You will hear much about Shared Service Agreements during
the election campaign so it is worth spending
time explaining some of the issues. Services
provided in Kicking Horse Country can be used by town residents, residents of
Area A, and visitors to the region. Who should pay for these shared
services?
The concept of shared service has been
applied in the valley for many years, however over the past two decades the
burden of payment for shared services has shifted onto the taxpayers of Golden
and the allocation of expenses must undergo a comprehensive review. There are a
number of funding models under the heading of shared service agreements that
need to be considered.
The arena has operated under
a Shared Service Agreement since inception. The arena is owned by the regional
district and operating expenses are shared between the town and Area A based on population, roughly 47-53 in 2014. The allocation
of expenses could be based a number of variables such as BC assessment values,
population, or facility usage.
Kicking Horse Culture, another shared service, was funded in equal parts by the taxpayers of Golden and the taxpayers of
Area A. In 2013 KHC was funded by the Economic Opportunity
Fund (EOF).
In 2014 a 3-year agreement was reached between the town and Area A
to fully fund KHC through the EOF. The EOF is just part of the payments made by
BC Hydro in lieu of property taxes for the dams and generating facilities. In
essence BC Hydro is paying for Kicking Horse Culture and, as a result, the
taxpayers of Golden and Area A will no longer be footing the bill.
A key strategy to eliminating the annual financial deficit
and building a strong financial foundation is to develop other financing models
for our shared services. A case in point would be the swimming pool. The
swimming pool is owned and operated by the town at a cost of $275,000 per year
paid solely by the taxpayers of Golden.
The director for Area A has
agreed to allocate EOF funds for this facility for 2015. If a long-term shared-funding
model can be negotiated which is fair to both parties, the annual deficit for
the town of Golden will be reduced significantly.
To support all the facilities and services that make Golden
a great place to live, we need to build a strong financial foundation. Long-term
Shared Service Agreements are critical to securing the future for our children and grandchildren.
Golden needs a decisive mayor with a strong financial
background. I have the ability and desire to bring these negotiations with Area A to a successful conclusion. I ask for your support to do so.
The opinions expressed in this blog are my personal opinions and may not be the opinions of other Councillors nor the opinion of council.
