PROVINCIAL NOTICE ____________ [No.

of 2010]

NOTICE IN TERMS OF SECTION 14(2)(b)(i) OF THE LOCAL GOVERNMENT M!NICIPAL S"STEMS ACT# 2000 P!$LICATION STAN%AR% IN%IGENT S!PPORT $"&LA' [1.] I, MJ Zwane, Member of the Executive Council responsible for Cooperative overnance !ra"itional #ffairs an" $uman %ettlements in the &ree %tate 'rovince in terms of %ection 1()*+)b+ of the ,ocal overnment- Municipal %tructures #ct, *... )#ct /* of *...+ hereb0 publish stan"ar" "raft b01laws as set out in the %che"ule hereto for public comment. !he public an" intereste" parties are invite" to submit comments in writin2 on these propose" stan"ar" "raft b01laws b0 not later than /. "a0s from the "ate of publication of this notice, to-1 !he #ctin2 3eput0 3irector1 eneral 3epartment of ,ocal overnment ,ocal overnment 4ranch '5 4ox *11 4,5EM&56!EI6 7/.1 Comments ma0 also be submitte" b0 facsimile to number .81 (.9 :9/* or b0 e1mail to pvil;oen<l2h.f.s2ov.=a SCHE%!LE IN%IGENT S!PPORT $"&LA' PREAM$LE 'HEREAS 6ational overnment has a constitutional "ut0 to provi"e an e>uitable share of nationall0 raise" revenue to municipalities. AN% 'HEREAS the aforesai" e>uitable share enables municipalities to provi"e basic services to poorer communities in an affor"able manner an" improve a"ministrative capacit0 to ensure "emocratic 2overnance at the local level. AN% 'HEREAS %ection 9( of the ,ocal overnment- Municipal %0stems #ct *...,) #ct 6o /* of *...+ re>uires a Municipal Council to a"opt an" implement a !ariff 'olic0 which must, inter alia, ta?e into consi"eration the extent of subsi"isation of tariffs for poor househol"s. !he Council hereb0 publishes the followin2 "raft b01laws%EFINITIONS 1. In the interpretation of these b01laws, the sin2ular inclu"es the plural an" vice versa an" the followin2 wor"s an" expressions must have the meanin2s respectivel0 assi2ne" to them hereun"er, unless such meanin2s are repu2nant to or inconsistent with the context in which the0 occur-1 (Co)*+i,( means the Council of the Municipalit0 of @@@@@@. an" inclu"es an0 "ul0 authorise" political structure or office bearer as "efine" in the ,ocal overnment- Municipal &inance Mana2ement #ct 8: of *../ an"Aor an0 "ul0 authorise" official of the CouncilB (Ho)-./o,0 I*+o1.( means all sources of income bein2 formal an"A or informal of nature inclu"in2, but not restricte" to, salaries, revenue 2enerate", pensions, fixe" "eposits, investments, state subsi"ies an" or 2rants, private financial supportAcontributions from outsi"e the in"i2ent househol"B (I*0i2.*3( means an in"i2ent househol" whose total househol" income is as "etermine" b0 Council annuall0 "urin2 the bu"2et process.

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(I*0i2.*3 0.b3o4( means the hea" of an in"i2ent househol", inclusive of "estitute in"i2ents an" in"i2ents, bein2 ol" a2e pensioners, the unemplo0e" an" househol"s with a total monthl0 income as "etermine" in the In"i2ent %upport 'olic0)a+ who applies for the provision of services from the municipalit0B an" )b+ who ma?es application for in"i2ent support in terms of these b01lawsB an" )c+ who is re2ar"e" as the representative of all members of his or her househol" (I*0i2.*3 Ho)-./o,0-( inclu"e all in"ivi"ual resi"in2 at the resi"ential premises of the in"i2ent "ebtor, inclusive of "estitute in"i2ent an" in"i2ents, b0 whom an" for which application is ma"e, which premises has access to municipal servicesB (I*0i2.*3 5*0 F4.. $5-i+ S.46i+.- S)b-i07 Po,i+7( means the polic0 for the provision of in"i2ent subsi"ies to >ualif0in2 in"i2ent "ebtors in terms of the CouncilCs polic0 relatin2 to the followin2)a+ &ree basic electricit0 )b+ &ree basic water )c+ %ubsi"ise" sewera2e rates an" refuse )"+ #ssiste" arrear "ebt recover0 pro2ramme as "etermine" b0 Council annuall0 "urin2 the bu"2et process, in line with 6ational norm an" 2ui"elinesB M)*i+i85,i37 means the @@@@@@@.. ,ocal Municipalit0 establishe" in terms of %ection 1* of the Municipal %tructures #ct, 119 of 177D, an" inclu"es an0 political structure, political office bearer, councillor, "ul0 authorise" a2ent thereof or an0 emplo0ee thereof actin2 in connection with these b01laws b0 virtue of a power veste" in the municipalit0 an" "ele2ate" or sub1"ele2ate" to such political structure, political office bearer, councillor, a2ent or emplo0eeB (M)*i+i85, M5*52.4( means the Municipal Mana2er of the @@@@@ Municipalit0 or his or her nominee actin2 in terms of power "ele2ate" to him or her b0 the sai" Municipal Mana2er with the concurrence of the CouncilB (Po6.437( is "efine" with reference to povert0 line i.e. if a househol" earns 2ross income lower than a set amount that househol" an" its members are "eeme" to be livin2 in povert0. IN%IGENT S!PPORT POLIC" *. )1+ !he Council must a"opt an In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0, which must embo"0 an" provi"e proce"ures an" 2ui"elines for the subsi"isation of basic services an" tariff char2es to in"i2ent househol"s in its municipal area. )*+ !he ob;ect of the In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 referre" to in %ection * must be to ensure)a+ !he provision of basic services to the communit0 in a sustainable manner within the financial an" a"ministrative capacit0 of the CouncilB an" )b+ !he provision of proce"ures an" 2ui"elines for the subsi"isation of basic service char2es to in"i2ent househol"s. G!I%ING PRINCIPLES /. )1+ !he followin2 2ui"in2 principles must be containe" in the In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 referre" to in %ection *)a+ Eelief will be provi"e" b0 the Council to re2istere" resi"ential consumers of services who are "eclare" in"i2ent b0 the Council. )b+ !he Council must, wherever possible, ensure that an0 relief provi"e" in terms of this b0law an" its polic0 is constitutional, practical, fair, e>uitable an" ;ustifiable in or"er to avoi" the alienation of an0 2roup of househol"s. )c+ 3ifferentiation between resi"ential consumers must, in accor"ance with the 40laws, 'olicies an" resolutions of the Council an" le2islation, be permitte". )"+ 3ifferentiation must also be permitte" in respect of the level of service provi"e" to or to be provi"e" to in"i2ent househol"s. )e+ !he application of the in"i2ent support subsi"0 for minimum service levels shoul" not result in the creation of a massive bureaucratic a"ministration that woul" not be cost effective to implement. )f+ # "ifferentiation must be ma"e between those househol"s who cannot affor" to pa0 for basic services an" those househol"s who refuse to pa0 for such services. )2+ !he pa0ment for services ren"ere" shoul" be affor"able for the in"i2ent.

)h+ )i+ );+ )?+ )l+ )m+ )n+ )o+ )p+ )>+ )r+ )s+ )t+ )u+

!he In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 will appl0 "urin2 each financial 0ear of Council. &inancial support to the in"i2ent will be "epen"ent upon the availabilit0 of fun"s to enable the Council to provi"e such support. !he Council must, annuall0, review an" amen" the >ualification criteria for in"i2ent support provi"e" b0 it if an" when necessar0. !he collective or ;oint 2ross income of members of in"i2ent househol"s will alwa0s be ta?en into account to "etermine the level of financial support to be 2rante" to in"i2ent househol"s. In"i2ent househol"s must formall0 appl0 on the prescribe" application form for in"i2ent support an" will >ualif0 for such support accor"in2 to prescribe" criteria or principles to be lai" "own b0 the Council. !he househol" income must be correctl0 reflecte" on the application form re>uestin2 in"i2ent support. !he applicant who si2ns the prescribe" application form is be re2ar"e" as the in"i2ent "ebtor an" the representative of the in"i2ent househol". #fter the application form for in"i2ent support has been complete" b0 an in"i2ent "ebtor it must be assesse" in terms of the polic0. #ll approve" in"i2ent "ebtors shoul" be re2istere" on a municipal "atabase s0stem. !he onus will be on the approve" in"i2ent "ebtor to inform the Council of an0 chan2e in his or her status or personal househol" circumstances. #ll in"i2ent househol"s shoul" be re1evaluate" after a perio" of six months or such perio" as the Council ma0 "etermine to assess the provision of continue" basic services an" in"i2ent support to them. 3isciplinar0 measures "eci"e" b0 the Council, shoul" be impose" on in"i2ent "ebtors who misuse the in"i2ent support polic0 of the Council an"Aor provi"e incorrect information to the Municipalit0. #n approve" communit0 communications pro2ramme, embo"0in2 the principles of transparenc0 an" fairness, must be implemente" in respect of the in"i2ent support polic0. %?ills !rainin2 an" other e"ucation relate" pro2rammes shoul" be supporte" to "evelop the in"i2ent to become self 1 sufficient an" thereb0 re"uce the rate of in"i2ence.

9!ALIFICATION# ACCEPTANCE AN% REGISTRATION CRITERIA (. !he >ualification, acceptance an" re2istration criteria for in"i2ent support an" the services >ualif0in2 for such support must be "etermine" b0 Council 'olic0 as reviewe" annuall0 "urin2 the bu"2et process. PROVISION OF IN%IGENT S!PPORT S!$SI%IES 8. In"i2ent %upport %ubsi"ies will be provi"e" b0 the Council on the followin2 basis)a+ Eelief will onl0 be provi"e" to those in"i2ent househol"s who appl0 an" >ualif0 therefore. )b+ !he relief must be si2nificant so as to relieve the recipient of an in"i2ent subsi"0 from the financial har"ship of pa0in2 full0 for services receive" from the Municipalit0 for a specific perio". )c+ #ll re2istere" in"i2ents will be char2e" the "etermine" subsi"ise" tariff or char2e for a service. )"+ !he in"i2ent will receive a monthl0 account, which will reflect the amount "ue an" pa0able. )e+ !he subsi"ise" amount will be reflecte" a2ainst the in"i2ent subsi"0 vote. )f+ %ub;ect to annual resubmission b0 the applicant of the application to Council on the "ate as "etermine" b0 Council. $ALANCE ON SERVICE CHARGES# TARIFFS AN% FEES :. Council shall implement a proce"ure to assess an" recover an0 arrear "ebt "ue b0 an in"i2ent, after "e"uction of the in"i2ent support subsi"0, from him or her in accor"ance with the Cre"it Control 'olic0 of the Council.

IN%IGENT STAT!S 9. !he Council must not amen", alter, with"raw, or suspen" in terms of these b0laws an" its polic0 the in"i2ent househol"s status without first havin2 forwar"e" notification thereof to the sai" in"i2ent househol". SPECIAL TARIFF FOR SERVICES D. !he Council ma0 "etermine special tariffs for in"i2ent househol"s, sub;ect to the availabilit0 of fun"s an" compliance with prescribe" criteria for municipal services an" amenities RESPONSI$ILITIES OF M!NICIPAL MANAGER 7. It must be the responsibilit0 of the Municipal Mana2er )a+ !o create, maintain an" up"ate a re2ister of all "ebtors receivin2 in"i2ent support subsi"ies from the Council in terms of these b01lawsB )b+ !o reflect the in"i2ent status of "ebtors in the accountin2 recor"s of the Municipalit0B )c+ !o a"vise an" ?eep in"i2ent "ebtors informe" of the approval, amen"ment, suspension or with"rawal of an application for in"i2ent support in terms of these b0laws an" the con"itions un"er which such support will be 2rante", inclu"in2 the renewal of in"i2ent support applicationsB )"+ !o report an0 instances of misuse of the CouncilCs In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 to the CouncilB )e+ !o report at re2ular intervals as ma0 be re>uire" b0 Council on the pro2ress or otherwise of the implementation of the CouncilCs In"i2ent an" &ree 4asic %ervices %ubsi"0 %upport 'ro2ramme. )f+ !o publish a cop0 of these b01laws, polic0 an" an0 amen"ments thereto on the official website of the Municipalit0. $!%GETING FOR IN%IGENT S!PPORT 1.. )1+ !he Council must annuall0 bu"2et for the total in"i2ent subsi"0 to be 2rante" to in"i2ent "ebtors in terms of these b01laws. %uch amount must, upon approval of the bu"2et of the Council, be reflecte" a2ainst a separate vote in the name of in"i2ent subsi"0. )*+ !he total value of in"i2ent subsi"ies for all subsi"ise" services must be reflecte" a2ainst such in"i2ent subsi"0 vote on a monthl0 basis. REVIE' AN% AMEN%MENT OF IN%IGENT S!PPORT POLIC" 11. )1+ !he Council has the "iscretionar0 power to amen" an0 clause, stipulation or tariff embo"ie" in its In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 in the interests of all the parties concerne" at the annual bu"2etar0 review of Council policies in con;unction with the consi"eration of the annual bu"2et of the Council. )*+ In"i2ent an" &ree 4asic %ervices %ubsi"0 'olic0 a"opte" in terms of these b0laws must be re2ar"e" as a bu"2et1relate" polic0 an" must be reviewe" on an annual basis b0 the Council "urin2 the annual bu"2et review. #n0 amen"ment thereto must be consi"ere" an" a"opte" in con;unction with the a"option of the annual bu"2et of the Council. OFFENCES 1*. #n0 in"i2ent househol" who a+ 5bstructs or hin"ers the Council in the exercise of its powers or performance of functions or "uties un"er these b01lawsB )b+ Fses or interferes with Council e>uipment or consumption of services supplie"B )c+ !ampers or brea?s an0 seal on an0 meter installe", or with the water restrictor s0stem installe" or on an0 e>uipment belon2in2 to the Council, or for an0 reason as "etermine" b0 the Chief &inancial 5fficer causes interference with the service provision an" the service use"B )"+ &urnishes mislea"in2 information ?nowin2 it to be false or mislea"in2B )e+ Contravenes or fails to compl0 with a provision of these b01lawsB

Is 2uilt0 of an offence an" be liable upon conviction to a fine not excee"in2 E1... or to imprisonment for a perio" not excee"in2 three months or both such a fine an" imprisonment an", in a""ition, ma0 be char2e" for usa2e, as estimate" b0 the Chief &inancial 5fficer base" on avera2e usa2e "urin2 the previous six months or as ma0 be "etermine" b0 resolution of the Council from time to timeB NOTICES AN% %OC!MENTS 1/. )1+ # notice or "ocument issue" b0 the Council in terms of these b01law is "eeme" to be "ul0 issue" if si2ne" b0 an emplo0ee "ul0 authori=e" b0 the Council. )*+ If a notice is to be serve" on a person in terms of these b01laws, such service must be effecte" b0)i+ 3eliverin2 the notice to him or her personall0 )ii+ 40 "eliverin2 the notice at his or her resi"ence or to a person apparentl0 not less than sixteen 0ears of a2e an" apparentl0 resi"in2 or emplo0e" thereB )iii+ If he or she has nominate" an a""ress for le2al purposes, b0 "eliverin2 the notice to such an a""ressB or )iv+ 40 re2istere" or certifie" post a""resse" to his or her last ?nown a""ress. )v+ If service cannot be effecte" in terms of the aforesai" subsections b0 affixin2 it to the principal "oor of entr0 to the premises, or "ispla0in2 it on a conspicuous place on the lan" A!THENTICATION OF %OC!MENTS 1(. )1+ Ever0 or"er, notice or other "ocument re>uirin2 authentication b0 the Council is sufficientl0 authenticate", if si2ne" b0 the Municipal Mana2er or b0 a "ul0 authori=e" emplo0ee of the CouncilB )*+ 3eliver0 of a cop0 of the "ocument must be "eeme" to be "eliver0 of the ori2inal. RESPONSI$ILIT" OF COMPLIANCE 'ITH THESE $"&LA'S 18. !he in"i2ent "ebtor is responsible for ensurin2 compliance with these b01laws in respect of all or an0 matters relatin2 to the in"i2ent support 2rante". !he in"i2ent "ebtor is responsible for compliance with these b01laws an" polic0 in respect of matter relatin2 to the use of an0 water, electricit0, sanitation installation an" other services provi"e" b0 Council. AVAILA$ILIT" OF $"&LA'S 1:. )1+ # cop0 of these b01laws must be inclu"e" in the municipalities Municipal Co"e as re>uire" in terms of section 18 of the Municipal %0stems #ct, *... ) #ct 6o /* of *...+ an" shall be "ispla0e" on the official website of the municipalit0 )*+ # cop0 of these b01laws must be available for inspection at the municipal offices at all reasonable times. )/+ # cop0 of the b01laws ma0 be obtaine" a2ainst pa0ment of a prescribe" fee from the Council. APPEALS AGAINST %ECISIONS OF THE CO!NCIL 19. #n in"i2ent househol" application, which has been "ecline" ma0 appeal a2ainst such "ecision which appeal proce"ure must be lai" "own within the polic0. SHORT TITLE AN% COMMENCEMENT 1D. !his 40 1 ,aw is calle" the In"i2ent %upport 401,aws, *..... CONFLICT OF $"& LA'S 17. If there is an0 conflict between these b01laws an" an0. !he Cre"it Control an" 3ebt Collection b01 law will prevail if applicable failin2 which these b01laws will prevail. !hese b01laws must be rea" in con;unction with the Cre"it Control an" 3ebt Collection b01law.