Bureaucrats Turned Capitalists, and Back Again

A blunt description of Greater Vernon Water.

Gougers.
Creative accountants.

Was there even a water emergency this year?
Stage 1 water restrictions--threatened during late August to be extended to Stage 2--wasn't really necessary, was it?


The GVW water bureaucrats seemed almost surprised when revenues fell as people started conserving water.
The GVW water capitalists seem determine to fund the Master Water Plan despite the failure of the $70 million borrowing referendum for their six projects last winter.

"The big question is...is the reduced consumption request (by imposing Stage 1 restrictions) justified?

 Is the reduction in revenues resulting from the reduction in usage justified?

Will the increased rates to recover shortfalls of revenue be justified?"  G.Kiss

 

First, today's Morning Star story, entitled "Utility Looks at Revenue", by Rolke:

"It may appear that Greater Vernon is awash with cash but revenue flow could slow to a trickle yet.
Greater Vernon Advisory Committee directors were told Thursday that utility revenue is up $1.2 million for the first six months of 2015.

'Summer started earlier this year and revenue spiked,' said Stephen Banmen, general manager of finance.  'There have been concerns about water restrictions and the impact on water revenue and what we're looking at is revenue is ahead of the game.'

Compared to 2014, consumption fee revenue for the first two quarters has gone from $2.8 to $3.6 million, or an additional $800,000.

Base fee and other revenue are ahead of 2015 budget projections by $400,000.

Higher revenue had been anticipated in the 2015 budget because of a two per cent rate increase.  The current trend isn't expected to continue.

'Overall consumption is down for the third quarter so we won't meet budget projections in the third quarter,' said Banmen, adding that those figures aren't compiled yet.

A report states that if fourth quarter consumption is the same as 2014, third quarter consumption would have to drop 22 per cent from the same period in 2014 to not meet revenue targets.

Director Gyula Kiss raised some questions Thursday.  'Are we charging too much?; said Kiss, who also wanted to know if a 2016 rate hike can be avoided.

No commitment was made either way.  'We will have that discussion,' said chairperson Juliette Cunningham of upcoming budget talks."    Morning Star Sept.4/15.


As Director Kiss asked some time ago:  "The big question is...is the reduced consumption request (by imposing Stage 1 restrictions) justified?  Is the reduction in revenues resulting from the reduction in usage justified?  Will the increased rates to recover shortfalls of revenue be justified?"

Gyula Kiss continues to make lucid observations:

First, the 40 year water demand chart:

The next chart shows the actual consumption table put together from the water utility's Annual Reports spanning 2011 to 2014.  Note the difference in predicted and actual consumption.  Did we build too large a system?  Did we pay too much for it?  If we were expecting to use 9,670 in 2011, should we not use that figure as the base for the 10 per cent reduction in water consumption?  After all, the utility was predicting that volume!  If the planners expected to have the consumption based on those figures, is it not possible that our water rates are influenced by the reduced consumption?  If we cannot provide the necessary volumes today (at 6,000 ML per year), what can be expect in the year 2062?

"...to be in the Stage 1 zone in September, we would have to

 use over 7,000 MLs from the Duteau reservoir.

 Is this likely to happen?"  G.Kiss.

     

Below is the July 15th volume graph, with some explanation.  During the first nearly three months of hot weather, GVW customers used about 4,000 MLs of water from Duteau.  On September 14th, GVW advises that the irrigation system will begin its Fall shutdown.

In order to be in the Stage 1 zone in September, we would have to use over 7,000 MLs from the Duteau reservoir.  Is this likely to happen?

Repeating the big question from Director Kiss:

"Is the reduced consumption request justified?"
"Is the reduction in revenues resulting from the reduction in usage justified?"
"Will the increased rates to recover shortfalls of revenue be justified?"

Oh...almost forgot the photo of yet another weather system inundating the Aberdeen Plateau area, this time on Tuesday, September 1st, 2015:

And repeating a simple chart, courtesy of Citizens for Changes to the Master Water Plan, showing what bureaucrats-turned-capitalists have created.

"The road's probably still too muddy to update the August 15th reservoir level to reflect actual storage versus estimated numbers," offers Kia.

No doubt.