Greater Vernon Restructure Study Prepared for: The Greater Vernon Local Government Restructure Committee Prepared by: Sussex Consultants Ltd with C.L. Woodward, PCIS, P. Admin. R.A. Rabnett & Associates Doug Mackay, P. Eng. July 1991 ITable of Contents Chapter 1 Introduction 1.1 Purpose 1-1 1.2 Assumptions 1-2 1.3 Report Structure 1-3 Chapter 2 Current Situation 2.1 Introduction 2-1 2.2 Service Providers 2-1 2.3 Population 2-1 2.4 Tax Base 2-3 2.5 Total 1991 Property Taxes 2-4 2.6 Average 1991 Property Taxes 2-4 Chapter 3 Community Growth Chapter 4 Candidate Service Shifts Chapter 5 Economies of Scale 5.1 Introduction 5-1 5.2 General Government 5-2 5.3 Road Transport Spending 5-3 5.4 Environmental Development 5-4 5.5 Capital Spending 5-4 5.6 Transfers to Reserve Accounts 5-5 5.7 City of Vernon Spending 5-5 5.8 Summary 5-8 Chapter 6 Regional Municipality Option 6.1 Introduction 6-1 6.2 Growth and Tax Base 6-2 6.3 Grants and Capital Spending 6-2 6.4 Regional District Services 6-6 6.5 Municipal Expenses 6-8 6.6 Municipal Revenues 6-16 6.7 Tax Impacts 6-21 6.8 Uncertainties 6-25 Chapter 7 Large Vernon Option 7.1 Introduction 7-1 7.2 Growth and Tax Base 7-2 Contents 7.3 Grants and Capital Spending 7-2 7.4 Regional District Services 7-5 7.5 Municipal Expenses 7-6 7.6 Municipal Revenues 7-8 7.7 Tax Impacts 7-10 7.8 Uncertainties 7-12 Chapter 8 Expanded Vernon 8.1 Introduction 8-1 8.2 Growth and Tax Base 8-2 8.3 Grants and Capital Spending 8-2 8.4 Regional District Services 8-4 8.5 Municipal Expenses 8-5 8.6 Municipal Revenues 8-8 8.7 Tax Impacts 8-10 8.8 Uncertainties 8-12 Chapter 9 North Municipality 9.1 Introduction 9-1 9.2 Growth and Tax Base 9-2 9.3 Grants and Capital Spending 9-2 9.4 Regional District Services 9-3 9.5 Municipal Expenses 9-6 9.6 Municipal Revenues 9-12 9.7 Tax Impacts 9-15 9.8 Uncertainties 9-17 Chapter 10 Okanagan Landing Municipality 10.1 Introduction 10-1 10.2 Growth and Tax Base 10-2 10.3 Grants and Capital Spending 10-2 10.4 Regional District Services 10-4 10.5 Municipal Expenses 10-5 10.6 Municipal Revenues 10-8 10.7 Tax Impacts 10-8 10.8 Uncertainties 10-10 Chapter 11 Summary of Results 11.1 Vernon's Perspective 11-1 11.2 Coldstream's Perspective 11-4 11.3 Okanagan Landing's Perspective 11-6 11.4 North and East Areas 11-9 11.5 Regional District Perspective 11-12 11.6 Conclusion 11-13 Chapter 12 Framework for Analyzing Restructure Options Contents ii IList of Tables 2.1 1991 Study Area Population 2-1 2.2 Responsibility for Local Services 2-2 2.3 Municipal Tax Base 2-3 2.4 Total 1991 Property Taxes 2-4 2.5 Taxes Paid by an Average Home 2-6 3.1 Population and Housing Changes 3-2 3.2 Annual Growth Projections 3-3 5.1 City of Vernon Spending Per Person 5-6 6.1 Municipal Population 6-2 6.2 Total Assessments 6-2 6.3 Short-Term Grants 6-4 6.4 Incorporation Capital Fund 6-6 6.5 N.O.R.D. Requisition 6-7 6.6 Municipal Expenses 6-15 6.7 Municipal Revenues 6-21 6.8 Tax Rates 6-22 6.9 Impacts on Swan Lake Properties 6-27 6.10 Impacts on Keddleston Properties 6-28 6.11 Impacts on Okanagan Landing Properties 6-29 6.12 Impacts on Vernon Properties 6-30 6.13 Impacts on Coldstream Properties 6-31 6.14 Tax Impacts on an Average House 6-32 7.1 Municipal Population 7-2 7.2 Total Assessments 7-2 7.3 Short-Term Grants 7-3 7.4 Incorporation Capital Fund 7-4 7.5 N.O.R.D. Requisition 7-6 7.6 Municipal Expenses 7-7 7.7 Municipal Revenues 7-10 7.8 Tax Rates 7-11 7.9 Impacts on Swan Lake Properties 7-13 7.10 Impacts on Keddleston Properties 7-14 7.11 Impacts on Okanagan Landing Properties 7-15 7.12 Impacts on Vernon Properties 7-16 7.13 Tax Impacts on an Average House 7-17 Contents iii 8.1 Municipal Population 8-2 8.2 Total Assessments 8-2 8.3 Short-Term Grants 8-3 8.4 Incorporation Capital Fund 8-4 8.5 N.O.R.D. Requisition 8-5 8.6 Municipal Expenses 8-7 8.7 Municipal Revenues 8-10 8.8 Tax Rates 8-11 8.9 Impacts on Swan Lake Properties 8-13 8.10 Impacts on Keddleston Properties 8-14 8.11 Impacts on Vernon Properties 8-15 8.12 Tax Impacts on an Average Home 8-16 9.1 Municipal Population 9-2 9.2 Total Assessments 9-2 9.3 Short-Term Grants 9-3 9.4 Incorporation Capital Fund 9-5 9.5 N.O.R.D. Requisition 9-6 9.6 Municipal Expenses 9-11 9.7 Municipal Revenues 9-15 9.8 Tax Rates 9-15 9.9 Impacts on Swan Lake Properties 9-18 9.10 Impacts on Keddleston Properties 9-19 9.11 Tax Impacts on an Average Home 9-20 10.1 Municipal Population 10-2 10.2 Total Assessments 10-2 10.3 Short-Term Grants 10-3 10.4 Incorporation Capital Fund 10-4 10.5 N.O.RD. Requisition 10-5 10.6 Municipal Expenses 10-7 10.7 Municipal Revenues 10-8 10.8 Tax Rates 10-9 10.9 Impacts on Okanagan Landing Properties 10-11 10.10 Impacts on an Average Home 10-12 11.1 Tax Impacts on a Vernon House 11-3 11.2 Tax Impacts on a Coldstream House 11-5 11.3 Tax Impacts on a Okanagan Landing House 11-8 11.4 Tax Impacts on a Swan Lake House 11-10 11.5 Tax Impacts on a Keddleston House 11-11 11.6 Impacts of Altered RCMP Costs after 11-14 Restructure Contents iv IList of Charts 2.1 1991 Municipal Tax Base Per Person 2-3 2.2 1991 Property Taxes Per Person 2-5 3.1 Average Household Size 3-2 5.1 Per Capita Legislative Expenses 5-9 5.2 Per Capita Administrative Expenses 5-10 5.3 Per Capita Other General Government 5-11 Expenses 5.4 Per Capita Total General Government 5-12 Expenses 5.5 Transportation Spending per Kilometer 5-13 5.6 Per Capita Environmental Development 5-14 Services 5.7 Per Capita Capital Spending from Taxes 5-15 5.8 Per Capita Transfers from Reserve Accounts 5-16 6.1 Projected Spending per Capita 6-14 6.2 Extra Taxes Due to Restructure 6-24 7.1 Projected Spending per Capita 7-8 7.2 Extra Taxes Due to Restructure 7-12 8.1 Projected Spending per Capita 8-6 8.2 Extra Taxes Due to Restructure 8-12 9.1 Projected Spending per Capita 9-10 9.2 Extra Taxes Due to Restructure 9-16 10.1 Projected Spending per Capita 10-6 10.2 Extra Taxes Due to Restructure 10-10 Contents v ",- j- Chapter 1 IIntroduction 1.1 iPurpose This study examines the impacts of substantial changes in the local government structure of the Greater Vernon area. It was prepared for the Greater Vernon Local Government Restructure Committee: • Mayor Wayne McGrath, City of Vernon • Mayor Ernie Palfrey, District of Coldstream • Director Alan Hill, Electoral Area A • Director Mike Kowaluk, Electoral Area B • Director Joan Yardley, Electoral Area C In conjunction with this committee there was also a technical committee consisting of: • Peter Mackiewich, Administrator, Regional District of North Okanagan • Blake Kimura, Administrator, City of Vernon • Greg Betts, Administrator, District of Coldstream The study was funded by a grant from the Organization Policy Branch of the provincial Ministry of Municipal Affairs, Recreation and Culture. This report concentrates on five main forms of restructuring: • Creating a regional municipality of 40,000 people that includes Vernon, Coldstream, Okanagan Landing, and the area immediately north and east of the existing city boundary (BX and Pottery Road areas); • Creating a large Vernon of 32,000 people, the same as the first option except that Coldstream would not be part of the large municipality; • Creating an expanded Vernon that includes the north and east areas next to the existing city boundary; • Creating a brand new municipality in Okanagan Landing • Creating a brand new municipality in the north and east areas combined. A map showing the study area and its components is included in a pocket at the end of this report. Introduction 1-1 1.2 JAssumptions A great number of assumptions are a necessary part of a study like this. The major ones are described below. Others are identified as they are encountered in the text. , All dollar amounts are stated in terms of constant 1991 dollars. Inflation will affect almost all of the numbers in this report. A low-to-moderate growth rate has been assumed. This is not intended to be a prediction. A low growth rate is selected because the goal is to isolate and identify the impacts of local government restructuring, not the impacts of rapid community growth and development.