SFBRA: PROPOSAL TO RESIDENTS
AGENDA
1.
2.
3.
4.
5.
Our Infrastructure is at breaking point.
Consequences of broken Infrastructure.
Costs of repairing and maintaining Infrastructure.
Proposed Actions.
Conclusion.
1. Infrastructure at Breaking Point:
• Road surfaces badly worn.
• Stormwater drains are overgrown and blocked.
• Sewerage service vehicles unreliable.
• River is silting up.
• Beach is eroding away.
• Spit will be breached in near future with disastrous consequences for the canals.
2. Consequences of Broken Infrastructure:
• Reduction in property values.
• Decline in demand for existing properties.
• Decline in investment in new properties.
• Loss of SFB’s tourism appeal.
• Decline in business revenue, and consequential closure of businesses.
• Loss of jobs, leading to increase in crime (as occurred with the Chokka industry labour
disputes), resulting in further declines in property values.
3. Cost of Infrastructure Repair & Maintenance
• Roads (30kms)
= R19.2m
• Stormwater drains repairs (existing) = R400k
• Stormwater drains new (budget)
= R1.5m
• Sewerage vehicles (tbc)
= R1m
• Sewerage line extensions
=?
Total (5 years)
= R22.1m
3. Cost of Infrastructure Repair & Maintenance
• Emergency Repairs to Spit & Beach – Phase 1
- BAR cost
= R400k
- Repair cost
= R34m-41m
•
Restoration of River, Spit & Beach – Phase 2
- EIA cost
= R1m
- Restoration cost
= R160m-200m (Worley Parson)
- Maintenance cost
= tbd
Total River, Spit & Beach costs = R195m-241m
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4. PROPOSED ACTIONS
Roads, Stormwater Drains & Sewerage:
• Take over the maintenance of SFB’s Infrastructure: Roads, Stormwater drains, Sewerage
service, River, Spit and Beach.
• Create a Maintenance team to maintain the Roads, Stormwater drains and Sewerage
service.
River, Spit & Beach:
• Work directly with DEDEAT and Oceans to Coast to address the River, Spit and Beach
problems.
• Establish the SFBRA as the single point of responsibility for the maintenance of SFB’s
Infrastructure, as per DEDEAT’s recommendations.
• Register SFB as a SID (Self Improvement District) with the Municipality, which allows it to
collect a levy to fund the Infrastructure maintenance.
• Until the SID is established, raise funds directly from Property Owners, through a
voluntary payment (equivalent to the existing rates on the property) to the SFBRA
Infrastructure Fund.
Managing the Funds Raised:
• Establish a Fund to finance SFB Infrastructure maintenance.
• Register a Schedule 1 company (not for Profit).
• Register the Company as a PBO with SARS.
• Appoint a Board of Directors with a blend of competence and objectivity.
• Raise money from Property Owners, Business Owners, Government and other
Stakeholders.
Raising Funds:
• Property Owners: pay an additional levy equivalent to their current rates to SFBRA
Infrastructure Fund e.g. a property valued at R4m pays rates of R2,000 per month (R24k
pa).
• Business Owners – donations.
• Government : National, Provincial and Local Govt. contributions to River, Spit and Beach
restoration.
• Other Stakeholders : PBO contributions.
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QUESTION :
“Why should I contribute to this Fund? It is the Municipality’s responsibility and I already
pay for these services!!”
ANSWER :
• The Municipality simply does not have the money, and SFB is not its priority.
• All Private Estates (The Links, Rivertide,….) pay rates to the Municipality, and also pay a
levy (often equivalent to the rates) to the Estate’s governing body to maintain all services.
•
We should regard SFB as a Private Estate if we want to preserve its Infrastructure.
“WHY?”
• If your property is worth R2m, you will pay rates of R1,000 per month (R12k pa).
• If our Infrastructure collapses, and property prices decline by 25% to 50% you will
likely lose between R500k and R1m of the property value, if you can sell it.
• Would you rather lose R500k or pay an additional R12k each year to
preserve/enhance the value of your property?
5. CONCLUSION :
• SFB has 1,550 properties (with dwellings) and 600 vacant plots (excl. private estates)
•
SFBRA Property Owners pay R37m in rates pa to Kouga.
•
Property Owners pay the equivalent of what they pay in rates to the SFB Infrastructure
Fund.
•
SFB can raise R37m each year (excl. private estates), and raise R185m over 5 years.
•
Once the infrastructure has been fixed, then one can expect to pay a lower amount,
perhaps 25% of the annual rates amount.
•
Examples : Sea Point, Cape Town CBD, Richmond Hill (PE).
•
We need UNITY among all residents to be successful.
We Welcome Your Feedback
(contact@sfbresidents.org)
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SUMMARY OF ROAD REPAIRS
Area
Length
Area
60mm paving
25mm Premix 13mm stone chip
Slurry
Canals
8800
44900
R 9 429 000
R 8 082 000
R 4 265 500
R 2 065 400
Village
15000
89800
R 18 858 000
R 16 164 000
R 8 531 000
R 4 130 800
Samtareme
4100
20500
R 4 305 000
R 3 690 000
R 1 947 500
R 943 000
St Francis on Sea
3340
16510
R 3 467 100
R 2 971 800
R 1 568 450
R 759 460
Port St Francis / Otters Landing
2810
15880
R 3 334 800
R 2 858 400
R 1 508 600
R 730 480
Industrial
1350
6750
R 1 417 500
R 1 215 000
R 641 250
R 310 500
35400
194340
R 40 811 400
R 34 981 200
R 18 462 300
R 8 939 640
Total
BUDGET ESTIMATE
Condition
% of road network
Poor
80%
Average
20%
Total cost
R 14 769 840
R 1 787 928
16 557 768
Contingency 10%
1 655 777
Sub Total
18 213 545
Proffessional fees 5%
910 677
TOTAL 19 124 222
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