Innovative COVID-19 Relief Plan for Infrastructure Development in Msunduzi Municipality
Msunduzi Municipality introduces a comprehensive COVID-19 relief plan to boost infrastructure development, focusing on upgrading the electricity network. Through initiatives like advanced payments and arrear debt relief campaigns, the municipality aims to engage customers, including big businesses, in supporting the community's growth. By offering incentives and discounts, the plan seeks to raise funds efficiently and drive sustainable progress.
- COVID-19 Relief
- Infrastructure Development
- Msunduzi Municipality
- Advanced Payments
- Arrear Debt Relief
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Presentation Transcript
Background The Municipal Manager requested that the Budget & Treasury Business Unit establish a method to raise the funds to be used for infrastructure [electricity network] development with the Municipality. A meeting between the City Manager and the Budget & Treasury Business Unit was held on 20 January 2021 where the proposals as presented in this report were discussed. The Municipality has implemented a number of revenue enhancement initiatives that has not yielded the required and expected outcomes. These were Council Wide Amnesty Project, Black Friday s initiatives. The challenge with most of these initiatives has always been implementation. The proposed initiative, in order for it to be successful will need a well formulated and fully resources supported implementation plan. The proposed campaign will run from 1 March 2021 to 31 December 2021 2
ADVANCED PAYMENTS Msunduzi Municipality intends to offer a prime lending rate [currently sitting @7%] plus 1% [total benefit 8%] to customers who will register for the program of paying their accounts in advance (12 months upfront) and the Municipality then debit their credit balance monthly to pay for the customer services. There has been extensive talk with big business about this and the Municipality has established that there is an appetite for this kind of offer. In order not to exclude any customer who may wish to participate, the initiative will be open to all customers on condition that they apply for inclusion to the initiative. 3
ADVANCED PAYMENTS The funds received from this initiative will be ring-fenced and utilized in the infrastructure development in particular electricity network upgrades. The Municipality will sign individual agreements with each and every customer on the manner in which the funds will be repaid back to the customer account Dispensed monthly to pay off the municipal account. Big business has indicated that they hold reserves in their investment portfolio that they would wish to assist the Municipality without losing interest on their money, hence the interest rate benefit of 8% 4
ARREAR DEBT The Revenue Business Unit is proposing a COVID 19 relief campaign for a period of one year. The COVID 19 relief campaign will be open to all categories of debtors with arrear balances as at 30 September 2020. The COVID 19 relief campaign will be applied as follows: Business Debtors 25% discount on the services arrear balance as at 30 September 2020 and 100% discount on the rates interest. Government Debtors 100% discount on the rates interest and collection charges. 5
ARREAR DEBT Household Debtors 30% discount on the services arrear balance as at 30 September 2020 and 100% discount on the rates interest. Other Debtors 30% discount on the services arrear balance as at 30 September 2020 and the 100% discount on the rates interest. Indigent Debtors, Public Benefit, Religious, Non Profit Organizations 50% discount on the services arrear balance as at 30 September 2020 and the 100% discount on the rates interest. All debt to be paid with 50% deposit and the balance of the debt (less the discounted amounts) to be paid in three (3) equal instalments. 6
ARREAR DEBT Discounts to be applied to the account after the last instalment is paid or after the debt is settled (if paid in a single instalment). Debtors will complete a new service application form and supply copies of the identity document of the account holder. Debtors will accept a review of their deposit if the account is paid on or before the last day of the month for the next three (3) months after receiving the discount. All rates capital balances are paid in full and are not discounted. No Discounts applied for properties being transferred/sold/executed/donated or for a period of six (6) months after receiving a discount. 7
Project Plan AT RISK STATUS PRIORITY DEADLINE TASK DESCRIPTION ASSIGNED TO DELIVERABLE % DONE Configuration of SAP to accommodate upfront rates payment and settle monthly rates instalment SAP Stream Lead In Progress High 10 February 2021 Configuration of SAP Configuration of SAP 0% Newspaper & Social Media Advert of the Project In Progress High 31 March 2021 Advertise the Project Marketing Advertise the Project 0% Design of a comprehensive application form so as to receive as much data from customers Design of a comprehensive guide which will demonstrate how the COVID 19 Relief Campagin will work Applications can be received from Debtors Confirm Internal Flow of the Process of Application fo COVID 19 Relief Approval from Full Council for COVID 19 Relief Project Set up of a dedictate email address to receive applications and a dedicated Whats App Number to serve as a help desk Mayor & Senior Management to release press statements advising Public of Campagin Auto Calculator to calculate the amounts payable and amounts discounted Design of Email signature that will advise debtors of the campagin Approval from SMC for COVID 19 Relief Project Final Draft Design of Application Form In Progress High 15 February 2021 Design of Application Form Revenue 0% In Progress High 15 February 2021 Design of Detailed Guide Revenue Design of Detailed Guide 0% : In Progress High 01 April 2021 Application Process Open Revenue Application Process Open 0% Confirm Internal Flow of the Process of Application fo COVID 19 Relief Approval from Full Council for COVID 19 Relief Project Set up of a dedictate email address to receive applications and a dedicated Whats App Number to serve as a help desk Mayor & Senior Management to release press statements advising Public of Campagin In Progress High 01 March 2021 Confirm Internal Flow Revenue 0% In Progress Medium 28 February 2021 Council Approval of Project Revenue 0% Setting up of Email address & Whats App Helpline Number In Progress Medium 15 February 2021 Revenue 0% In Progress Medium 31 March 2021 Press Release Marketing 0% In Progress Medium 15 February 2021 Development of Auto Calculator Revenue Development of Auto Calculator 0% Design of Email signature that will advise debtors of the campagin In Progress Medium 28 February 2021 Design of Email Signature Marketing 0% In Progress High 02 February 2021 SMC Approval of Project Revenue SMC Approval of Project 0% 8
THE END THANK YOU 9
