Tuesday, September 11, 2007

Will the Finance Committee do it right on Thursday re Hospice house. ?

(Pete McIntyre) 107.5 kiss fm City To Contribute to Hospice Campaign
The 'Grow The Dream' campaign is getting a big lift from Vernon taxpayers. City council has approved a 60-thousand dollar grant to the Hospice Society's fundraiser. The society is two thirds towards its goal of raising three million dollars to double its beds to 12. Mayor Wayne Lippert is not worried about setting a precedent when it comes to giving money to non profit groups. "We have spent a lot more money on other things that probably don't have the same emotional ramifications that hospice would have in a community." Lippert says the city has money set aside to assist groups like this. "Because it goes toward part of the health benefits of the community." The 60 thousand dollars is the equivalent of what the society would have paid the city for development, building permit and other fees.
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Hospice Funding
Starlee Speers, Standard Radio News

The city of Vernon is giving the hospice house 60 thousand dollars instead of giving them a break from paying for a building permit and DCC's. Mayor Wayne Lippert says, he doesn't see this as a precedent setting city donation to a charity. Council voted to send the issue to the finance committee so they could decide which city coffers to pull the money from.
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Don Quixote Note:
The Hospice House gets a 100% permissive tax exemption for their property and deserve it and hopefully this tax exemption will be extended in this tax year. This effectively eliminates their taxes to NORD and the schoolboard etc.

The $60,000 proposed grant covers :
  • offsite work (curb gutter and sidewalk) $12,750
  • Application fee $12,744
  • Other fees , plumbing , variance etc. $1700
  • Dcc's Vernon $18,552
  • Dccs Water $5,140 (GVSC)
  • Dccs Parks $9,470. (GVSC
So basically what will happen is the City's taxpayers will pay $60,000 to the Hospice House and they in turn will use this money to pay back to the City the above fees and Dcc's. However they will actually pay GVSC a portion of the DCC's (water and Parks) in the amount of $15,610.

Now lets think outside the box and use some common sense. Lets not give the money to hospice and then have them give it back to us to put back into the DCC trust fund which will in effect lower the requirements for DCC's from developers. (Not only that but it also earns interest) Use the provisions of the LGA to waive these DCC's. (I'm sure that GVSC could also use the same section of the act to waive their DCC'S. )

As to the fees involved I am sure they could be waived down to a nominal amount without setting a precedent but if not then a grant might be the only way to go. (We see developers understate the building value all the time and we don't go back and collect a more precise fee when the $100,000 declared value becomes the $350,000 per unit sale price.)

LGA ACT DCC section:

http://www.qp.gov.bc.ca/statreg/stat/L/96323_28.htm#section932 Division 10 — Development Costs Recovery Definitions 932 In this Division: (11) As a restriction on (a) sections 176 (1) (c) [corporate powers – assistance] and 183 [assistance under partnering agreements], and (b) sections 8 (1) [natural person powers] and 21 [partnering agreements] of the Community Charter, a local government must not provide assistance by waiving or reducing a charge under this section.

(12) As an exception to subsection (11), a local government may provide assistance by waiving or reducing a charge under this section for not for profit rental housing, including supportive living housing.

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Nosy neighbours need not apply
This same kind of thinking with regards to DCC's re the 40 units for affordable housing beside the water reclamation plant and the potential $400,000+ that might be diverted from the taxpayers to the Developers DCC fund was discussed at the above link. Hopefully this will be addressed asap as well as the DCC review by an external Consultant that is long overdue.

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