NEWS PENTICTON WESTERN
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VOL. 49 ISSUE 6
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WEDNESDAY, January 21, 2015
City short-listed for Golden Scissors award
POWER RATES PENTICTON WESTERN TAX KONANZ
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sports New track for Penticton BMX gets rolling after city presentation
NEWS Steve Kidd Western News
Helena Konanz was the lone councillor to vote against approving the City of Penticton’s budget this week. She gave two reasons: too many new positions being added to city administration and a rise in electrical rates higher than she thought was necessary. Konanz decided to take action by introducing a motion that the 2016 budget be based on the lowest possible increase in electrical rates. It’s important to deal with it now, she said, because staff begins work on the budget in the summer and she doesn’t want them to lock in a higher rate. And that, she continued, will forestall concerns over having to return to the budget to find or cut another $230,000, as councillors were told during the 2015 budget deliberations. Council found itself handcuffed during budget talks, Konanz said, after staff used the middle of three pricing options to calculate electricity rates. She would rather start the increases at the lower purchase price from Fortis. “Because we have been doing that for multiple years, the compounding factor is affecting our residents and our businesses and our schools,” said Konanz, who has argued the increase should only be applied at the purchase price level. “Right now, our rates are far above almost every community in B.C. for residential,” said Konanz, adding that commercial rates are an average of $7,000 a month higher. “We need to adjust that and address those problems.” Industrial customers have pointed out the strain high electric costs are putting on them, as has the Okanagan Skaha School District, which is one of the electric utility’s largest customers.
“That is one of the things we are really looking at at the school board,” said board chair Linda Van Alphen. Not only does the cost of electricity affect their budget directly, but they are also affected by parents having to choose between heat and food. Students come to school hungry, putting an increased reliance on school lunch programs. “I think the city has to realize this. There are going to be consequences that nobody could predict,” said Van Alphen. Konanz made it clear she wasn’t asking for a freeze. Council could decide later to raise the rates, if needed. “I think it is important to realize that we need to treat it (electric rates) like a tax,” said Konanz. “It benefits the community a lot, the profit we make. Council needs to be able to look at it, if we decide we need money next year — more profit next year than we already have — then we can raise electric rates, just like we raise taxes.” About $3 million of profit from the city’s electric utility is transferred to the city’s capital budget each year, along with $2.2 million the city charges the utility for administration costs. Other money gets paid into the utility’s reserve fund to pay for future improvements and upgrades. “Money can still go into these reserves, but we may need to take away from our growing administration costs,” said Konanz, which she says has grown $300,000 in the last few years. Konanz’ motion passed 4-3, with Couns. Campbell Watt, Andre Martin and Max Picton joining her. Coun. Judy Sentes was strongly opposed, taking exception to Konanz’ comments about increased staff, which Sentes said were thoroughly justified. “There has been a misrepresentation in the language this evening,” said Sentes. “We have proven through business case scenarios where we need new people.”
150 FAIRVIEW PLACE • PENTICTON • 250-493-1233
COAT OF MANY COLOURS — Penticton artist Jordan Straker with his wood carving replica of the coat of many colours which inspired the song of the same name, recorded by country singer Dolly Parton in 1971. He is sending the work as gift to Parton for the March opening of her Dollywood theme park in Tennessee. Read the full story on Straker on PG. 19.
HUGE
We are clearing out products in all the departments to make room for the new Spring selections. Savings up to...
Mark Brett/Penticton Western News
WINTER
CLEARANCE!
50% OFF
the regular price on select items. While quantities last.