Detailed Information
Proposal to increase the scope of Southbroom’s urban improvement precinct (UIP) managed by the Southbroom Property Owners Association.
Introduction
Southbroom is regarded as a progressive and effective community maintaining universal standards on the KZN south coast. Southbroom property owners believe it is time to expand the role of the SPOA to significantly enhance municipal services, infrastructure and investment in Southbroom including, but not limited to, roads, pavements, recreation and other areas.
The objective is to improve quality of life for all property owners, enhance the beauty of Southbroom and increase property values.
Southbroom has a legal, functioning and accepted UIP managed by the SPOA with a fully operational board of directors which is currently used solely for the enhancement of crime prevention and policing services via the CPF. It is highly successful with zero serious crime being reported for a long time.
The SPOA is currently funded via a UIP levy of R164.64 per month (for 10 months) that all ratepayers pay via their municipal rates.
It is proposed that the UIP levy currently included in the rates collected by RNM be increased to R387.39 for 10 months. This will result in a projected collection of R4,000,000 per annum.
The current funding of the SRA and the SC (and all their sub-committees) will be brought together under the SPOA.
This proposal requires approval from 50%+1 of all property owners in Southbroom, totaling 567 property owners. It also requires approval by RNM.
ACTION REQUIRED
If you are a property owner in Southbroom, you are invited to vote on this proposal via the Google Form accessed via the link https://forms.gle/P7WmKKvkSmGRdXZn9
or to submit your vote in the box located at the SPAR or to attend one or both public meetings.
These will be held on Wednesday 3 January 10h00 and a SGM on Friday 19 January 2024 at 10h00 (both at the Southbroom Golf Club).
You have a vote for each property you own. You have a vote if you own a unit in a complex.
Voting closes 26 January 2024.
The Southbroom Property Owners Association
The SPOA is a non-profit company (Section 10 - Schedule 1) that was incorporated in 2005 as a legal requirement of the UIP formation procedure. At the time its primary purpose was to augment security and policing services security in Southbroom. This was achieved by creating a Special Rating Area (more commonly referred to as an Urban Improvement Precinct or UIP) for which more than 75% of property owners voted in favour. This is funded by way of a fixed levy added to the rates bill of each property and collected by RNM.
The SPOA is responsible for all its financial affairs including managing the receipts from RNM, disbursements, staff, management and financial records, fixed asset register, budgets, audits, annual financial statements, BoD meetings and AGMs.
The day-to-day management of security and policing services is done through the CPF.
The reduction in crime and sustained improvement of security in the village is testimony to how well the system works. At inception house breakings averaged approx. 20 per month. For several months in 2023 there have been zero housebreakings and zero serious crime.
However, the SPOA’s functions are not limited to security issues. The MOI of the SPOA states:
2.1 … the board shall attend to the necessary enhancement of Southbroom as contemplated by the objects of this Company and the relevant Board resolutions.
The VISION:
A better living for the Southbroom community, which will:-
4.1 enhance and supplement the municipal services, infrastructure and protection to the community provided by a local Municipality;
4.2. facilitate investment in the special rating area;
4.3 facilitate a cooperative approach between the Municipality and the private sector in the provision of municipal services.
The SPOA is the ideal vehicle to be used to combine all the current efforts of community activity within Southbroom. The SPOA will bring all administrative expenses (audit, banking, insurance, etc.) under one entity to reduce costs and avoid duplication.
Apart from a village manager, an accountant and cleaners and maintenance staff, there will be no salaries, rewards or any other remuneration for the BoD, volunteers or management of the SPOA or any of the subsidiary entities.
The collection system has been tried and tested over many years and will make the funding of the improvement projects inclusive of all ratepayers rather than on a voluntary basis. Currently only 40% of property owners are members of the SRA and less than 20% of the SC, yet everyone benefits from the work done by these organizations.
OPEX and CAPEX
With the increased UIP there will be sufficient funds available to significantly enhance municipal services including but not limited to:
Operating expenditure (OPEX)
SPOA admin: incl. insurance, bookkeeping, RNM fees
CPF
SC
SRA:
Cleaning staff x 3 - village needs daily care, public ablutions
Pothole repairs
Maintenance staff x 2
Additional lifeguards
Materials - compost, hardware, cleaning, paint, etc. etc.
Public gardens and trails - beautification and planting
Protection of natural areas
Public open spaces and playgrounds
Drain clearing - regular clearing
Geriatric care training
UIF administration and assistance with employment contracts
Tennis, golf and bowls training for kids
Nursing assistance for the elderly
Potholes
Additional lifeguards when required
Capital Expenditure (CAPEX)
Water system enhancements
Equipment, tools, generator, storm assistance equipment
Fire equipment – mobile tender
Street signs - faded, old and dangerous
Road marking - faded, old and dangerous
Bus shelters - need more especially at entrance to Southbroom
Storm water drains - all covers are broken, derelict and dangerous
Kerbs and kerbs stones - most broken and dangerous, throughout SB
Beach access and ramps - broken and dangerous and not friendly for elderly or infirm
Library upgrade - hugely popular. Revamp RNM building
Pedestrian access to village for workers. Currently dangerous
Disability assistance and facilities
Planning and design for reticulation and reservoir upgrade - water
Prioritization of OPEX and CAPEX will be the function of the SPOA BoD.
Detailed budgets will be researched and investigated.
The Board of Directors
The SPOA directors are:
Jurie Snyman is seconded as the accountant.
The auditors are Chantel Elliott & Company.
Proposed change to the Board of Directors
Southbroom and the SPOA will be better served, considering the greater role to be played by the SPOA, by an enhanced board. It is proposed to increase the board by an additional two directors elected at the SGM.
This will require an amendment to the MOI which requires 75% approval of a quorate meeting and will be voted on at the SGM in January.
Total Budget
The total proposed budget for the SPOA can be summarized as follows:
Operating Expenditure (OPEX)
| SPOA | 444,000 |
| CPF | 1,600,000 |
| SRA | 1,331,600 |
| SC | 228,000 |
| Total OPEX | R 3,603,660 |
| Annual CAPEX | 387,791 |
| Annual Budget | R3,991,391 |
