Captain Bailey Way Pro- Forma Income Statements and Honorariums !

The chart shows a comparison between the Income Statement of Feb 25/08 and the Income statement presented at Council Sept 22/08 by the President of the Captain Bailey Way (CBW) Development Corporation. There were many changes from the original presentation including a $3.7 million dollar increase in the selling price of the hangers and residences and an increase of the forecasted profit of $872,830 to $1,981,980

The loan interest appears to be underestimated by about $29,500 and the DCC's appear to be only for the City DCC's and do not take into account the Park DCC's and Water DCC's payable to GVSC. The Geo Thermal disappearance of $500,000 from the final presentation is explained away as it is put into the costs of the Hanger and Residences and this helps explain the per Sq. Ft cost escalation.

As to the Honorariums of $64,800 the breakdown is as follows:
President John Tigchelaar $1000/month for 3 years. Total $36,000
Directors Barry Jackson, John Blunt, Steve Bertram $200/month for 3 years $7200 per director. (Total $21,600)
City Council Director (Presently Pat Cochrane) $200/month for 3 years $7200 Total.
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In response to Coun. Beardsell's question it was stated by the President of CBW that the Honorariums were to compensate the Directors and President for out of pocket expenses.

As Honorariums are taxable in the hands of the recipient while reimbursed receipted expenses would not be taxable it might be best if this $64,800 became the budget for Directors expenses for valid expenses rather than paid as a Honorarium. Whether a Council Director should be paid an Honorarium is debatable.

The same argument might be made against the directors fees for the Directors of the Hesperia Corporation and especially the Council Director. These budgeted fees of $11,000 in 2007 and a further $25,000 in each year from 2008 to 2015 for Directors Fees are in the same category and must be scrutinized. The financial statements of Nov. 2007 indicated that these fees were not paid out in 2007 and it will be interesting to see if t-4's for the 2008 payments will be issued by the City of Vernon?