Clarity on once-off riparian levy

23 March 2012

Clarity on once-off riparian levy

The article “Legality of once-off levy questioned” (07/03/2012) in a local newspaper has led to confusion among riparian home-owners in St Francis Bay.

Kouga Municipality would like to clarify that the once-off levy requested by the St Francis Bay Riparian Home-owners Association (SFBRHA) was supported by ward councillor Ben Rheeder and approved in principle by the Kouga Council as a whole at a Special Council Meeting on 29 February.

Clr Rheeder did, however, raise certain concerns with which Council agreed.

The first concern was whether Council could raise a levy in the middle of the financial year. Secondly, Council requested clarity about the responsibility of the municipality in respect of those who refuse to pay.

A third concern was whether Council could afford the legal battle that might arise if those home-owners who support the levy and those who oppose it could not be brought to an agreement, given that Council is an interested party in protecting the properties of this community.

Fourthly, Council also wanted to ensure that the SFBRHA, a Section 21 company, had followed the required legal processes in reaching their decision to raise a levy.

The municipality’s management has since met with representatives from both the SFBRHA and those who oppose the levy. Both parties have already obtained legal opinions supporting their respective views. The municipality is also in the process of obtaining an expert opinion which will be tabled to Council before a final decision is made regarding the way forward.