JUSTIFY this policy on RESERVES to the Taxpayer.

"First the Regional District looks forward to receiving input from you in the financial planning process. With regards to any discussion of the issue of reserves in-camera, outside of specific legal, labour and/or land issues that may have an impact on the financial plan all budget discussions take place in open meetings.

As for the reserve balances for both the Multiplex and Community Theatre, the net transfers to reserves for 2008 are $78,143 and $96,101 with anticipated 2008 year end balances of $646,728 and $353, 388 respectively. The five year plan assumes a growth factor of 3.92% a year and assuming that this occurs at the end of five years the reserves will accumulate to $2,662,935 and $1,327,590 respectively. The plan however does not currently include life cycle costs for both facilities which are currently in the process of determining. Once staff has these costs we will be reviewing the reserve balances again.

Again I look forward to your input into next year’s financial plan."
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I received the above details from Mr Harris the CFO of NORD in a most timely fashion. They were given in response to my e-mail of the same day to the following questions:
1. The expected 2008 reserve balance for the Multiplex will be $ $376,461 of which $145,574 will come from this years budgeted transfer into reserves?
2. This does not include a further 2007 unaudited surplus of $435,840. (budget $204,974) which will be added to this 2008 reserve balance when confirmed?
3. The 2017 target for reserves in the Multiplex Account is $6,992,874 ?
4. The expected 2008 reserve balance for the Performing Arts will be $ $316,917 of which $107,721 will come from this years budgeted transfer into reserves?
5. This does not include a further 2007 unaudited surplus of $46,491 (budget $20,888) which will be added to this 2008 reserve balance when confirmed?
6. The 2017 target for reserves in the Performing Arts Account is $3,421,356?
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Don Quixote Note: It is too late this year for the public to have any effective input on this budget as it was passed at last Wednesday's NORD meeting.

Effectively it confirms the planned 2008 ending reserve totals of $646,728 for the Multiplex with a 5 year target of $2,662,935. (The operating costs in year 5 or 2012 is projected to be $1,525,931. The 5 year reserve will form 174% of that years operating costs.)

Similarly the Community Theatre is confirmed at the planned 2008 ending reserve totals of $353, 388 with a 5 year target of $1,327,590. (The operating costs in year 5 or 2012 is projected to be $290,028. The 5 year reserve will form 457% of that years operating costs.)
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The staff at NORD has presented a way of building up reserves in these two buildings on the current taxpayers dime and I have yet to hear from one Politician that sits at this table either what they will be used for or that they agree with this form of taxation. There is now indications of revisiting this budget for 'life cycle costs for both facilities' which may or may not be an euphemism for further upward revisions.

I expect these Politicians to stand up in their respective open Council meetings and explain why these large yearly tax burdens have been accepted and the full reasons for these reserves and their planned use.

Vernon's taxes at NORD are increasing by 6% or $513,344 in 2008. The reserve policy as voted on by your representatives at GVSV and NORD is a major part of that increase. JUSTIFY this policy on RESERVES to the Taxpayer.