This By-law was repealed on 2015-07-01 by Customer Care Management, Credit Control and Debt Collection.
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Hessequa
South Africa
South Africa
Customer Care Management, Credit Control and Debt Collection By-law, 2014
- Published in Western Cape Provincial Gazette 7278 on 13 June 2014
- Assented to on 28 May 2014
- Commenced on 1 July 2014
- [This is the version of this document from 13 June 2014 and includes any amendments published up to 9 June 2023.]
- [Repealed by Customer Care Management, Credit Control and Debt Collection on 1 July 2015]
1. Preamble
Whereas section 152 (1) (b) of the Constitution of the Republic of South Africa Act 108 of 1996 ('the Constitution) provides that one of the objects of local government is to ensure that the provision of services to communities occurs in a sustainable manner;And whereas section 4 (1) (c) of the Local Government: Municipal Systems Act 32 of 2000, as amended ('the Systems Act') provides that the Council of a Municipality has the right to finance the affairs of the Municipality by charging fees for services, imposing surcharges on fees, rates on property and, to the extent authorized by national legislation, other taxes, levies and duties;And whereas section 5 (1) (g), read with subsection (2) (b) of the Systems Act provides that members of the local community have the right to have access to municipal services which the Municipality provides provided that, where applicable and subject to the policy for indigent customers, pay promptly for services fees, surcharges on fees, other taxes, levies and duties imposed by the Municipality;And whereas Chapter 9, sections 95, 96, 97, 98, 99 and 100, of the Systems Act provides for Customer Care Management, Debt Collection responsibility of the Municipality, contents of the policy, by-laws that give effect to the policy, Supervisory authority and Implementing authority, respectively.Now therefore the Municipal Council of Hessequa Municipality adopts the following By-law regarding Customer Care, Credit Control and Debt Collection.2. Definitions
In this By-law any word or expression to which a meaning has been assigned in the Local Government: Municipal Systems Act has that meaning, unless the context indicates otherwise-“Account” means an account rendered specifying charges for municipal services provided by the Municipality, or any authorized and contracted service provider, and which account may include assessment rates levies.“Accounting Officer” means the municipal manager appointed in terms of Section 60 of the Municipal Finance Management Act.“Annual Budget” shall mean the budget approved by the municipal council for any particular financial year, and shall include any adjustments to such budget.“Annually” – means once every financial year;“Arrangement” means a written agreement entered into between the Municipality and the customer where specific repayment parameters are agreed to. Such arrangement does not constitute a credit facility envisaged in terms of section 8(3) of the National Credit Act but is deemed to be Incidental Credit as envisaged in terms of section 4(6)(b) read with section 5(2) and (3) of the National Credit Act.“Arrears” means those rates and service charges that have not been paid by the due date and for which no arrangement has been made.“Authorized Representative” means a person or instance legally appointed by the Municipality to act or to fulfill a duty on its behalf.“Basic municipal services” shall mean a municipal service necessary to ensure an acceptable and reasonable quality of life, which service – if not provided – would endanger public health or safety or the environment.“Billing Date” means the date upon which the monthly statement is generated and debited to the customer's account.“Business and Commercial Property” means –(a)property used for the activity of buying, selling or trading in commodities or services and includes any office or other accommodation on the same property, the use of which is incidental to such activity; or(b)property on which the administration of the business of private or public entities take place.“By-law” shall mean legislation passed by the council of the Municipality, and which shall be binding on the Municipality and on the persons and institutions to which it applies.“Calendar year” shall mean 12 consecutive months of a financial year(s).“Category” –(a)in relation to a property, means a category of properties determined in terms of section 8(2) of the Municipal Property Rates Act;(b)in relation to the owners of property, means a category of owners determined in terms of section 15(2) of the Municipal Property Rates Act.“Chief Financial Officer” means the person appointed as the Chief Financial Officer of the Municipality, or his or her nominee.“Consumer Price Index” shall mean the CPIX as determined and gazetted from time to time by the South Bureau of Statistics.“Consolidated Account” means an account which is a consolidation of any separate accounts of a person who is liable for payment to the Municipality.“Council” means the Council of the Hessequa Municipality.“Councilor” shall mean a member of the Council of the Municipality.“Credit Control” means all the functions relating to the collection of monies owed by ratepayers and the users of municipal services.“Customer” means the occupier of any premises to which the Municipality has agreed to supply or is actually supplying municipal services, or if no occupier can be identified or located, then the owner of the premises and includes any customer of the Municipality.“Day/Days” means calendar days, inclusive of Saturdays, Sundays and public holidays.“Debt Collectors” means an external person or entity appointed by the Municipality to collect monies due and payable to the Municipality, subject to the conditions contained herein.“Defaulter” means any person who owes arrears to the Municipality.“Delivery Date” shall mean the date on which the periodic account is delivered to the customer or 3 days after the date the account was posted, whichever is the first.“Domestic Customer or User” of municipal services shall mean the person or household which municipal services are rendered in respect of “residential property” as defined below.“Due Date” in relation to -(a)rates due in respect of any immovable property, means:-(i)the twentieth (20th) day of September of the financial year for which such rate is made, in the case where rates are levied on an annual basis;(ii)the date for payment indicated on the account, in the case where rates are levied on a monthly basis; or(iii)any other date determined by Council in terms of a public notice in the Provincial Gazette, and(b)service charges due in respect of any immovable property, means the date for payment indicated on the account, provided that the due date for any service charges means the twentieth (20th) day of September in the case where service charges are levied annually; and(c)should such day fall on a Saturday, Sunday or public holiday the due date shall be the next working day.“Dwelling” means a building, structure or place of shelter to live in or conduct business from.“Electricity Charges” means service charges in respect of the provision of electricity.“Farm Property or Small Holding not used for any purpose” – means agricultural property or an agricultural zoned land which is not used for farming purposes, regardless of whether such portion of such property has a dwelling on it which is used as a dwelling and must be regarded as residential property.“Farm Property or Small Holding used for agricultural purpose” – means property that is used for the cultivation of soils for purposes of planting and gathering in of crops; forestry in the context of the planting or growing of trees in a managed and structured fashion; the rearing of livestock and game or the propagation and harvesting of fish, but excludes the use of a property for the purpose of eco-tourism; and in the respect of property on which game is reared, trade or hunted, it excludes any portion that is used for commercial or business purposes. In this definition such properties could also be included within the urban edge of a town;“Financial Year” shall mean the period starting from 1 July in any year and ending on 30 June of the following year.“Immovable Property” also includes -(a)an undivided share in immovable property, and(b)any right in immovable property.“Implementing Authority” means the Municipal Manager or his or her nominee, acting in terms of section 100 of the Local Government: Municipal Systems Act No. 32 of 2000.“Indigent Customer” means the head of an indigent household:-(a)who applied for and has been declared indigent in terms of Council's Indigent Support Policy for the provision of services from the Municipality; and(b)who makes application for indigent support in terms of Council's Indigent Support Policy on behalf of all members of his or her household;“Indigent Policy” means the Indigent Policy adopted by the Council of the Municipality.“Indigent Support Programme” means a structured program for the provision of indigent support subsidies to qualifying indigent customers in terms of the Council's Indigent Policy.“Integrated Development Plan” shall mean a plan formulated and approved as envisaged in Section 25 of the Municipal Systems Act 2000, as amended.“Industrial Property” – means property used for construction, repair, trade or manufacturing, production, assembly or processing of finished or partially finished products from raw materials or fabricated parts on such a large scale that capital and labour are significantly involved, and includes any office or other accommodation on the same property, the use of which is incidental to such activity;“Interest” means the charge levied on arrears, calculated as the prime rate, charged by the bank which holds the Municipality’s primary bank account, plus one percent or such other percentage as may be determined by Council from time to time. (See clause 19).“Local Community” – in relation to the Municipality –(a)means that body of persons comprising –(i)the residents of the Municipality;(ii)the rate payers of the Municipality;(iii)any civic organisations and non-governmental, private sector or labour organisations or bodies which are involved in local affairs within the Municipality; and(iv)visitors and other people residing outside the Municipality, who, because of their presence in the Municipality, make use of services or facilities provided by the Municipality; and(b)includes, more specifically, the poor and other deprived sections of such body of persons;“Manager Income” Means the Senior Official in a division of the Municipality’s Finance Department, overall responsible for the collection of monies owed to the Municipality and/or any other official to whom he/she has delegated duties and responsibilities in terms of this By-law.“Market Value” – in relation to a property, means the value of the property determined in accordance with section 46 of the Municipal Property Rates Act;“Month” means one of twelve months of a calendar year.“Monthly Average Consumption” means the monthly average consumption in respect of that property calculated on the basis of consumption over the preceding or succeeding twelve months.“Multiple purposes” – in relation to a property, means the use of a property for more than one purpose as intended in section 9 of the Municipal Property Rates Act.“Municipality” or “Municipal Area” shall, where appropriate, mean the geographic area, determined in terms of the Local Government: Municipal Demarcation Act No. 27 of 1998 as the municipal area pertaining to the Municipality.“the Municipality” means Hessequa Local Municipality.“Municipal Council” or “Council” shall mean the municipal council of Hessequa Local Municipality as referred to in Section 157(1) of the Constitution.“Municipal Pay Point” means any municipal office in the area of jurisdiction of the Municipality designated by Council for such purposes, or any such other places as the Chief Financial Officer may from time to time designate.“Municipal Manager” means the Municipal Manager of the Hessequa Municipality or his or her nominee acting in terms of power delegated to him or her by the said Municipal Manager with the concurrence of the Council.“Municipal Services” means services provided either by the Municipality, or by an external agent on behalf of the Municipality in terms of a service delivery agreement.“Municipal Tariff” shall mean a tariff for services which the Municipality may set for the provision of a service to the local community, and may include a surcharge on such service. Tariffs for major services shall mean tariffs set for the supply and consumption or usage of electricity, water, sewerage and refuse removal, and minor tariffs shall mean al other tariffs, charges, fees, rentals or fines levied or imposed by the Municipality in respect of other services supplied including services incidental to the provision of the major services.“Occupier” means any person who occupies, controls or resides on any premises, or any part of any premises without regard to the title under which he or she so occupies it.“Open Space” - means land that is used as a park, garden, for passive leisure or maintained in its natural state and that is zoned as open space.“Owner” in relation to immovable property means -(a)the person in whom is vested the legal title thereto provided that:-(i)the lessee of immovable property which is leased for a period of not less than thirty years, whether the lease is registered or not, shall be deemed to be the owner thereof;(ii)the occupier of immovable property occupied under a service servitude or right analogous thereto, shall be deemed to be the owner thereof;(b)if the owner is dead or insolvent or has assigned his or her estate for the benefit of his creditors, has been placed under curator ship by order of court or is a company being wound up or under judicial management, the person in whom the administration of such property is vested as executor, administrator, trustee, assignee, curator, liquidator or judicial manager, as the case may be, shall be deemed to be the owner thereof;(c)if the owner is absent from the Republic or if his address is unknown to the Municipality, any person who as agent or otherwise receives or is entitled to receive the rent in respect of such property, or if the Municipality is unable to determine who such person is, the person who is entitled to the beneficial use of such property.“Person” means a natural and juristic person, including any department of state, statutory bodies or foreign embassies.“Premises” includes any piece of land, the external surface boundaries of which are delineated on:(a)A general plan or diagram registered in terms of the Land Survey Act, (9 of 1927) or in terms of the Deed Registry Act, 47 of 1937; or(b)A sectional plan registered in terms of the Sectional Titles Act, 95 of 1986, and which is situated within the area of jurisdiction of the Municipality.“Prescribed” means prescribed by this By-law and where applicable by Council or the Municipal Manager.“Prescribed debt” means debt that becomes extinguished by prescription in terms of the Prescription Act 68 of 1969.“Private Open Space” means land that is privately owned and used for practising of sport, play-or leisure facilities or used as a botanical garden, cemetery or nature area and which is joined as Private Open Space.“Property” – means immovable property registered under separate title in terms of the provisions of the Deeds Registries Act, 1937 (Act 47 of 1937) in the name of a person, including, in the case of a sectional title scheme, a sectional title unit registered in the name of a person and includes unregistered land if the right of ownership can be determined;“Rateable Property” shall mean property on which the Municipality may in terms of Section 2 of the Municipal Property Rates Act 2004 levy a rate, but excluding property fully excluded from the levying of rates in terms of Section 17 of that Act.“Ratepayer” shall mean a person who is liable to the Municipality for the payment of (a) rates on property in the Municipality; (b) any other tax, duty or levy imposed by the Municipality; and/or (c) fees for services provided either by the Municipality or in terms of a service delivery agreement.“Rates” means a municipal rate on property envisaged in section 229 (1) of the Constitution read with the Local Government: Municipal Property Rates Act 6 of 2004 and the Local Government: Municipal Finance Act 56 of 2003.“Rebate” in relation to a rate payable on a property, shall mean a discount granted in terms of Section 15 of the Municipal Property Rates Act, 2004 on the amount of the rate payable on the property.“Reduction” - in respect of a rate payable on a property, means the lowering of the amount for which the property was valued and the rating of that property at that lower amount.“Refuse Charges” means service charges in respect of the collection and disposal of refuse.“Registered Owner” means that person, natural or juristic, in whose name the property is registered in terms of the Deeds Registry Act, no. 47 of 1937.“Responsible Person” means any person other than the registered owner of an immovable property who is legally responsible for the payment of municipal service charges.“Residential Property” shall mean a property included in the valuation roll in terms of Section 48 (2)(b) of the Municipal Property Rates Act, 2004 as residential.“Residential Property” furthermore means improved property that: -(a)is used predominantly (60% or more) for residential purposes, including any adjoining property registered in the name of the same owner and used together with such residential property as if it were one property.Any such grouping shall be regarded as one residential property for rate rebate or valuation reduction purposes, if still used dominantly for residential purposes;(b)is a unit registered in terms of the Sectional Title Act and is used predominantly for residential purposes;(c)is owned by a share-block company and is used predominantly for residential purposes;(d)is a residence used for residential purposes situated on a property used for educational purposes;(e)is property which is included as residential in a valuation list in terms of section 48(2)(b) of the Municipal Property Rates Act, 2004;(f)are retirement schemes and life right schemes used predominantly (60% or more) for residential purposes;vacant properties (empty stands), hotels, hostels, old-age homes and accommodation establishments, irrespective of their zoning or intended use, have been specifically excluded from this property category.“Service Charges” means the fees levied by the Municipality in terms of its Tariff By-law for any municipal services rendered in respect of an immovable property and includes any penalties, interest or surcharges levied or imposed in terms of this By-law.“Service Delivery Agreement” means an agreement between the Municipality and an institution or persons mentioned in section 76(b) of the Local Government: Municipal Systems Act 32 of 2000.“Sewerage Charges” means service charges in respect of the provision of sewerage collection and treatment of infrastructure.“Small Holding” means(a)all agricultural zoned land units situated within an urban region with an area of one to three hectares; or(b)any agricultural zoned land unit situated outside an urban region with an area of three hectares or less.“State Owned Property” excludes any property included in the valuation roll under the category ‘residential property’ or ‘vacant land’.“Sundry Customer Accounts” means accounts raised for miscellaneous charges for services provided by the Municipality or charges that were raised against a person as a result of an action by a person, and were raised in terms of Council's policies, bylaws and decisions.“Supervisory Authority” means the Executive Mayor of the Municipality or his or her nominee, acting in terms of Section 99 of the Municipal Systems Act 32 of 2000.“Tariff” means the scale of rates, taxes, duties, levies or other fees which may be imposed by the Municipality in respect of immovable property and/ or for municipal services provided.“Tariff Policy” means a Tariff Policy adopted by the Council in terms of Section 74 of the Local Government: Municipal Systems Act 32 of 2000.“User” means the owner or occupier of a property in respect of which municipal services are being rendered.“Vacant Property” – means any land without any improvements thereon.“Water Charges” means service charges in respect of the provision of water.3. Principles
4. Supervisory authority
5. Implementing authority
6. Unsatisfactory levels of indebtedness
7. Application for the provision of municipal services
8. Deposits and guarantees
9. Termination of services
10. Accounts and billing
11. Rates
12. Electricity charges
13. Water charges
14. Refuse and sewer charges
15. Sundry customer accounts
16. Final accounts
Upon receipt of a customer's application for the termination of municipal services, the Municipality shall:-17. Levying and metering of municipal services
18. Payments of accounts
19. Interest on arrear debt
20. Enquiries and appeals
21. Limitation, disconnection or discontinuation of supply
22. Recovery of rates from owners, tenants, occupiers and agents
23. Debt collection
24. Arrangements to pay arrear debt
25. Indigent customers
26. Debt of absconded owners
The occupant of the property must sign an agreement in which the occupant agrees to pay all property rates and service charges that are to be raised on the property of the absconded registered owner's property.27. Staff and councillors - payment of arrears
28. Administration and debt review orders - payment of arrears
29. Write off of irrrecoverable debt
30. Certificates required for tenders
31. Prima facie evidence
A certificate endorsed by the municipal manager, reflecting the amount due and payable to the Municipality, shall upon mere production thereof be accepted by any court of law as prima facie evidence of the indebtedness reflected therein.32. Offences and penalties
33. Reporting on performance management
34. Property management leases
The procedure for the recovery of arrears on leases will be in accordance with the conditions contained in the relevant lease contract.35. Temporary workers
Where the Municipality provides temporary employment to members of the community who are in arrears with payments for municipal rates and services they will be required to enter into a written agreement to pay 50% of their gross remuneration towards these arrears of debt.36. Power of entry and inspection
37. Notices
38. By-laws
The Municipality may promulgate By-Laws regarding:-39. Review of this By-law
40. Repeal of by-laws
41. Short title and commencement
This By-law is the By-law to regulate Customer Care Management, Credit Control and Debt Collection and comes into effect on 1 July 2014Cited documents 10
Legislation 10
- Constitution of the Republic of South Africa, 1996
- Customer Care Management, Credit Control and Debt Collection
- Customer Care and Revenue Management
- Deeds Registries Act, 1937
- Electricity Regulation Act, 2006
- Local Government: Municipal Finance Management Act, 2003
- Local Government: Municipal Systems Act, 2000
- Prescription Act, 1969
- Sectional Titles Act, 1986
- Water Services Act, 1997