Tuesday, February 16, 2016

New Math at Greater Vernon Water?


That must be it.
It's GVW's version of new math.

According to Gyula Kiss' blog, "the Board approved a policy of sharing the base fee and user pay policy (consumption) on a 50-50 basis.  To an average person that would mean half of the revenues are collected on user pay, the other half on base fees.  Not so with the Greater Vernon Water Utility!"

"A full 78% of revenues is collected off domestic customers.  These customers pay their water bills on the basis of a 63% (base fees) and 37% (consumption fees).

This results in $9,868,600 base fee revenue to $5,790,700 consumption fee revenue.  Domestic customers control only 37% of their water bill.  So it is more beneficial for customers to use the water they need and don't worry so much about drastically cutting back on their consumption.  The more you save the higher your rates will be!  You may pay $30 more but you will get 40 cubic metres of water instead of 10.

If you worry about water shortages:  it cannot happen.  If we are running short of water, we get the drought management plan imposed on us."


Gyula Kiss' comments were based on this February 12, 2016 Morning Star story by Rolke:

"RDNO moves water budget ahead...

The latest financial plan for Greater Vernon's water utility didn't draw any debate.

There was no discussion Wednesday as the Regional District of North Okanagan board gave approval in principle to GVW's budget, including an average two per cent rate increase.

"We've hashed it out at the Greater Vernon Advisory Committee," said director Mike Macnabb when asked why there were no comments at the board table Wednesday.

"We had two or three meetings on water and we looked at options."

The budget includes $5 million for new projects and $4 million for work carried over from 2015.

Among those projects moving ahead are replacing water meters, expanding dam capacity and extending the Kalamalka Lake intake.

Macnabb doesn't believe there should be many public concerns about the budget.

"It's essentially status quo.  It's a small increase," he said.

While there is an average two per cent rate hike for 2016, all customers' bills will vary depending on their water use."


GVW's new math


"Board members obviously believe that 63/37 is really, really, really close to the approved 50/50," suggests Kia.

The new math.


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