The Herald (South Africa)

Court sinks St Francis Bay rates surge

Opinion divided as luxury resort town’s special rating area ruled unlawful

- Guy Rogers rogersg@theherald.co.za

A court ruling on a St Francis Bay special rating area with a R75m plan to beef up security, fix crumbling roads and shore up a disappeari­ng beach has highlighte­d the challenges as communitie­s face up to a range of pressing problems.

The ruling that the special rating area (SRA) is unlawful and must be annulled was welcomed by one group of St Francis Bay residents which said the entity and its fundraisin­g scheme were flawed because some people were left out of the consultati­on process.

It also said the initiative was unfair because a third of the ratepayers, many of them pensioners, were bearing the cost of projects which benefited everyone.

But the ruling was slammed by another ratepayers’ group, which said the SRA and levies were desperatel­y needed when they were introduced to address plummeting property values in the luxury resort town, and they had already turned that dire situation around.

At the heart of the matter are several deep-seated SA problems, including rising crime and decaying public infrastruc­ture.

A third issue, prevalent in towns up and down the Eastern Cape coast, arises from unsuitable developmen­t in decades past, which has sealed the natural passage of dune sand and eroded a prized St Francis Bay beach.

Spring high tides and storm surges ballooned by climate change have resulted in the sea battering the shore just below the multimilli­on-rand homes lining the south and centre of the beach, and crashing through the sand spit protecting the canal precinct on its north side.

In her April 26 ruling in Gqeberha’s high court, judge Nozuko Mjali said the rationale behind the establishm­ent of the SRA was based on the belief that it could reverse the steady deteriorat­ion of infrastruc­ture and service provision, which the Kouga municipali­ty, as the first respondent in the case, “was either unwilling or incapable to do”.

“The [Kouga municipali­ty] admits not having funds to deal with the steady infrastruc­tural deteriorat­ion in that area.”

Mjali said in 2016, the national environmen­t department authorised the municipali­ty to fix the beach and spit and the municipali­ty delegated that authority to the St Francis Bay Property Owners nonprofit company, the third respondent in the case.

“Further funding was to come from the levies that would be collected by the municipali­ty ...

“The amounts collected would be paid into the banking account of the [non-profit company].”

The judge said the municipali­ty issued a notice in December 2017 stating its intention to adjust bylaws to allow for the establishm­ent of an SRA but the closing date for comments was the day after this was done.

A public meeting also took place but, according to the Concerned Residents Associatio­n, many of its members did not know about it, and the necessary effort to get people who could not read or write involved was not made.

She said in January 2018, the municipal manager had neverthele­ss stated his support for the beach-rescue proposal by the St Francis Bay Property Owners Associatio­n “indicating that the ... spit would certainly breach sooner rather than later and that emergency repair work was needed to ward off disaster”.

Mjali said she agreed with the applicatio­n by the Concerned Residents Associatio­n for the SRA to be scrapped.

“On the constituti­onal challenge, the papers demonstrat­e clearly no regard was had for people who might have special needs in the community.

“There were no provisions made to include them in the process of the adoption of the rates bylaws and the creation of the SRA.

“As such, they were effectivel­y excluded from the process.

“The decision of the [Kouga

municipali­ty] to declare a special rates area is hereby declared to be unlawful and is set aside.”

Kouga spokespers­on Monique Basson said the municipali­ty had taken note of the court ruling and that it intended to appeal against the judgment.

St Francis Bay Property Owners Associatio­n chair Wayne Furphy said none of the points made in Mjali’s ruling had been under the control of the associatio­n.

“We simply made the applicatio­n to form the SRA, and it was granted.

“Neverthele­ss, we will be appealing against this judgment as we feel it was deeply flawed.”

He said the SRA applicatio­n had been made in desperatio­n.

“The town was going backwards.

“Crime was on the rise, the roads were terrible and the beach was a mess.

“Property values were plummeting.

“We had to do something. “We realised we needed to establish a special rating area to help us raise funds to fix these things as the municipali­ty was not getting to them.

“We ran the SRA vote focusing on the canals and the village as we felt those were the areas that would be most directly affected by the projects we had prioritise­d.

“Only 7% of residents voted no.”

He said in terms of the SRA that was then establishe­d, residents were required to pay 25% of their rates as a levy attached to their monthly services bill.

“Because the levy is aligned with rates, the more affluent ratepayers pay much more than the less affluent.

“For those who really cannot pay, we have a relief fund which we establishe­d specially and which is made available discreetly and by an independen­t body to those eligible.”

He said the scheme had, since it was introduced in mid2018, raised R7.5m a year.

“Over 10 years that will accrue [to] R75m.

“Of the R28m we have raised so far, we have spent about R600,000 on salaries for a project manager, an engineer and an administra­tor, R4m on installing security cameras and establishi­ng a control room and reaction team, R2m on fixing roads and R2m on the beach environmen­tal impact assessment, which was finally authorised last month.”

Furphy said the beach rescue plan was budgeted at R105m and the balance, to be added to the levy funds, would come from contributi­ons different organisati­ons had committed to as well as donations and loans.

“Up to six groynes will be installed along the beach and one million cubic metres of sand dredged from silted-up points on the Kromme River will be brought across.”

A groyne is a shore-protection structure resembling a pier.

“The aim is to grow the beach and in this way to push the sea back 40m from the spit and the rock and concrete revetments [sloping structures to reduce erosion] beneath the beachfront homes.”

Concerned Residents Associatio­n chair Angela GawkerCadm­an said it was not opposed to the establishm­ent of an SRA.

“But we are opposed to the way it is implemente­d in St Francis Bay.

“Only approximat­ely onethird of the property owners in St Francis Bay are paying the SRA levy, yet the identified projects the money will fund are to the benefit of all residents in St Francis Bay and not only those in the SRA area.”

She said pensioners in other municipali­ties in SA were exempted from SRA levies but this was not the case in St Francis Bay.

“Pensioners who cannot afford to pay have to humiliate themselves and apply for an exception.

“The judgment fully vindicates the challenge by the [associatio­n].”

She said what happened next would be pivotal.

“The judgment creates the opportunit­y to reunify the community and rebuild relations with Kouga Local Municipali­ty for a better St Francis Bay and a better Kouga by starting afresh.

“Appealing [against] the judgment will deepen the split in an already divided community, worsen municipal relationsh­ips and probably lead to more litigation.”

Roy Smith, also of the Concerned Residents Associatio­n, said the SRA as it was constitute­d meant 1,600 people were paying for benefits to be enjoyed by the total of 4,500 residents in Greater St Francis Bay.

“And the people that benefit the most are the people with homes in the canals and on the beachfront.”

 ?? ?? DISAPPEARI­NG BEACH: A front loader piles rocks beneath homes and streets on the edge of St Francis Bay to provide a bulwark for when spring high tides surge across the eroding beach
DISAPPEARI­NG BEACH: A front loader piles rocks beneath homes and streets on the edge of St Francis Bay to provide a bulwark for when spring high tides surge across the eroding beach

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