Citizens shell out for letters

By Jennifer Smith - Vernon Morning Star Published: September 26, 2008

Taxpayers are on the hook for the majority of $8,500 for two letters telling the district it acted within its authority in relation to sewer extension and fees. The District of Coldstream has received a chartered accountant opinion from BDO Dunwoody, billing in at $6,530, plus a legal opinion worth $2,030 from Murdy and McAllister Barristers and Solicitors. The two letters outline opinions in relation to the Kalamalka sewer extension and the Coldstream Meadows sewer extension. “As these were requested by a taxpayer, the majority of the funding came from general taxation,” said Catherine Lord, director of finance. “Because the matter pertained specifically to sewer, 25 per cent of the cost was charged to the sewer fund.” The request came from resident Gyula Kiss, who has routinely expressed concerns about how these projects were funded. It’s the taxpayers who ended up paying for these projects, said Kiss, while the sewer extensions only benefit a few.

Kiss’ complaints also centred around how the pay out of the latecomer agreement with Coldstream Meadows came into existence and how it was funded. Kiss claimed the financing decisions made weren’t legal, or at least morally right. “The point I was trying to make is the charter allows you to screw the people if you so desire,” said Kiss. Meanwhile the two outside opinions received conclude that the District of Coldstream acted within its authority. “While it may be argued by opponents of the project that there are elements of unfairness, it can not be said that the expenditures were unlawful,” states Christopher Murdy, of Murdy and McAllister, in his letter to Coldstream.

But Kiss says these opinions aren’t the ones the district should be receiving. “I didn’t ask for a lawyer’s opinion, I actually asked for a financial audit.” Lord confirms that the letter from BDO Dunwody came out of the financial audit. “I concur with both the legal and audit opinion,” said Lord. “Financial managers of municipalities advise their council if a method of financing being contemplated by council falls outside council’s area of authorization, or contravenes any section of either the Local Government Act or the Community Charter.” The legal opinion states that the Kalamalka sewer extension area was not improperly established or funded through taxation. As for the Coldstream Meadows latecomer buyout, the legal opinion also states that there was no unlawful work done.“This would be a decision within council’s jurisdiction and would not be open to challenge unless it was ‘patently unreasonable,’” said Murdy in his report.

But Kiss stands by his beliefs: that the funding formula was not fair to taxpayers and that the project appears to have benefitted the developer. Material for the audits was provided from Coldstream, which included letters from Kiss. But the fact that he was not contacted during these audits leaves Kiss to question them. “I have never talked to the lawyer,” said Kiss.“If you’re investigating something you should talk to the person making the complaint.”