CLUB MYKONOS LANGEBAAN HOME OWNERS ASSOCIATION

APPORTIONMENT OF THE NORMAL SERVICES LEVY

Noted
The Normal Levy Budget for 2008 / 2009 was approved at the board meeting of the CMLHOA held on 16 April 2008.

The method of apportionment of the Normal Levy remained to be determined before the new levies could be determined.

A special meeting of the CMLHOA was held on 26 May 2008 at which meeting a sub-committee was appointed to investigate and provide a proposal to the board of CMLHOA regarding the method of apportionment of the Normal Services Levy.

The board noted the proposal presented to the meeting by the CMLHOA sub-committee and, in particular, noted that the article 19 presented in the articles of association has been incorrectly transcribed from the special resolution taken by members of the CMLHOA on 24 April 2002 and was of no legal effect.

The board noted the wording of the correct article 19.

The board noted that the effect and reasons for the wording in the correct article 19 were to ensure that, in calculating the normal levies payable by the members, the expenses are assigned in accordance with the extent to which the expenses are incurred directly for the benefit of each type of development node in the resort.

Resolved
Taking cognisance of the intent and wording of article 19, the board resolved as follows:

1. In terms of article 19.2, the budgeted expense for gardens and grounds situated on erf 3750 Langebaan (i.e. Acropolis) should be assigned solely to the Acropolis Sectional title Scheme.

2. The remaining expenses in the Normal Services Budget should be assigned in terms of article 19.5.

3. In assigning the remaining expenses by membership quota, the resultant levies payable were clearly inequitable to specifically the following members in particular, namely:

      a) the owners in the Odysseus Body Corporate

      b) the owners of commercial entities in the Acropolis and Peninsula sectional title schemes

      c) the owners of erven comprising developed commercial enterprises

      d) the owners of undeveloped erven zoned for commercial usage

      e) the owners of undeveloped erven zoned for bulk residential useage

      f) the owners of undeveloped single residential erven

4. As provided for in article 19.5, the above members should be assigned a lesser share of the remaining expenses than that determined by membership quota.

5. Odysseus Body Corporate should be assigned its share by membership quota of only the following costs in the Normal Services Levy namely:

      a) Basic infrastructure - R258 000

      b) Administration - R848 804

      c) Reserve Fund Provision - R631 415

      I.e. its share of the total annual amount including VAT of R1 981 570.

      The effect of this decision determined that the normal levy attributable to the casino company, West Coast Leisure (Pty) Ltd, will be R4179 per month.

6. The commercial sections in the Acropolis and Peninsula bodies corporate should be assigned their shares by membership quota of only the basic infrastructure budget (R258 000).

The effect of the decision determined the monthly normal levy attributable to Acropolis commercial entities will be R526 and R39 for the Peninsula entity.

It was noted that these entities pay their full body corporate levy in addition to the above levy whereas there are examples elsewhere in S.A. where relief is given by corporate bodies to entities which serve as an essential amenity to the benefit of other members.

7. Erven 2784, 2785, 3753, 3754, 3755, 3756, 9673 and 9674 should be assigned their shares by membership quota, of only the following costs in the Normal Services Levy namely:

      a) Basic Infrastructure - R258 000

      b) Administration - R848 804

      c) Reserve Fund Provision - R631 415

      d) Security - R343 723

      I.e. their share of the total annual amount of R2 373 414 including VAT.

      The effect of this decision determined that the total normal levies paid by these entities will be R32 548 per month.

8. The remaining costs be assigned to all the undeveloped single residential erven and the developed residential properties by way of weighting factors determined by the relative benefit each type of property receives from the normal services provided by the CMLHOA.

The weighting factors approved were as follows: