Tuesday, April 24, 2007

Transmission station could generate tax boost for city

Don Quixote Note: Below is a posting from Sept 19, 2006. Read the last paragraph of this article and you can see that a 'mere reporter' recognized the financial significance of the new Control Centre. We shall see at the special meeting to finalize the 2007 tax rates whether the Council appreciates the significance.
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By Scott Neufeld http://www.dailycourier.ca/ Tues Sept 19/06
Construction has begun on the B.C. Transmission Corporation’s new transmission centre on Kalamalka Lake Road. The new facility, which was announced last year, will be built behind the existing corporation building and will become the only transmission centre in the B.C. Interior. Community relations manager Donna McGeachie said the new centre will optimize power transmission in the Interior by upgrading the technology to benefit safety and security. “Construction is underway; we expect it to be complete by the end of 2007 or possibly early 2008,” she said. The new facility is part of a $131 million project to down shift from five provincial transmission centres to two, the other one will be located in Langley. McGeachie said the main consideration for the project was to modernize the equipment and bring in the very latest in transmission technology. “This is an upgrade to a state of the art system,” she said. “With the advances in technology over the last number of years . . . one centre in the Lower Mainland and one in the Interior appeared to be the best way to go.” The B.C. Transmission Corporation is responsible for planning and managing B.C. Hydro’s transmission lines and substations. The corporation is responsible for planning and financing improvements to the province’s electricity distribution. According to a building permit registered with the city the new building is worth $21.7 million. McGeachie said there will not be a staffing increase at the new Vernon operation but some employees from the centres in Prince George, Vancouver Island and the Lower Mainland that are being shut down may be transferred to Vernon. She said she is not sure how many employees will be working at the Vernon centre but it will be fewer than the 90 staff employed at the Langley facility. Keeping the facility in Vernon could be a major benefit to the city’s financial future. Currently, the City of Vernon collects $62,000 in property taxes from the property on 1301 Kalamalka Lake Road. With a second building going in at the site the tax revenue could rise substantially. However, Vernon could take in even more funds if the utility tax rates are adjusted. The current property tax rate for a utility is 8.1498, meaning utilities are charged roughly $8.15 for every $1,000 worth of property. The city’s finance manager Rob Maynes said he is currently comparing the city’s tax rates with other communities around the province. He said that while Vernon’s utility rates are on the low side they are comparable to many other communities in the Interior. However, Vernon’s rates are nearly five times lower than other cities with transmission centres. Prince George charges roughly $40.77 per $1,000 while Langley Township charges slightly less than $40. Maynes said he will be submitting a report to council in October to guide council on whether or not to raise tax rates for utilities, light industry and businesses. Higher tax rates for utilities could mean a lighter tax burden for residents.

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