Government Debt = Our Debt

Debt.  Debt.  Debt.

In British Columbia, the DAILY interest payment is $6.84 million.
Interest only!
Per day.

Debt continues to grow at a rate of $215 per second!
$12,854 per minute, $771,233 per hour.
$18.5 million per day.


British Columbia's debt by the year 2016 was forecasted by our provincial government to increase to $69.7 billion.

That's the provincial government.

The Federal government of Canada?
The fed spends $31 billion per year just paying the annual interest on the debt.

The Canadian Taxpayers' Association stated:  "Between 1997 and 2008 the federal government was running surplus budgets and paying down our debt. Every cent and more of that $105 billion paid-off during the decade has now been re-borrowed and spent. Canada’s federal debt has risen from $457 billion in 2008 to over $600 billion."

Un-bloody-believable, huh?

And our cities and municipalities aren't doing taxpayers any favors either. 
No debt transparency exists in the District of Coldstream or City of Vernon.
Good luck looking for a line "Total Debt" on their requisite annual Financial Statement.
You won't find it.

It brings to mind a response from Coldstream's Councillor Kiss--after the District was berated by residents several years ago for their burgeoning debt--"we can be $19 million in debt."   (Coldstream was $3 million in debt at that time).
$3 million then for a population of approximately 10,000 people.
But $19 million debt is allowed by provincial legislation.
How nice!
That legislation was written by the same government that wrote the provincial legislation are the ones who are paying almost $7 million in interest payments.

The District of Coldstream's 2012 Annual Report is a 72-page document-- the Financial section begins on page 30 -- good luck finding what Coldstream's total debt is.

And, lest a reader thinks this article is sour grapes for the NDP losing the May provincial election, let me assure you it is not.
Vehemently assure you it is not!

Back to debt.

Trying to access British Columbia's "debt clock", as suggested by today's Morning Star on the topic, resulted in this prompt:

Secure Connection Failed

An error occurred during a connection to www.debtclock.ca..

SSL received a record that exceeded the maximum permissible length.

(Error code: ssl_error_rx_record_too_long)  The page you are trying to view cannot be shown because the authenticity of the received data could not be verified.
  Please contact the website owners to inform them of this problem. Alternatively, use the command found in the help menu to report this broken site.

How convenient.

Probably crashed from 4.4 million B.C. residents trying to access the clock.

Yet everybody--and I mean everybody--hears government agencies warning consumers to lower their household/family debtload. 
What a crock!

Still a fervent believer in what levels of government are telling you?
Place this book on your Must Read list:  Anatomy of a Con Job, by John T. Wolfe.
 
A quotation to pique interest...er....ah...learning:

“In times of universal deceit, telling the truth will be a revolutionary act.” —George Orwell

"I'm uncharacteristically speechless," sighs Kia.

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."