GVSC to approve new increased overhead rates to Vernon and Coldstream ??

GREATER VERNON SERVICES COMMITTEE to be held in the Board Room of the Regional District Office at 8:00 a.m., THURSDAY, FEBURARY 21, 2008

City of Vernon and District of Coldstream Overhead and Yard Costs re GVW 4.3 Report from Alan Harris, Chief Financial Officer – February 13, 2008

Recommendation:
1. That the report from the three Financial Officers dated January 29, 2008 on Overhead Analysis for Water Function – Contract with City of Vernon – Subcontract with District of
Coldstream be received.

2. That the Committee approve 2008 overhead and yard costs in the amount of $733,907 to the City of Vernon and $162,368 to the District of Coldstream and that these costs be increased yearly by the average CPI increase for British Columbia for 2009 and 2010 and that these costs be reviewed in 2010 for the years 2011 – 2013.
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Don Quixote Note: Will be interesting to see how much these are increased from 2007 levels. Vernon had originally suggested that there was a $716,638 subsidy of regional services. Latest Budget figures updated from Vernon seem to indicate that the settlement that will be approved at GVSC tomorrow will recoup $320,667 of this subsidy. (We have left $395,971 on table in 2008 and never recovered the amount lost in 2006 or 2007?)

How will my Vernon Reps debate and vote on this item? Will they actually settle for a CPI increase for the next two years rather than a more realistic move towards covering the actual service costs provided for by the City of Vernon's taxpayers?

How will the additional monies affect Coldstream's tax increase. A 9.17% increase = $266,000 according to their Dec. 11/07 budget. (1% = $29,007). I expect that Coldstream's budgeted amount for this recovery was not $162,368 as they will now recover. Each $29,000 gained tomorrow over original estimate could reduce their general taxes down by 1%.