Will the Multipex and Performing Arts budget be passed on March 5 ?

NORD is building up reserves in a stealth like manner . Open and transparent debate must be made by responsible councils before unauthorized reserves are built up and the taxpayers must know why they are being taxed.

Budgets are been passed without adequate scrutiny and the reserves that are in the financial plan at NORD for the Multiplex and the Performing Arts Theatre are projected to reach almost $7 million and $3.5 million respectively by 2017. (If you can't get the taxpayer to allow you to finance a capital project because you must get it by them via counter petition or referendum, then building up reserves via direct stealth taxation is the way to go.) $107,721 of this years tax increase for the Theatre and $145,574 for the Multiplex are budgeted to go into Reserves. Will NORD reopen their budget to debate this policy of Reserves by stealth or are they fully aware of it and think that it is o.k. to blindside the taxpayer?

When the taxpayers voted in a referendum the residents of Vernon, Coldstream and Areas B and Areas C agreed to a 20 year financing plan to fund the capital required to construct these buildings. We also implicitly agreed to subsidizing these buildings for the net operating costs on an ongoing basis. We hoped that this operating subsidy would decrease over time as the population increased and more usage revenue was obtained.

I don't think any one voted with the idea that the gatekeepers of the public purse (Politicians) would ever consider taxing us more on a yearly basis to built up a capital reserve that would be used to replace the building we had voted on originally. A decision to build up such reserves for a 'want' facility rather than a 'need' facility is one that should be taken and made in an open and transparent manner and communicated to the public before it is entered into. When you are building up reserves in this manner that could be construed as planning a future building fund for a facility that would normally be submitted to the taxpayer for referendum approval (or at least counter petition if that lesson is not yet learned) you better make sure that the Politicians who vote for this are aware of what they are voting for and the public is informed each year.

At the end of 2008 with this budget if passed as it is now, the Reserve for the Performing Arts will reach $316,697 which is 25.97 % of this years total taxation requisition of $1,219,500. The 2017 projection is for this reserve to reach $3,421.358.

At the end of 2008 with this budget if passed as it is now, the Reserve for the Multiplex will reach $376,461 which is 16.75 % of this years total taxation requisition of $2,246,200. The 2017 projection is for this reserve to reach $6,992,874.

Moreover the 2007 actual surplus does not yet appear to be entered into the reserve total for 2008. (probably pending audit confirmation in spring 2008). The budgeted reserve top up appears to be $20,888 for the Performing Arts function but actual unaudited surplus appears to be $46,491. The budgeted reserve top up appears to be $204,974 for the Multiplex function but actual unaudited surplus appears to be $435,840.

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