Where does GVSC get INFLATION RATE ?? (First Posting feb 8)

http://www.bankofcanada.ca/en/rates/inflation_calc.html

http://www.bank-banque-canada.ca/en/cpi.html

When you go to the Bank of Canada inflation calculator the 2006 inflation rate at the end of December is 1.64%

In an article on page 2 of the Vernon Daily Courier the GVS water manager says the 5.5% water rate increase for 2007 is the rate of inflation plus three per cent. "The three per cent increase is to pay for the master water plan," said Cotsworth. (Cotsworth said the rate will increase by three per cent OVER INFLATION annually for the next four years.

Well by the Bank of Canada's calculation inflation is at 1.64% and the water rates should be increasing by 4.64%.

Doesn't sound like much difference until you do the math and find out that 5.5% is 18.55 higher than 4.64% !

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By Vernon Daily Courier staff http://www.dailycourier.ca/

Vernon and area residents will be pumping out more money for water after Greater Vernon Services approved yet another rate increase. Water rates have steadily climbed for several years and will jump by 5.5 per cent again this year. The increase will apply to metered water rates charged to domestic, industrial, commercial and institutional customers. Unmetered fees charged in those same categories will also jump 5.5 per cent.

GVS water manager Al Cotsworth said the increase is the rate of inflation plus three per cent.“The three per cent increase is to pay for the master water plan,” said Cotsworth.The Master Water Plan has been in the works for several years and the first phase is estimated at $40 million. Cotsworth said the increase will bump the water bill for an average home to $352 a year. Taxpayers should brace for more increases. Cotsworth said the rates will increase by three per cent over inflation annually for the next four years. The preliminary design for the MWP has been completed and the finer details are being ironed out.

Officials are now waiting for funding from a joint provincial-federal grant program. Cotsworth said applications have been submitted, but the amount that will be received is not known.Coldstream, Vernon and two electoral areas are working together on the project. Cotsworth said phase one is scheduled for completion by the spring of 2009. “We’ve already started some of the work,” he said, referring to some soil work and “lots” of engineering work.