Some Serious Questions for BJAC

Why Is the Proposed Levy Based on One Amount for All?

In considering the proposed BJAC Referendum document there are still a number of unanswered questions that need satisfactory answers.  

Phase 1 made up of a single reef and portion of beach is going to cost between R15 and R17 million for the first year.  In order to complete the Pilot Project it has been decided by BJAC to ask all property owners to contribute a flat amount of R5000 in Phase 1. This amount will be able to be paid as a lump sum or in 12 equal instalments.  However, there are major differences in both market and rateable values between a beach front/canal properties and a vacant stand towards the back of Santareme with no view.  In addition, stand sizes vary significantly in different parts of the Village with the white and thatch section having an average of 1000 m2 stands with the average Santareme stands being 70% or less of this by area.

The original SFB Beach Trust levy amounts were based on municipal valuations on which rates are calculated and which was considered a fairer and more equitable approach.  In terms of the latest available information some of the larger sea facing properties have municipal valuations around R 2.2 million with undeveloped stands towards the back of Santareme having valuations of around R55k.  There is a difference of up to x 40 between the two ends of the values spectrum.   However, the average difference is more like 1:25 which is still significant. 

Details of the breakdown by municipal valuation out of a total of 2577 on the existing valuation roll is as follows:

In considering the above just over 50% of all owners fall into the lower categories with 39% falling under the R 2000 cut off.  It is obviously unfair that those with the undeveloped stands should be asked to pay the same amount as those with large homes in more favoured positions. Comparative differences based on municipal valuation are around R 850 p.a. for an undeveloped  Santareme stand of around 600 m2 on St Francis Drive and R 34 000 p.a. for a large consolidated double seafront property of over 1000 m2, also in Santareme.  

Based on the above figures if the 40% of owners who would pay R 2000 or less based on property valuations vote NO in the referendum, it will be lost at that point as BJAC are looking for a 66% positive poll to proceed with Phase 1.   

Alan Tonkin

St Francis Bay

22 June, 2007

If you wish to check the amount of your levy, either on a one-off or monthly basis over 12 months  Click here....  Please note that the figures quoted have been obtained from the current Kouga Municipality property rating roll.  The numbers are based on land and improvements (where applicable) and are calculated on the basis of the R17.0  million funding required for the Pilot Phase of the Beach Project.