The city of Vernon wants to ensure surplus funds from Wesbild Centre and the Performing Arts Centre, are used for the right purposes. Councillor Bob Spiers says council is requesting GVAC and NORD to only use the funds for operating and equipment expenses. "But in no case should they ever be.....We shouldn't be putting money away for the replacement of that building. That's a decision that should be made 20 years from now when the building is paid off." Spiers says the current surplus for the Multiplex is $1.3 million, with another $400,000 to be added this year. He feels that doesn't need to be so high, and the money could be used for better purposes. "$400,000, if we took that out, Vernon's share of that is about $267,000, so that's a one percent tax increase we could drop down at the regional district level."
In a five part motion, council has instructed its GVAC and NORD reps that in the 2010 budget relating to Wesbild Centre and the Performing Arts Centre that the reserve for operating reserves be set at 20 % of 2010 operating expenses ($282, 521 for Wesbild) ($67,321).
The city says the balance at the end of 2009 should be set aside in an equipment and life cycles reserve, and the 2010 transfers of $408,867 (WC) and $60,014 (theatre) be deferred this year unless shown to be part of an equipment reserve 5 year total reasonably expected to be used and necessary.
The city also wants the policy to state the reserves for this function shall never be built up or used for a major expansion or replacement, as that debate can take place when the debt is paid off.
No comments:
Post a Comment