Sunday, April 7, 2013

..............................Selected Newsclip - Morning Star...............................

"Director Gyula Kiss would like to see revenue generation shift from user fees to taxation. "With water rates, you always have to guess how much (money) you need," he said. "If people reduce water, revenue is less so you have to increase rates."(Above article).
Indeed I did say that and a lot more. Without the context it does not make much sense. So, here is the context:

First I reflected on the fact that after 12 years and about $70 million investment we achieved a quality of water from Duteau Creek that matches the Kal Lake quality prior to the installation of the ultra violet treatment facility there. Kind of small return for the investment!

Then I commented on the fact that GVW currently collects about $8.1 M annually for future MWP infrastructure. The problem is that if we plan to finance our future MWP through an annual contribution of $8.1 M the current contributors may never see the end result. They are paying for something that will be enjoyed by future generations, not by them.

Solution: prepare the plans, borrow the funds and pay back the funds using the $8.1 for the financing. That sum could finance a loan of about $115 million. However, we don't need to collect those funds in advance, we collect them when payments are due. I am against collecting large sums of money in advance (slush fund?).

The mode of collecting the funds for infrastructure financing is another problem. We just approved the borrowing of $7.5 M for playing fields. Mode of financing: taxation not user fees. Why is taxation not the right method of water infrastructure financing? Coldstream Council has adopted the idea. Water rates are very complicated source of revenue due to conflicting objectives (i.e. encouraging waters conservation at the same time ensuring needed revenues are available). 

Basically, those were the comments I made at the above meeting.


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The opinions expressed by "Coldstreamer" are strictly his own and do not represent the opinions of Coldstream Council!

Because I value your thoughtful opinions, I encourage you to add a comment to this discussion. Don't be offended if I edit your comments for clarity or to keep out questionable matters, however, and I may even delete off-topic comments.

Gyula Kiss;


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About Me

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I have been a resident of Coldstream since 1976. I have had 15 years of experience on Council, 3 years as Mayor. As a current Councillor I am working to achieve fair water and sewer rates and to ensure that taxpayers get fair treatment. The current direction regarding water supply is unsustainable and I am doing all I can to get the most cost effective water supply possible.