Wednesday, March 20, 2013

Barry Beardsell Weighs In


Former Vernon councillor Beardsell's letter to the editor, March 17, 2013 entitled Fiscal Challenges Add Up to Say No  (to the May referendum on the sports track at the College) tells it from an accounting and debt angle.

Affectionately called Dr. No during his council tenure, Barry is an accountant.
So he knows numbers.
And he knows planning processes that rely on numbers.

(Links were added by blog author).

"Greater Vernon is facing some difficult financial decisions regarding aging and inadequate recreational and cultural facilities.  In addition, the future cost of maintaining and replacing city infrastructure is a major concern.

"...$7.5 million referendum funds...borrowed at 4.1 per cent interest ... sit in an account earning about 1 per cent interest.  Meanwhile, we are making payments on the debt."  Beardsell

There is demand for a new museum and art gallery.  The politicians state that the need for a new pool be considered in 2014.  Where would it be constructed?  We are deficient in parks and facilities (we have no track and field facility).  We are told that Civic Arena will need to be replaced very soon.  Where will the replacement be constructed?

"...$13 million annual deficiency...infrastructure."

The obvious location is the area of Kin Race Track.  The multiplex was built with an ice plant sufficient to handle two sheets of ice.  Unfortunately, local government has allowed the horse racing issue to drag on for years with no resolution.   Horse racing is in decline everywhere and Vernon is no exception.  Kin Race Track needs to be set aside for a higher and better use.  The issue was before the Supreme Court of B.C. and rather than letting the issue drag on forever, let the court make a determination.

Financially we should be aware of what many consider to be financial mismanagement:
  • Another $100 million for required improvements to our water system.
  • The gifting of $1 million of land to Okanagan Regional Library, with the result that the city had to purchase another property at a cost in excess of $1 million for the proposed 25th Avenue extension.
  • The lack of transparency regarding the repairs to the venting system of the swimming pool.  These repairs are necessary because of the complete failure of due diligence in the early 1990s.
  • The failure of the regional district to implement new development cost charges at a cost to the taxpayers of $500,000.
  • The fact that the $7.5 million referendum funds of 2003 have been borrowed at 4.1 per cent interest and they sit in a savings account earning about one per cent interest.  Meanwhile, we are making payments on the debt.
  • The City of Vernon assuming the full costs of maintaining Polson Park and assuming all future improvements even though it is used by most of the North Okanagan.
  • The agreement whereby the city will transfer millions of dollars worth of our land to the regional district and give up voting rights on park matters.
These are just some of the problems.

We have incurred the debt of $10.5 million for the two floors at the hospital, will now have to borrow a further $5.5 million and have already taken on $59 million in debt related to the new hospital tower.  This debt is just part of the $80 million that we are responsible for, along with the adjoining hospital district.

How will the city fund replacing city infrastructure over the next 15 years?  There is an estimated $13 million annual deficiency related to our infrastructure.

The city is in the middle of a core review.  It does not know how it can handle its existing financial problems.  Local government must implement a comprehensive 10 year plan which must address and define our needs and what we can afford.

The formation of the North Okanagan Sports Society should be able to assist but our elected officials must take the lead.

Vote "no" in the upcoming referendum and then the politicians will be forced to take a more sensible approach and let the taxpayers make informed defisions and hopefully result in our community being financially affordable."  Barry Beardsell

"Borrowed at 4.1 % and sitting in a 1% account," declares Kia, "sounds like NDP-trained bureaucrats are already here."


2 comments:

  1. I fully and entusiastically support the complex and will be voting "yes". I understand it costs money, but I'm willing to pay my share to build a better community that promotes a healthy lifestyle now and for future generations. Though I am glad to have people keeping tabs on the money spent building etc. these things. I think they are a big benefit to communities, but have to be done responsibly.
    In a related story, I read with interest how Enderby can't get doctors. Sorry, but there are other communities that offer better lifestyles, and I can't blame doctors for choosing those places to raise their own families.
    I don't want ours to be an empty community, I want it to be vibrant.
    I hope others agree with me and the complex wins the vote, but I respect your opinion and your vote. We'll see. Thanks for the read and the forum to discuss.

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  2. Good for you, but I'm beginning to think the downtown Wesbild/racetrack site is better, as others have stated. Near hotels, restaurants, entertainment, bathrooms, adequate parking, etc., all within walking/biking distances.

    Whereas college site equates to everybody travelling by car, even from downtown. Nobody staying at a downtown hotel is going to hike or bike up that monstrous hill.

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