Investigation examines service funding

By Richard Rolke - Vernon Morning Star - December 23, 2007

Concerns that Vernon is being short-changed for providing services are being investigated. The chief financial officers for Vernon, Coldstream and the North Okanagan Regional District will review the issue of overhead charges and present a report by Jan. 24. “I like the idea of all three CFOs trying to hammer this out and to bring some clarity,” said Gary Corner, Greater Vernon Services Committee chairman. The city provides services to GVSC under contract, primarily for the Greater Vernon water utility. It claims that it’s short $716,638 a year because GVSC is not paying enough to use city assets such as vehicles and buildings. City officials insist a full payment from GVSC would keep it from having to raise taxes five per cent in 2008.

“It could have a significant impact on all our budgets so it should be looked at now,” said Wayne Lippert, Vernon director. Discussions revolved around when the CFOs should submit a report and it was decided it should be no later than Jan. 24. “The sooner the better because we are working through budgets now,” said Lippert. Barry Beardsell, a Vernon director, says this issue arose back in the spring and it should have been addressed by now. “This is the business of the public — the taxpayer,” he said. “Why aren’t we attending to these matters? These things should not drag on and on.”

But Cliff Kanester, BX-Swan Lake director, disputes the city’s argument, saying that all GVSC jurisdictions agreed to follow the regional district’s financial policy in 2003. Jerry Oglow, NORD chairman, hopes the dispute can be resolved. “It appears that one of the stakeholders (Vernon) wants the model reviewed. It will boil down to the stakeholders deciding what is fair,” he said.