to reapply for continued relief or submit proof of change in circumstances rests on the household/owner.
10. CONTROL MEASURES FOR THE DISTRIBUTION OF INDIGENT SUPPORT
The Head of the Department concerned must scrutinise each application prior to approval. On a bi-monthly basis the status and complete details of the applicants and respective beneficiaries must be submitted to Council for noting.
11. ACTION AGAINST MALPRACTICES / PENALTY CLAUSE
11.1 The Council or Exco may deal with queries referred to them Indigent Support who may take the following action:
a) Request the resident/owner to provide full proof of his/her banking account and income details as well as pension registration;
b) Direct enquiry at the recipient’s residence;
c) Request a social worker’s report on the household; and d) Any other action required by Council or Exco.
11.2 If it is established that incorrect information was furnished in obtaining relief, the following action can be taken:
a) Suspend or stop the relief immediately;
b) Recover from the recipient the amount of relief furnished by debiting his/her account;
c) Normal credit control in accordance with Council’s credit control policy will apply; and
d) Institute criminal charges of fraud against the recipient and such recipient may not again be considered for indigent relief for a period of five years or a fine of R 3000.00
e) Indigent burial customers shall be charged double normal rate for burial costs in cases of fraudulent claiming.
11.3 Indigent support will be automatically terminated under the following circumstances
a) Upon death of accountholder
b) At the end of the twenty four month (24) cycle
c) when the indigent accountholder disposes of the property, either by sale or by means of donation, the amount of relief granted for the financial year will be reinstated and payable by accountholder
d) If found that any person residing on the property without his/her income being disclosed.
12. BASIC SERVICES OFFERED TO THE INDIGENT
12.1 Indigent Support is to be provided for the following services, subject to the availability of funds and the relevant criteria being adhered to:
l
a) Assessment rates
b) Refuse (if not included in the rates) c) Electricity (where applicable)
12.2 The Council can determine special tariffs for use by the Indigent for the following services, again subject to the availability of funds and compliance with the criteria:
a) Swimming pools b) Fire services c) Museums d) Hiring of halls e) Cemeteries/Burial
13. DISCRETIONARY POWERS
The Council reserves the right to amend any clause, stipulation or tariff embodied in the Indigent Support Policy in the interest of parties concerned.
14.
Indigent burialCouncil shall provide indigent burial for Approved Indigent customers as per council approved criteria. Additional criteria include:
1.1.1. On application of indigence beneficiaries who reside with the applicant must be nominated.
1.1.2. Only beneficiaries listed on application will be considered for indigent burial.
1.1.3. The Municipality shall pay an amount of R1000.00 to a reputable funeral undertaker for the burial costs, subject to funds being available on the budget.
1.1.4. No transportation will be provided by the Municipality to the bereaved family for attending the funeral.
1.1.5. Only single grave shall be provided.
1.1.6. No grave stones shall be erected/allowed on indigent graves.
1.1.7. No Councillor is allowed to authorize indigent burial without consultation to/permission from the Municipality.
15. Rental of Municipal Properties
15.1 Pensioners who have valid lease agreements with the municipality will be subsidised on rental amount provided that; they apply for a subsidy and submit supporting evidence that the combined household or joint gross income of all occupants/residents/dependents, over the age of 18 years, or who have potential earning capacity, is less than R3780 per month,
