The Week: We focus on how our money is spent and Wildwood: a model for Shakesides

The Week: We focus on how our money is spent and Wildwood: a model for Shakesides

A new study shows when nobody is watching, the cost of government goes up  |  Photo by Thomas Charters, Unsplash

The Week: We focus on how our money is spent and Wildwood: a model for Shakesides

By George Le Masurier

Decafnation has always given a special focus on coverage of local government in order to keep elected officials and the staff they direct accountable to the public. Because a democracy works best in broad daylight and part of our mission is to make sure the sun is always shining.

Filling out our local government satisfaction survey is one way for you to help. Another way is to read the story and browse the charts we published this week about municipal finances.

Our goal was to present some key information in an easy-to-find format. We waded through hundreds of pages of Annual Reports and Statements of Financial Information so you wouldn’t have to.

Have you taken five minutes to fill out our Local Government Performance Review? Why not do it right now?

We’ll update these charts and republish them as soon as the 2020 information becomes available later this year. In the meantime, we’re going to improve the charts with some suggestions from readers. 

You don’t have to be a numbers-nerd to take an interest in municipal finances. You just have to care how your tax money is being spent.

 

An interesting study showed that when a local newspaper closes, the cost of government increases. A professor of finance at Notre Dame’s Mendoza College of Business researched whether there was a direct line between “the loss of watchful eyes of local newspapers” and a decline in government efficiency.

You can read the study here, but here’s a spoiler alert: when nobody’s watching the cost of government goes up.

 

The story of the preservation and restoration of Merv Wilkinson’s Wildwood property by a small charitable society provides an excellent model for the Town of Comox. It shows how, with local government and community support, volunteers can turn something that was left to deteriorate into a bright community asset.

The small Victoria-based Ecoforestry Institute Society restoration of Wildwood’s abandoned forest acreage and homestead was achieved by a group of people who refused to let Wilkinson’s legacy die. They fought for the property and won a court victory.

With a strong business plan, they marshalled volunteers willing to do hands-on work and attracted donations, grants and support from the Regional District of Nanaimo. And through their passion, they delivered a success.

The small Mack Laing Heritage Society faces similar obstacles: a property abandoned and in disrepair and a legal battle. But they too have refused to let Laing’s legacy die. They too have a business plan, public support and a long list of volunteers ready to transform Shakesides into Laing’s vision.

What the Laing society doesn’t have is local government support. In fact, local government is their main obstacle.

The Town of Comox long ago turned its back on Mack Laing, misused his financial generosity and ignored his important place in Comox history. And now the current Comox Councillors want to drive the final stake through Laing’s memory.

But an open-minded examination of the Wildwood model for success could lead to a more positive outcome because Wildwood answers a key question that has plagued some Comox Councillors: how to fulfil Mack Laing’s Trust Agreement in a self-sustaining way.

Wildwood does more than pay for itself and the society’s $450,000 mortgage. It funnels money back into the economy of the Regional District of Nanaimo. It creates jobs and adds an internationally popular tourist destination to the Nanaimo-Ladysmith area’s list of popular attractions.

People come to tour Wildwood’s sustainable forest and to enjoy a stay in an environment far away from their urban daily lives. People would come to tour Mack Laing’s little sanctuary for birds, trails, Brooklyn Creek and Comox Bay and for overnight respites surrounded by nature.

 

It’s an interesting aside that when the tiny Ecoforestry Institute Society plunged into a legal battle to win control of Wildwood, they turned to Victoria Lawyer Patrick Canning. So, it’s not a coincidence that Canning is now working with the Mack Laing Heritage Society.

 

The old saying that “timing is everything” plays an important part in all of our lives and so it was for Mack Laing.

The Comox Valley Lands Trust didn’t exist in the late 1970s or even in 1982 when Laing died. If it had, he surely would have left his property with a covenant held by the Lands Trust to ensure his Trust Agreement was fulfilled.

Nor did Laing have knowledge of Trust Deeds, such as the Ecoforest Institute Society has on the Wildwood property. The Trust Deed ensures that Wildwood can never be sold to a private interest and it also defines the charitable purpose under which the property must be operated.

In other words, future Wildwood boards of directors cannot just decide to clear cut the whole thing and rake in the money. Wildwood must always be operated as an ecoforest, always within ecological boundaries.

Put in Shakesides’ terms, future councils could not have just decided to tear down his house and pour a concrete slab. Shakesides would have had to be always operated as the natural history museum that Laing envisioned.

 

The Comox Youth Climate Council has started a petition that urges local government to purchase the 3L Developments property in the Puntledge Triangle and for the City of Courtenay not to annex these lands. The petition states:

“This petition is a call to action to our elected leaders, from the CVRD and beyond, to refuse intimidation from 3L Developments or development proponents and to do the right thing to protect Stotan Falls in the long-term. We urge you to do your best to purchase the Puntledge Triangle lands and riverbed and to continue to create a network of regional parks along the Puntledge River. These purchases will contribute to increasing our social and recreational capital while also protecting our natural assets. Preserving nature not only offers many benefits to our health and wellbeing, but it also increases our resilience to climate change and prevents biodiversity loss.”

 

General Motors announced this week that it will no longer build gas-guzzlers after 2035. The company plans to be carbon-neutral in 20 years.

GM said in its announcement that, “The days of the internal combustion engine are numbered.”

The company will sell only vehicles that have zero tailpipe emissions starting in 15 years, a seismic shift by one of the world’s largest automakers that makes billions of dollars today from gas-guzzling pickup trucks and sport-utility vehicles.

Surely this will put pressure on automakers around the world to make similar commitments and embolden elected officials like Prime Minister Trudeau to push for even more aggressive policies to fight climate change: Read, abandon the TMX pipeline. 

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Elon Musk’s SpaceX plans to launch starships from ocean oil drilling platforms

Elon Musk’s SpaceX plans to launch starships from ocean oil drilling platforms

The first flight of a Long March 11 the mobile Eastern Aerospace Port on June 5th, 2019  | Photo credit: China Academy of Launch Vehicle Technology (CALT)

Elon Musk’s SpaceX plans to launch starships from ocean oil drilling platforms

BY MATT WILLIAMS

Over the years, Elon Musk has been rather open about how he (and the company he founded) plan to make space more accessible and allow humanity to become an “interplanetary species.”

A key element to this plan is the Starship and Super-Heavy launch system, which will allow for regular trips to the Moon as well as the eventual creation of the first human colony on Mars.

Another key part of Musk’s plan is the creation of spaceports at sea that will allow for greater flexibility with launches and landings. To that end, SpaceX recently acquired two former oil drilling rigs off the coast of Texas. These spaceports have been dubbed Phobos and Deimos (after Mars’ two satellites) and are currently undergoing modifications to conduct Starship launches in the near future.

For years, Elon Musk has been upfront about his plans to use floating spaceports for future Starship launches. But the first hints that they were close to realizing this goal came last summer when SpaceX indicated on their website that it was looking for experienced offshore crane operators, electricians, and engineers. The postings also indicated that the jobs were related to the development of the Starship.

More importantly, the posting specified that the positions were located in Brownsville, Texas, the closest town to SpaceX’s Boca Chica Launch Facility. 

Musk confirmed this from his own account shortly thereafter, saying that: “SpaceX is building floating, superheavy-class spaceports for Mars, moon & hypersonic travel around Earth,” later adding, “We need to be far enough away so as not to bother heavily populated areas. The launch & landing are not subtle. But you could get within a few miles of the spaceport in a boat.”

SpaceX has been recovering the spent first stages at sea for years with their drone ships, but these platforms will allow the company to conduct launches at sea for the first time.

And SpaceX is hardly alone in seeking offshore launch facilities. China has also been working on its own floating spaceport, which is located off the coast of Haiyang city in the eastern province of Shandong. Once it is fully operational, the “Eastern Aerospace Port” (as they’ve named it), will be China’s fourth spaceport and the only one that is not located inland.

Spaceports at sea offer a number of advantages over inland launch facilities. For starters, launches for inland facilities often result in spent stages falling back to Earth, which can pose significant damage to populated areas and result in hazardous chemicals and unspent propellant leaking into the ground. As such, inland facilities require extensive safety procedures and cleanup operations.

While SpaceX circumvents much of this danger by launching from Boca Chica and Cape Canaveral, SpaceX hopes to conduct regular launches with the Starship and Super Heavy. On top of that, this launch system poses a significant noise problem. Once complete, each Super Heavy will have no less than 28 Raptor engines, though Musk has hinted that initial flights will have less (Musk has estimated that it might be around 20).

With regular launches taking place, this will mean that the blast areas around the launch pads will need to be wide, and noise concerns will also need to be taken into account. Similarly, Musk’s long-term plan for making regular trips to Mars call for orbital refuelling, where a tanker version of the Starship modified to carry propellant will meet with and refuel a passenger/payload version of the Starship after they have reached orbit.

Musk has also hinted in the past that SpaceX could be conducting intercontinental flights with the Starship someday. According to an animation released by the company in 2017, this would involve having spaceports off the coast of major cities that would be serviced by passenger boats.

Clearly, launches and landing at sea have been a part of Musk long-term vision for SpaceX for awhile.

Matt Williams is a contributor to Universe Today, one of the world’s leading websites on outer space. It is headquartered in the Comox Valley.

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Wildwood: A community model for creating jobs and revenue within ecological parameters

Wildwood: A community model for creating jobs and revenue within ecological parameters

Photos of the homestead at Wildwood are courtesy of the EcoForestry Institute Society

Wildwood: A community model for creating jobs and revenue within ecological parameters

By George Le Masurier

In February of 2017, the former Comox Town Council voted to petition the BC Supreme Court to modify the Hamilton Mack Laing Trust established 39 years ago. The town’s intention was to demolish Laing’s heritage home, called Shakesides, and use the money he had bequeathed the Town of Comox for other purposes.

Although the town had done nothing to live up to the Trust Agreement for over four decades, the town now seemed anxious to get to court and proceed with its plan to replace Shakesides with a “viewing platform.”

But the Supreme Court disrupted those plans when it granted the Mack Laing Heritage Society intervenor status in the case, which would allow the society to present evidence opposed to the town’s petition.

Now, after spending more than $200,000 with a Vancouver law firm, the town appears to have abandoned its petition for unexplained reasons and has not announced any new approach to fulfilling its Trust Agreement.

But among the evidence the Mack Laing Heritage Society (MLHS) would have presented in court was a complete business plan for the restoration of Shakesides as a community project. The plan identified dozens of local businesses, tradespeople and volunteer citizens committed to providing labour, materials and donations.

The plan was “totally plausible” according to its chief architect Gord Olson, a member of the society, in part because other communities have successfully used similar plans to restore landmarks and heritage sites.

In fact, the Victoria Times-Colonist newspaper featured such a project in a three-page spread in its Saturday, Jan. 23, 2021 edition. Although larger in scale, the Wildwood forest and homestead located between Nanaimo and Ladysmith shows how a community project can create a self-sustaining job-creation destination.

 

RESTORATION OF WILDWOOD

Merv Wilkinson originally intended to farm the property he bought on Quennell Lake in 1938 and enrolled in farming classes at the University of British Columbia. But one of his professors urged Wilkinson to instead create a sustainable forest like the ones in the teacher’s Scandinavia homeland.

Over the next seven decades, Wilkinson managed a sustainable forest that today still includes old-growth trees. He selectively logged the property every five years for density, light and marketable species.

He also built a log house with stock from his property that burned down from a chimney fire. He rebuilt it again in 1965.

Wilkinson, who died in 2011 at age 97, eventually moved off the property. The Land Conservancy of BC took its management, but when the TLC proposed selling the property to a private interest, a registered charitable society went to court to keep Wilkinson’s legacy in the public domain.

The Ecoforestry Institute Society (EIS), founded in 1994 by several University of Victoria academics, eventually won a 2016 court battle to acquire the property and hold it in trust for the people of B.C.

Kathleen Code, the EIS vice-chair and communication director, told Decafnation that the society was aided by an Eco forestry Management Plan and a trust deed written by Dr. Donavon Waters, a well-known Canadian trust lawyer. The property now can never be sold to a private interest and must always be owned by a like-minded society.

But, she said, by then the homestead had fallen into serious disrepair. Wildlife and vegetation started to reclaim it back to nature, including a resident bat colony that was relocated to bat boxes.

So Code said the society created a plan to restore the homestead with the help of volunteers, community donations and financial support from the local government.

The result has been a total success, she says.

 

SELF-SUSTAINING AND POPULAR

“Wildwood is a job and revenue creator, all the while operating with its ecological parameters of the forest,” Code told Decafnation in a telephone conversation.

People come from all over the world to visit Wildwood. Some come for tours, some to see the fully-functioning forest and ecosystem, including old growth. There have been groups of Korean foresters, government ministers from Germany, delegations from Europe and more.

But some people come simply for a respite in nature. A top Holland travel agency for the well-heeled has added Wildwood to its list of recommended destinations.

“Some people come to see the famous pear tree in the orchard planted by Dr. Jane Goodall, one of Merv’s many famous friends from around the world,” she said.

Visitors can stay overnight in the log cabin homestead, which has a two-night minimum. Some guests have stayed for a week. The house sleeps 6 with 2.5 baths.

But Wildwood also rents the house for corporate retreats, weddings — one event involved more than 100 people — workshops and other functions.

Code told Decafnation that the facility is already fully-booked through mid-September of 2021.

“What a great job creator; it’s one of the new ways to develop revenue streams while keeping nature intact,” she said. “People today want an experience in their vacation, not just a destination. Vancouver Island can offer experiences in spades. We have nature at its best.”

 

JOB CREATOR

Kathleen Code’s own economic development background has helped make Wildwood a self-sustaining enterprise.

In its second full year, the property generated about $30,000 in revenue that along with continuing public donations and grants pays the society’s $450,000 mortgage, compensates the paid part-time education programmers and tour guides.

It also creates other jobs for cleaners, caterers, maintenance people, naturalists who design courses for school children and workshop facilitators for programs on bats, mushrooms, edible plant identification and health and wellness.

Code says that future building plans will require architects, engineers, construction workers and tradespeople. They also hope to add value-added products, employing artisans and woodworkers. She anticipates that these events will also help support musicians, photographers and artists.

“What a great job creator,” she said. “It’s one of the new ways to develop revenue streams while keeping nature intact.”

 

HOW THEY FINANCED IT

The Land Conservancy originally raised $1.1 million to own and steward Wildwood. Part of the funds came from Grace Wilkinson, the second wife of Merv Wilkinson, who owned three-quarters of the property at the time.

After the court victory in 2016, the Ecoforestry Institute Society paid $800,000 to acquire the property from the TLC. They relied on community donations, but the majority of the money was raised through a $450,000 mortgage provided by Vancity.

The Regional District of Nanaimo donated $150,000 and the society received a $65,000 grant from the BC Capital Gaming agency specifically for the homestead renovation.

The 14-month renovation to the building cost about $250,000. The society did its own general contracting and hired local tradespeople and purchased goods and services from local suppliers.

And volunteers donated extensive labour and materials.

The project managers scoured the island for vintage appropriate furnishings and helped repurpose and refit donations. Volunteers and EIS Board members did the interior design, dug trenches, stained woodwork, painted the bathtub and milled lumber for the bed platforms and decks.

The Homestead restoration required gutting the structure, then installing new electrical, water, heat, solar and septic systems, as well as new floors, plastered walls and new fixtures throughout.

 

WHO IS THE EIS?

Code says the EIS is a tiny society with a cohesive board that has diverse skills, including two registered foresters, economic development analyst, commercial and graphic designer, ethnobotanist, former city planner and an Indigenous liaison.

The EIS headquarters is at Wildwood although volunteer board members come from all over Vancouver Island, including current co-chair Peter Jungwirth, forester, who resides in the Comox Valley.

Wildwood Vice-Chair Peter Jungwirth of the Comox Valley

Jungwirth emigrated from Austria in 1998 with his wife, Heidi, who was originally from the Comox Valley. They met in Austria while she was teaching at an international school.

Jungwirth met Wilkinson in 1997 when he and Heidi visited the area prior to moving here permanently and was “hooked” on Wilkinson’s ideas.

“Foresters are always looking for a better way to manage forests,” he told Decafnation. “And the concept of ecoforestry hooked me in.”

Jungwirth said, “Merv’s legacy is a beautiful forest which he managed for more than 60 years that still has plenty of old-growth trees and thus is a prime teaching and demonstration forest.”

He called Wildwood the biggest hope for change in forestry in BC and the world.

“There is so much more to a forest than timber. There is food, medicine, wildlife, all kinds of vegetation, clean water & air, climate moderation, carbon storage, recreation potential and more, but above all it is an intricate ecosystem that we ought to steward and not destroy, ” he said. “For Ecoforestry, a healthy forest with a functioning ecology is the bottom line, everything else you manage for needs to submit to that goal. That is quite a contrast to industrial clearcut logging.”

Jungwirth said that the forests in Austria are 80 percent privately owned, but forest legislation does not permit anything bigger than patch cuts. With so much publicly-owned forests in BC, you would think public interests like biodiversity conservation or carbon storage against climate warming would be reflected more in the management,” he said.

He visited the Carmannah Valley after it was mostly logged and wondered “why did they have to fight so hard to keep at least some of the magnificent Old Growth forest with the tallest Sitka spruce in the world?”

“Europe made these mistakes, they took it (old-growth) all, and now there’s so little left in the world,” he said. “BC is well on its way there, too.”

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A SIMILAR PLAN FOR MACK LAING’S HERITAGE HOME, SHAKESIDES

The Mack Laing Heritage Society has proposed a plan to restore the home famous Comox ornithologist Hamilton Mack Laing. You can read the plan here.

 

 

HOW THE ECOFORESTRY INSTITUTE SOCIETY FORMED

EIS grew out of a movement in the mid-1990s as a number of academics from the University of Victoria and local environmentalists sought a better way to manage our rapidly depleting ecosystems. Founders include well-known luminaries:

Dr. Alan Drengson (contributor to the deep ecology movement and UVic Emeritus Professor of Philosophy);

Dr. Duncan Taylor (contributor to the deep ecology movement and UVic Professor of Environmental Studies);

Dr. Nancy Turner (ethnobotanist and UVic Emeritus Professor); and

Sharon Chow (Sierra Club Director for 20 years).

Merv Wilkinson himself was to become a member and was later awarded for his pioneering work in ecoforestry with the Order of Canada and the Order of British Columbia. Learn more about Merv here.

 

 

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Local governments start their 2021 budgets; who is the CVs highest-paid official?

Local governments start their 2021 budgets; who is the CVs highest-paid official?

Comox Valley local governments are planning their 2021 budgets  |  Scott Graham photo

Local governments start their 2021 budgets; who is the CVs highest-paid official?

By George Le Masurier

It’s not coincidental that Comox Valley residents receive their property value assessment notices in January just as local governments start their annual budgeting processes. Property taxes are the principal source of revenue for most BC municipalities.

By provincial law, local governments must complete their 2021 budget as part of a five-year financial plan every year by March 31. Homeowners start to receive their property tax notices about a month later.

And even though local government budget meetings are open to the public, few taxpayers attend them in order to learn how local elected officials spend our tax dollars.

Do you know, for example, how much your municipal councillors are paid? How many municipal employees make more than $75,000 per year? Do you know what we pay the RCMP for protection services or how much each government has accumulated in surplus revenue?

Have you filled out Decafnation’s Local Government Performance Review? It’s a short survey measuring Comox Valley voters’ level of satisfaction with their local governments.

With the help of a few volunteers, Decafnation has compiled data from our local government’s financial reports and broke it down on a per capita cost and compared those numbers with two of our municipal neighbours: Campbell River and Nanaimo.

We used each government’s 2019 Statement of Financial Information (SOFI) and their corresponding 2019 Annual Report as the basis for our information. The 2020 reports are not yet available.

Readers can look through all of our collected data by clicking the links elsewhere on this page, or by clicking the links to each government’s financial reports.

 

ELECTED OFFICIALS SALARIES

All Comox Valley municipal elected officials are considered part-time positions. That includes the three mayor positions and regional district directors.

Courtenay Mayor Bob Wells was the Comox Valley’s highest-paid elected official in 2019, earning $128,465 in salary and expenses from the city and the Comox Valley Regional District. The next highest mayor or councillor earned less than half of that amount.

Courtenay Mayor Bob Wells

On top of his $71,905 mayor’s salary, Wells took home another $47,810 from the regional district in director wages, committee compensation and expenses. He served as chair of the regional district board in 2019.

Courtenay Councillor David Frisch earned the second-highest amount of $60,782 from his salary of $28,021 as a CVRD director in addition to his $25,234 city council remuneration.

However, all three electoral area directors earned slightly more than Frisch because electoral area directors receive a higher base salary as their area’s only elected representatives.

Area C Director Edwin Grieve and Area B Director Arzeena Hamir both took home $64,849 in salary and expenses, while Area A Director Daniel Arbour earned $63,3472.

Comox Mayor Russ Arnott was the third highest-paid council member in 2019 at $50,158 — $38,384 from Comox and another $11,774 from his regional district duties.

On the expenses side, the top three were Cumberland Mayor Leslie Baird who claimed slightly more in expenses ($11,000) than Comox Councillor Stephanie McGowan ($10,966) and Comox Mayor Arnott ($10,234).

But all three of those expense totals were higher than any single councillor in the City of Nanaimo (highest $10,251) and all Campbell River councillors except for Charlie Cornfield who claimed $11,782 in expenses.

 

ADMINISTRATION COSTS

In a separate spreadsheet, the Decafnation volunteers broke out some of the key administrative costs of running a local government.

One of the highlights on this spreadsheet is that all jurisdictions have increased revenues year over year, in part due to the growth of the Comox Valley.

But it also shows that tax rate growth has exceeded the Consumer Price Index for British Columbia. This is also true for Nanaimo and Campbell River. Could this be because expenses have increased faster than new growth on Vancouver Island can support?

Tax rate growth is one area where public involvement in the budgeting process can directly affect the outcome.

The chart also shows that municipal expenses — the bulk of which are labour costs — have also increased year over year and exceeded the CPI in the municipalities. But not at the Comox Valley Regional District where expenses were kept a half-point lower than the five-year CPI average.

In Comox, the five-year average shows the town’s expenses outstripping revenue by more than two percent.

 

MAKING SENSE OF SURPLUSES

One of the tricky areas of municipal budgeting involves accumulating surpluses. Provincial legislation requires regional districts and municipalities to account for surpluses differently.

Courtenay, Comox and Cumberland may accumulate “unspent surpluses” that in theory can be used for any purpose in the future. There are also reserves for an intended service, such as water and sewer reserves. These can only be used for their stated purpose, and cannot be transferred for something like road improvements.

And, there is also another type of reserves that are created by council policy and not a legislative requirement. Courtenay’s Infrastructure Renewal Reserve is one example. These types of reserves could be moved from one purpose to another, but it would require a council resolution and is not a common practice.

By contrast, the regional district may only have reserves set aside for a specific service that it provides and these are usually attached to a plan for anticipated expenditures.

As you can see in our spreadsheets, the three municipalities of Courtenay, Comox and Cumberland have a combined accumulated surplus of more than $348 million and the regional district has an additional $178 million in reserve. That compares to $305 million in Campbell River and $831 million in Nanaimo.

 

POLICING COSTS

The data shows that Courtenay clearly bears the burden of protective services in the Comox Valley. It may mean that the city has been subsidizing protective services in the other areas.

Part of this anomaly occurs because Courtenay’s population qualifies it as a city, whereas Comox has been classed as a town. Those designations may change this year. If so, Comox’s share of policing will increase and Courtenay’s share will decrease.

But it is interesting to note that policing costs increased in Courtenay last year, while they decreased in Comox and Cumberland.

The RCMP manages the Comox Valley as a single detachment. The same officers respond to calls in all jurisdictions.

Courtenay paid $9,412,733 in 2019 of the Comox Valley’s total RCMP cost of $17,869,053, or 53 percent. That was an increase of 5.5 percent over 2018 and nearly triple what the Town of Comox pays.

Comox paid $3,251,181 in 2019 or 18 percent of the total policing costs. Cumberland paid four percent and the regional district paid 25 percent.

We noted that while Courtenay pays more per capita for policing than Nanaimo, policing costs represented close to the same percentage of revenue and expenses for both cities.

 

MUNICIPAL EMPLOYEES

All local governments’ financial statements include a break out of employees paid more than $75,000 per year and those paid less.

In all three municipalities and the Comox Valley Regional District, the percentage of salaries under $75,000 is greater than those paid more. But that’s not the case in Campbell River and Nanaimo. Nanaimo’s over-$75,000 salaries are 15 percent greater than those paid less. In Campbell River, the two numbers are almost even.

 

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Don’t forget to participate in our survey

Don’t forget to participate in our survey

Don’t forget to participate in our survey

By George Le Masurier
Don’t forget to participate in Decafnation’s local government performance review.
It’s a short survey so click HERE now.

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