City demands cash from NORD

By Richard Rolke - Vernon Morning Star - December 16, 2007

The City of Vernon claims it could avoid a major hike in taxes if the regional district coughed up cash it owes. Council has been told it’s short $716,638 annually for services it provides to the North Okanagan Regional District, specifically for the Greater Vernon water utility. “Our calculations are different than NORD’s but even with NORD’s, it indicates there’s a shortfall,” said Mayor Wayne Lippert.The city provides water utility-related services under contract to GVSC, with most of the shortfall claims linked to using city-owned vehicles and buildings.

There is pressure on council to have the issue addressed because the city is currently looking at a 5.07 per cent residential tax increase in 2008. If the $716,638 was in place, the tax hike would only be about 0.45 per cent. “It would certainly have a dramatic affect on what we’re looking at here,” said Kevin Bertles, finance manager. It’s anticipated the city will raise the issue when the Greater Vernon Services Committee meets Thursday.

But Coun. Barry Beardsell wants assurances the city’s three GVSC representatives will lead the charge. “Are we going on a merry-go-round chasing $716,638? Are we of a united opinion?” he said. Lippert insists he is prepared to fight for the city’s interests because of the financial impact on residents. “There would be a significant decrease in the tax increase,” he said. But for Vernon to succeed in addressing the matter, it needs the support of another jurisdiction during a weighted vote (based on population). The most likely target for that support is Coldstream.“My expectation is there would be a prior meeting with the mayor of Coldstream to apprise him of the situation,” said Beardsell. But Gary Corner, Coldstream mayor and GVSC chairman, is not ready to take a stand yet.“I haven’t seen all of the figures on it so I really can’t comment,” he said.

Cliff Kanester, BX-Swan Lake director, denies NORD has been underpaying the city.“They’ve sent us a bill and I think it’s ridiculous,” he said. “It was agreed that they would use the regional district’s overhead (financial calculations).”

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Don Quixote Note: From the information above we can conclude that a 1% tax break for Vernon is equal to $155,116.

Background:

The actual amount requested of $716,638 is the difference between the actual recalculated amount of $1,627,706 and the Overhead recoveries from NORD of $911,068. This is based on 2006 figures. These results were given to NORD on Friday June 8, 2007 after discussions with senior bureaucrabs from both the City of Vernon and NORD. These discussions and examination of the yards overhead were part of the service review requested by GVS of these overhead charges that had not been reviewed since 2004.

The interesting part is that the City seems to be asking for the recalculated amount of Vernon's subsidizing of a regional service only for this year. I trust that this is an ongoing charge that will reduce my charges for the 2008 tax year and that this one time claimed charge for 2006 and the 2007 back charge when calculated will form part of an operating surplus for 2007 that will be available to further reduce 2008 taxes when collected?

The effect on the residential taxpayer of Vernon would be lower City taxes but that would be offset by increases primarily in the water rates that would be borne by that same taxpayer based on water usage. Personally, because of the method and distribution of the recalculation it would take less money out of my pockets.

Thank you Vernon bureacrabs for this important bonanza. Thank you GVSC for initiating the service review request to look at the overhead calculation.

What team of Vernon Representatives will be filling the GVSC seats at Thursday's GVSC meeting? Will it be the 2007 team of Lippert, Beardsell and Baumbrough or the 2008 appointed team of Lippert, Baumbrough and Cochrane. Once again I may have a majority of non residential taxpayers negotiating my interests at a regional pow-wow. Hopefully this item will get on the GVSC agenda as it isn't on there on the website copy.