BX land bought 4122 EAST VERNON RD VERNON V1B 3H7

by Richard Rolke - Vernon Morning Star posted Apr 8, 2016 at 1:00 AM— updated Apr 8, 2016 at 5:53 AM
Greater Vernon now owns a new chunk of parkland as well as future residential lots. The Regional District of North Okanagan board finalized the purchase of the BX ranchlands property Wednesday. “It’s a part of the history of our area,” said Mike Macnabb, director. “It provides a connection between our parks.” Specifically, there will be a trail link between BX Ranch Park on BX Road and the Mutrie Road dog park, as well as Black Road Park. The 166 acres were acquired for $2.3 million and 40 acres will be kept for public use, while the remainder will be sold for residential lots as a way of recouping some of the purchase price. Macnabb says the decision to sell most of the site was made by other GVAC partners and he ultimately hopes the entire property can be retained. “We have to convince the partners,” he said. “We have support for that from the naturalists club and the BX-Swan Lake Community Association. It would be a huge asset.”
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Original Listing Info:
http://www.bennetto.ca/images/uploads/listings/BX_Ranch.pdf

4122 EAST VERNON RD VERNON V1B 3H7   BC Assessment 2015

http://www.alc.gov.bc.ca/assets/alc/assets/applications-and-decisions/search-for-applications-and-decisions/2016-decision-minutes/54250d1.pdf

2016 Financial Plan RDNO online.

REGIONAL DISTRICT OF NORTH OKANAGAN
COMMITTEE OF THE WHOLE MEETING
Wednesday, March 2, 2016
1:00 p.m.
REGULAR AGENDA (70 Pages)
1. 2016 Financial Plan
– Consolidated Budget
Presentation to be provided by Stephen Banmen, General Manager, Finance

P.70 Operating Reserve Balances at RDNO

Church sells waterfront land to region

by Jennifer Smith - Vernon Morning Star posted Oct 14, 2015 at 1:00 AM
A piece of waterfront paradise, which has spread smiles for youth and families for more than 80 years, is in the public hands. The Regional District of North Okanagan has purchased the Camp Hurlburt property on Okanagan Lake for public parkland. The approximately 2.5 acre property was purchased for $2.3 million from Trinity United Church. The church ran the camp for more than 80 years but announced last year that it was selling the property. The purchase will give the public access to more than 1,000 feet of waterfront recreation area. With lakefront property in limited and high demand, the price was right said Juliette Cunningham, Greater Vernon Advisory Committee chairperson. “It (appraisal) was considerably higher so I think we negotiated a good price for the public.” She is hopeful the property will be open to the public next year, following a park planning process. “I would like to see some public consultation,” said Cunningham, who is expected to bring the subject up at the November GVAC meeting. Meanwhile, the church is pleased to see that the property will continue to spread smiles in the community. “Since 1931, thousands of young people and families have been blessed by the opportunities available at this beautiful place,” said Trinity Rev. Jeff Seaton. “The sale of this property to the regional district allows Trinity to maintain that legacy through community-based programs for children, youth and families, while ensuring the entire community can benefit from direct access to this special location.” The money to purchase the property comes from a reserve fund which was set up several years ago specifically for land purchases such as this. “It’s always prudent to acquire the land,” said Cunningham. “They’re not making anymore lakeshore.”

Regional district financial plan shrinks

by Richard Rolke - Vernon Morning Star posted Mar 13, 2015 at 1:00 AM— updated Mar 13, 2015 at 6:03 AM
Fewer tax dollars are being pumped into Regional District of North Okanagan coffers. Directors met Wednesday to review the proposed 2015 budget, which sits at $62.3 million compared to $75.1 million last year. “The total tax requisition for 2015 is $15.6 million, down from $17.6 million in 2014,” said Stephen Banmen, chief financial officer. The proposed operating budget is $40.8 million, down from $41.6 million, while the capital budget has gone from $33.5 to $21.4 million. Much of the decrease is a result of restructuring Greater Vernon’s parks and recreation function but a number of other services will either see a decrease or no increase in their tax requisition. A change in the 911 provider also reduced overall expenses. “It’s a responsible budget,” said Rick Fairbairn, chairperson, adding that the board’s goal has been to control spending. “We didn’t replace a lot of people who retired.” Each community is requisitioned taxes based on services it receives from RDNO, and that varies. Among the functions that will cost more are the BX-Swan Lake, Lumby and Silver Star fire departments. Taxes for each will climb 2.5 per cent. “Training is driving the cost increases,” said Banmen. The Lumby community services function, which is supported by Lumby, rural Lumby and Cherryville residents, will see the requisition jump 260 per cent or $11,484. That is a result of the service mandate expanding to include the local health care society. Coldstream, Vernon and Armstrong’s grant to the Okanagan Film Commission will climb from $24,766 to $33,781, or 36.4 per cent. It’s anticipated RDNO’s 2015 budget will be adopted March 18.
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EDITORIAL: RDNO budget a positive sign
by Editorial - Vernon Morning Star posted Mar 13, 2015 at 1:00 AM
The Regional District of North Okanagan appears to be taking a distinct financial approach. Unlike local municipalities, the regional district is moving ahead with a 2015 budget worth $62.3 million, down from $75.1 million last year. The total tax bill is dropping from $17.6 to $15.6 million. In most cases, budgets for individual functions aren’t rising much more than the cost of living. “It’s a responsible budget,” said chairperson Rick Fairbairn, adding that the goal has been to control spending. “We didn’t replace a lot of people (staff) who retired.” And for those functions that will experience higher spending, the situation is largely out of the hands of RDNO. Provincial rules have mandated expanded training for firefighters and B.C. Hydro fees mean it costs more to operate street lights. But it should be pointed out that while RDNO’s tax burden has eased, those taxes haven’t disappeared. Part of the reason the district’s budget is reduced from previous years is because of restructuring Greater Vernon’s parks and recreation service. Many of those activities are now directly provided by Coldstream and Vernon, which means those jurisdictions are now taxing their constituents for the service, not RDNO. And for what’s left of Greater Vernon’s recreation function, there is a $790,000 overrun for the sports track under construction. That money is coming from a mix of reserves and taxation, as well as, hopefully, grants and sponsors. While some of the budget’s fine details may still raise questions, it is certainly worth acknowledging the reduced spending and taxation. Hopefully, that is a trend regional district politicians and administrators can continue in the years to come.
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2015 RDNO Budget Workshop  See the Individual Function Requisitions here.

NORD Tax Requistions 2010 (Proposed)

Don Quixote Note:
The first two charts are the proposed Nord Tax Requisitions for 2010 for Vernon and Coldstream. The net result is a 1% tax increase for Vernon taxpayers and a 2% Tax decrease for Coldstream.taxpayers.

(Because some of the major services such as the multi-plex , community theatre and parks and rec. are assessed on improvements only and NOT on land the individual taxbill may vary considerably depending on your properties mix of land and improvements.) Last year 87% on Improvements only, 11% on BOTH land & Improvements and the remaining 2% on Land Only. (mostly SIR program)

The major change for the Multi-Use Facility (shown in 3rd image) from initial presentation was that the GVSC directors unanimously agreed to reduce the amount been set aside for future reserves from $408,967 to $200,000. This effectively helped the taxes to be decreased in Vernon from 2.5% to 1.0% and Coldstream from a small .006% tax decrease to its final projected tax decrease of 2%

This seems to be in response to the posting at Reserve Policy to be Addressed at NORD & GVSC by Politicians. Nov 15,2009. This will bring the Reserves in the Multi-use Facility to $1,561,079 and the curtailment of the transfer to reserve this year is a start to developing a valid reserve amount for operating, & equipment reserves in the future.

Also when the Vernon Requisition is examined closely there is a return of $101,243 for Ec. development and the winding up costs for GVS of $55,060 that total $156,303 tax reduction that even when offset by the $70,759 increase in General Governance results in a net $85,444 tax decease. Almost 1% (.9%). This is a 1 time return that benefits this years taxpayer.

Reserve Policy to be Addressed at NORD & GVSC by Politicians.

This came from a posting on Saturday, March 08, 2008 called: JUSTIFY this policy on RESERVES to the Taxpayer.------------------------

• At this point Reserves as a %age of operating expenses were $353,388 or 132.75% for the Community Theater.
• At this point Reserves as a %age of operating expenses were $646,728 or 46.52% for the Multi-Plex.

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At a Nov 4, 2009 COW Meeting the CFO David Sewell made a presentation of all the reserves of all of NORD's functions and presented the "operating reserves" as a % of operating expenses for 2009. This was the first open and transparent presentation of reserves that I have ever seen at NORD.

• At Close of 2009 Reserves as a %age of operating expenses were $463,656 or 168.3% for the Community Theater. (an increase of over $90,000)
• At Close of 2009 Reserves as a %age of operating expenses were $1,341,531 or 93.5% for the Multi-Plex. (an increase of just less than $700,000)

Our Politicians at the NORD and GVSC tables will be addressing all reserve balances and the philosophy of Operating Reserves (that should be at no more than 20% except in special circumstances as suggested by Mr. Sewell CFO-NORD), Capital Equipment Reserves, and Capital Facility or Future Building Replacement Reserves. The Capping of these reserves and indeed the necessity of the reserves especially for Future Replacement will be formalized hopefully through the upcoming budget cycle.

As Vernon taxpayers pay 66.42% of both the Multiplex and Community Theatre Functions in 2009 the concern about excessive stockpiling of reserves is of paramount interest. (Coldstream pays about 17.06%, Area B pays 8.24% and Area C pays 8.28%).
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Don Quixote Note:
The outstanding debt issues on these two buildings and a breakdown of operating expenses versus debt and interest expenses can be found in a July 2009 Posting: Multiplex and Performing Arts Theatre - Where we stand !

As both of these buildings Debt issues have a 20 year amortization schedule that will be paid off mostly by 2020 it is apparent that the taxpayer of this period (2000-2020) will be paying off a building that hopefully will last at least 35- 40 years before any replacement building will even be contemplated or needed.

Setting aside the argument of whether the Politicians of today should build up Capital Building Replacement reserves by taxing the 2000-2020 taxpayer who is already paying at almost 2 times the lifetime of the building rate, it is easy to see that any such reserves should only start in 2021 when the Debt is fully paid and probably only after Citizen and Taxpayer input at that time. (Referendum?).

A sound Operating reserve capped at a % age of operating expenses (to provide for emergencies and overlooked expenses) and a capped Capital Equipment reserve to pay for major replacements needed are worthy of consideration. Capital Building Replacement reserves at this time and at least until 2021 are NOT needed. The taxpayer who benefits in the future will be the taxpayer who decides if this is what he wants and agrees to be taxed for.

The Financial Staff at NORD has given an honest exposure and explanation of our reserves. It will be up to the Politicians at these tables to represent the taxpayer and formulate a fair ongoing Reserve Policy.

JUSTIFY this policy on RESERVES to the Taxpayer.

"First the Regional District looks forward to receiving input from you in the financial planning process. With regards to any discussion of the issue of reserves in-camera, outside of specific legal, labour and/or land issues that may have an impact on the financial plan all budget discussions take place in open meetings.

As for the reserve balances for both the Multiplex and Community Theatre, the net transfers to reserves for 2008 are $78,143 and $96,101 with anticipated 2008 year end balances of $646,728 and $353, 388 respectively. The five year plan assumes a growth factor of 3.92% a year and assuming that this occurs at the end of five years the reserves will accumulate to $2,662,935 and $1,327,590 respectively. The plan however does not currently include life cycle costs for both facilities which are currently in the process of determining. Once staff has these costs we will be reviewing the reserve balances again.

Again I look forward to your input into next year’s financial plan."
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I received the above details from Mr Harris the CFO of NORD in a most timely fashion. They were given in response to my e-mail of the same day to the following questions:
1. The expected 2008 reserve balance for the Multiplex will be $ $376,461 of which $145,574 will come from this years budgeted transfer into reserves?
2. This does not include a further 2007 unaudited surplus of $435,840. (budget $204,974) which will be added to this 2008 reserve balance when confirmed?
3. The 2017 target for reserves in the Multiplex Account is $6,992,874 ?
4. The expected 2008 reserve balance for the Performing Arts will be $ $316,917 of which $107,721 will come from this years budgeted transfer into reserves?
5. This does not include a further 2007 unaudited surplus of $46,491 (budget $20,888) which will be added to this 2008 reserve balance when confirmed?
6. The 2017 target for reserves in the Performing Arts Account is $3,421,356?
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Don Quixote Note: It is too late this year for the public to have any effective input on this budget as it was passed at last Wednesday's NORD meeting.

Effectively it confirms the planned 2008 ending reserve totals of $646,728 for the Multiplex with a 5 year target of $2,662,935. (The operating costs in year 5 or 2012 is projected to be $1,525,931. The 5 year reserve will form 174% of that years operating costs.)

Similarly the Community Theatre is confirmed at the planned 2008 ending reserve totals of $353, 388 with a 5 year target of $1,327,590. (The operating costs in year 5 or 2012 is projected to be $290,028. The 5 year reserve will form 457% of that years operating costs.)
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The staff at NORD has presented a way of building up reserves in these two buildings on the current taxpayers dime and I have yet to hear from one Politician that sits at this table either what they will be used for or that they agree with this form of taxation. There is now indications of revisiting this budget for 'life cycle costs for both facilities' which may or may not be an euphemism for further upward revisions.

I expect these Politicians to stand up in their respective open Council meetings and explain why these large yearly tax burdens have been accepted and the full reasons for these reserves and their planned use.

Vernon's taxes at NORD are increasing by 6% or $513,344 in 2008. The reserve policy as voted on by your representatives at GVSV and NORD is a major part of that increase. JUSTIFY this policy on RESERVES to the Taxpayer.

Multiplex and Performing Arts Theatre - Where we stand !

CLICK ON IMAGE TO ENLARGE
The taxes paid in each applicable area are based on improvements only. (Land doesn't count) for these two buildings that were passed by a referendum of the GVSC partners.

Average house in Vernon $289,509. (Land $138,937, Improvements $150,572) would have paid $62.72 towards the $14,750,000 multiplex and $34.06 towards the $9,020,000 Theatre in 2007. This would make the Debt costs for the Multipex $42.21 and the Theatre would be $25.72. Operating subsidy would be $20.51 for Multiplex and $8.34 for Theatre.)