Tuesday, March 3, 2015

Kissing Business Good-Bye ... 22.5% Water Increase


And the revenue they contributed to coffers.
Some of them for 40 years.

Obviously bureaucrats and many unelected officials on "appointed committees" have never heard of Economic Value Added.
Their actions prove it.

The water authority has taken a run at us before...regularly in fact since the first run in 2005.

One of the more noteworthy runs at six commercial businesses that--because of the nature of the businesses using a large volume of water outdoors--was for a 50 per cent rate increase, "learned" in May, 2013.

The six businesses that use large quantities of (supposedly non-potable--but unchlorinated isn't available) water are Atlantis Waterslides, Art Knapp's Nursery, Swan Lake Nursery, Hillview Golf, and Highlands Golf, as well as Tekmar Industries on Silver Star Road.

As an Okanagan Basin Water Board official was recently reported saying:  "they should just suck it up and pay...they're business."

Obviously because we're all making gobs of money, as quasi-socialists believe.

Buoyed with support from yet another unelected group (OBWB), the Regional District bureaucrats with approval from the Greater Vernon board will by the year 2019 entirely eliminate the Non-Potable Commercial Irrigation category.  What had years ago been accurate classifications -- developed to reflect the various customers' water usage -- would by the year 2019 realize the vision of former disgraced Vernon mayor Sean Harvey when he banged his fist on the wooden RDNO boardroom table (I was present to witness that) and stated "Farms pay 6 cents, all others pay 70 cents" (per cubic metre of water). 

Now in 2015, the net result is that a 22.5% irrigation rate increase is slated for 2015 for we six businesses, which is 60 per cent of the catch-all category called Non Domestic and Mixed Use.

That's not all, either.

In 2016, our category will be increased yet again, to result in we six businesses being at 70% of the catch-all category.

In 2017, we'll be increased yet again, to be at 80%;
In 2018, at 90%;
By 2019, we will be at 100%. 

The question bureaucrats and unelected committee officials haven't asked is:
  Who among these businesses will still be in operation?

Who indeed...

Word has it that Hillview Golf Course--faced with a ~$10,000 increase in 2014 over their ~$33,000 irrigation invoice from 2013, will drill a well this spring for their irrigation source.  Their valley-bottom location and very high water table ensures they'll succeed in finding sufficient irrigation water.  And it won't be chlorinated...or filtered!

"That's $43,000 that won't be going into the water authority's coffers," states Kia, adding "this seesaw play of attrition will see companies fail which leads to everyone else having to make up the difference.  That's called 'economic value docked'."
 

Because bureaucrats NEVER reduce "required revenue" to match what's happening in real life.


North Okanagan water rates:
2015 Water Rates (draft), issued to GVAC meeting of March 5, 2015 for approval.
Note:  actual rate sheets begin on page 16, but you're encouraged to read pages 1 through 48. 
Note:  the Non-Domestic Mixed Use category hasn't previously existed.






No comments:

Post a Comment

Share YOUR thoughts here...