Why I voted against utility rate hikes.

At the Standing Committee on Finance meeting on Tuesday September 16^th, it was resolved, with Councillors Hern and Moss opposed, to recommend to council that water rates be hiked 2.5% per year and sewer rates be hiked 5% per year for the next 3 years.

For the 3 years 2012-14, the town of Golden council increased both water and sewer rates by 5% per year based on an intuitive belief that rates were too low. On Tuesday the committee was presented with a staff report supporting rate increases based on Asset Management principles; so why did I vote against the rate increases?

Both water and sewer rates provide sufficient revenue to cover annual operating expenses with an amount left over to fund future capital projects. The debate revolves around what is an adequate allowance for future capital projects.

Accountants calculate an amount of amortization based on the historical capital cost of the asset divided by the life expectancy of the asset. Due to inflation this amount may be inadequate and should be considered the minimum. Based on accounting principles, water and sewer rates are adequately funded.

Recognising that the amortization calculated by our accountants may be understating the future capital requirement, Asset Management tries to calculate the future replacement costs of the asset by estimating future capital replacement costs based on an assumed inflation rate. In periods of low inflation, this guesstimate may overstate the future capital requirements. Based on asset management principles, water and sewer future capital requirements are grossly under-funded.

The staff report did not take into account the New Building Canada Fund. Announced in 2014 by the federal government, the NBCF will provide grants of up to 2/3 of the capital cost for water and sewer projects. On the assumption that the town is successful in obtaining grants under the NCBF, the town will only be responsible for a third of the cost of major water and sewer infrastructure projects. On this basis, the town has more than enough funding for future asset replacement even under asset management principles.

The New Building Canada Fund will provide grants for water and sewer infrastructure but NOT road. Unfortunately most water and sewer infrastructure are located below roads which must be excavated in the process. Ironically the town has healthy reserve funds for water and sewer estimated to be $1.4 million by the end of 2014. 

The road reserve fund is empty! Nil! Zero! We need to focus on building the road reserve funds or we will not be in a position to take advantage of the New Building Canada Fund. 

I voted against the rates hikes as I believe the water and sewer are adequately funded with existing rates and that council needs to focus on building a reserve fund for roads.

The opinions expressed in this blog are my personal  opinions and may not represent the opinions of other councillors nor the opinions of council.

Keith Hern for Mayor

After much consideration and encouragement, today I filed nomination papers for the office of Mayor in the upcoming municipal elections. I was nominated by Miriam Elkington and Roy Nixon, both of whom are ex-councillors and stalwarts in our community.

In the weeks leading up to the election I shall be releasing discussion papers on topics of great importance for the town. If you have any question please email or phone(250-344-6090) and I will try to answer them as best as I can.

Flec Demmon (250-344-8451) and Bob Tegart (250-272-4321) have volunteered to locate my lawn signs. If you would like to display a sign please give either one a call.

Raymond Johnson has offered to be my financial agent (250-344-5566). Should you feel the urge to support my campaign with contributions, you can send cash or cheques to Ray.

Election Day is November 15^th with an early voting day on November 5^th 2014.

The opinions expressed in this blog are my personal opinions and may not represent the opinions of other Councillors nor the opinion of Council.

Economic Opportunity Fund allocations

As mentioned in an early blog, Kicking Horse Culture has secured funding of $120,000 per annum for the next three years (2015-2017) from the Economic Opportunity Fund. 

In addition, at the Town of Golden Special Open Council meeting on June 17^th 2014, council confirmed its support with the Area ‘A’ director in requesting the board of the CSRD allocate from the Golden and Area ‘A’ Impact Area EOF;

1.       $80,000 in the fiscal year 2014 to the early Learning and Care Stakeholder Action Group to leverage other funding toward the construction of an early learning and care centre in Golden and;

2.       $45,000 in fiscal 2014 and another $45,000 in fiscal year 2015 to the Golden Nordic Club Society toward its continuing infrastructure development.

The Economic Opportunity Fund (EOF) is derived from the Impact Area component of the BC Hydro payments in lieu of taxes (PILT) for the power generating facilities including dams, reservoirs and powerhouses and is available to the CSRD each and every year. In 2014, $273,000 was allocated to Golden and Area ‘A’ Impact Area EOF. This amount of EOF is expected to increase as more power generating facilities are developed by BC Hydro.

All monies extracted from the EOF must be approved by both the Golden Town Council and the Area ‘A’ regional director and ratified by the CSRD board.

Kicking Horse Culture secures funding

Kicking Horse Culture has secured funding of $120,000 per annum for the next three years (2015-2017) from the Economic Opportunity Fund. This means that the Economic Opportunity Fund will provide Kicking Horse Culture with the full level of funding under the Cultural Services Contract without having to increase municipal property taxes. 

The Economic Opportunity Fund (EOF) is derived from the Impact Area component of the BC Hydro payments in lieu of taxes (PILT) for the power generating facilities including dams, reservoirs and powerhouses and is available to the CSRD each and every year. In 2014, $273,000 was allocated to Golden and Area ‘A’ Impact Area EOF. This amount of EOF is expected to increase as more power generating facilities are developed by BC Hydro.

All monies extracted from the EOF must be approved by both the Golden Town Council and the Area ‘A’ regional director and ratified by the CSRD board.

The opinions expressed in this blog are my personal opinions and may not represent the opinions of other Councillors nor the opinion of council.

Golden Farmers' Market

There has been much discussion in the community resulting in a number of emails to various councillors. In response to some of the questions posed to me I want to offer the following answers.

What has council done that affects the Golden Farmers’ Market (GFM)?

At the present time council has made no changes to the fee for the Temporary License of Occupation required by the GFM to operate neither the Wednesday nor the Saturday markets. The Standing Committee on Finance has made the following resolution which was intended to take effect in 2015.

“That the Standing Committee on Finance recommend to council a Temporary License of Occupation policy amendment that contemplates a Mobile Vendor Association fee of $3.50 per parking stall per day..”

Council will debate this issue at the regular council meeting on June 10^th and decide upon a course of action at that time. If the amendment is approved by council the annual fee to use 16 parking stall in the CP parking lot for the summer, 15 Wednesdays, would be $840. 

Why review the fees for a Temporary License of Occupation?

It has been bought to the attention of council that the current fee structure was inequitable and disadvantaged several businesses in the downtown core. Council requested that the Standing Committee on Finance (SCOF) review the fee for Mobile Vendor Associations and report back to council. This has been done.

How can council justify the increase in TLO fees?

It is incumbent upon council to treat all businesses equally. Council cannot favour nor subsidize individual businesses. The SCOF has recommended that the fee for the Mobile Vendor Association be on par with the fee for Sidewalk Cafes. To achieve parity with the Sidewalk Café fee of $100 per month per parking stall, the fee for the Mobile Vendor Association should be $3.50 per day per parking stall. 

Is the GFM a not-for-profit organization?

The Golden Farmers’ Market is a Mobile Vendor Association and I believe is not for profit, however the individual vendors are most certainly businesses and are participating in the farmers’ market with the intention of making a profit.

Will the increase result in the demise of the GFM?

It is inconceivable that a fee of $3.50 per day per parking stall would cause the demise of the Wednesday GFM. Although there are 16 parking stall in the area occupied by the GFM, it is typically occupied by 20 vendors. Hence each vendor would need to contribute $2.80 per day. 

Who pays for the CP parking lot?

The town of Golden has recently renewed the lease with CP for the use of the parking lot at $9,000 per year escalating at 3% per year for the next 3 years. This is paid for from property tax revenue. So in essence all Golden tax payers are subsidizing the Golden Farmers’ Market. 

Case on point

One of the regular vendors at the Wednesday GFM, Stoke Roasted, is from Revelstoke. The bags of coffee he sells are in direct competition to the Bean Bag coffee roasted right here in Golden. Now I encourage competition and welcome his presence however, is it fair that the town gives the Revelstoke company a better deal than the deal we give to our local businesses?

The cups of coffee he sells are in direct competition to the several coffee shops we have in town who have received their 2014 property tax bills this week. 

Every Wednesday he drives from Revelstoke and with the current cost of gas, I’m sure he spends more on gas than the $2.80 per day TLO fee for a prime location in Golden.

Most of the money he makes goes back with him to Revelstoke.

How does this help the local small downtown businesses?

Should the small struggling businesses in town have to subsidize their competition?

Next Step

The executive and vendors of the GFM will be invited to speak at the regular open council meeting at 7pm on Tuesday June 10^th. I encourage you all at attend and participate in the debate.

The opinions expressed in this blog are my personal opinions and may not represent the opinions of other councillors nor the opinions of council.