An accounting firm is making more than 100 suggestions for Vernon council to consider in a major review of city spending. KPMG looked at cost savings and areas for improvement in their study of city operations that started last fall. $80,000 was budgeted for the study. Among the recommendations in the 85 page report is for the city to promote amalgamation for one municipality in Greater Vernon. The authors say that would "reduce costs and improve efficiency." Other cost saving suggestions include to increase the volunteer component of fire services, closing the Civic Arena, and reducing permissive tax exemptions. "At over 2% of tax revenue the annual value of exemptions provided by the City is larger than many other municipalities. Many cities provide 1 % or less," states the report The report also makes suggestions about the city's 320 full time staff members, but those are kept confidential. "During 2011, 59% of FTE (full time equivalents) were allocated to the provision of core municipal services in three areas (Operations, Fire and Rescue Services, and Recreation). This allocation shows that the City dedicates a majority of its resources to areas that provide front line services to citizens. The 21 % total for staff in Corporate Services seems high for overhead functions, and is influenced by the inclusion of Bylaw and Civilian Police staff (not overhead functions) in this division." The review also makes recommendations about the local water system. (The city should )"Request that Greater Vernon Water base its cost allocation between urban and rural water systems, rather than domestic and irrigation, and that rates be adjusted accordingly." The report will be presented to council on Monday.
KPMG's DRAFT Final Report
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