Economic theory meets political reality in Vernon

Problematic city approach

Photo: Contributed

Farshid Keramat says Vernon's current approach is failing because it is treating residents as customers and the city as a business. Communities thrive when governments invest in the collective good, not when every interaction is treated as an accounting entry., he says.

As someone who works in public policy, I have seen what happens when economic theory is applied without regard for how communities actually function.

When Vernon elected a mayor with a background in economics and planning, I hoped that experience would translate into practical, community-minded decision-making. After watching the direction of City Hall over the past several years, that optimism has faded.

It is clear the city has embraced what economists call the “Benefit Principle”. This is the idea that every park, rink and community hall must pay for itself through user fees rather than being supported by taxes.

In theory, it is intended to prevent “free riders”. In practice, it has reshaped how Vernon treats charities, neighbouring communities and long-standing local events. Under this model, charities have lost access to reduced-rate classifications and visitors now face exorbitant tiered fees, currently $18 for a single visit to the recreation centre.

The consequences are no longer theoretical. Local non-profits are struggling to stay afloat as rental fees for city facilities have skyrocketed. The Vernon Farmer’s Market reported losing nearly a third of its vendors as city rental fees tripled between 2022 and 2025. The Okanagan Military Tattoo, a decade-long tradition, was cancelled after the city demanded $35,000 to rent Kal Tire Place. Even Creative Chaos, Western Canada’s largest summer craft fair, anticipated its first-ever financial loss due to a 32% rent hike. Those are not isolated complaints.

The Greater Vernon Chamber of Commerce has spoken out sharply, pleading with city council to reconsider fee increases that threaten the very viability of our local economy.

Here is why the city’s approach is failing—residents are not customers and a city is not a business. Communities thrive when governments invest in the collective good, not when every interaction is treated as an accounting entry. By treating our regional partners as revenue streams rather than neighbours, we undermine Vernon’s strategic position as a regional hub. When neighbouring residents feel unwelcome or kept out by high admission rates, they stop coming to support our local shops and festivals. We are effectively trading decades of regional cooperation for a few extra dollars at the turnstile.

There is also a glaring contradiction in the city’s messaging. While promoting fiscal responsibility, Vernon has repeatedly overspent its own budget. Council approved $136 million for the new Vernon Active Living Centre, a massive project funded by long-term debt, while existing facilities could have been refurbished for a fraction of the cost.

Ironically, the city is pricing out the very visitors whose contributions could help offset these debts. Meanwhile, property taxes continue to climb. Council kept the latest tax increase to just under the 10% psychological barrier only by delaying a planned infrastructure levy. That kind of creative accounting does not save money, it merely postpones the inevitable.

The good news is 2026 is an election year. Now that we have seen the outcome of these policies, we have the opportunity to change course before more financial and communal injury is caused. As any economist will tell you, once decline becomes structural, it is very hard to reverse.

Farshid Keramat is a policy analyst and law instructor at the University of the Fraser Valley with deep roots in Vernon.