KIRNDEEP NAHAL
A letter sent on behalf of the Chamber to the City of Vernon
To: Mayor and Council, City of Vernon
From: Greater Vernon Chamber of Commerce
Subject: Impact of Facility Fee Increases on Vernon’s Non-Profit Community
Dear Mayor and Council,
We are writing in response to the letter received from the City of Vernon CAO Mr. Peter Weeber which focused on a response to the increased fees associated with the Vernon Farmers’ Market.
Mr. Weeber’s letter was sent to the Chamber following a 45-mintue meeting between Mr. Weeber, our board and members of our Advocacy Committee. The letter disappointingly characterized this meeting to a singular item and organization and did not address broader concerns raised, which included the negative economic and social impacts on numerous non-profit organizations and our community resulting from the City’s decisions related to the use of their facilities. In some cases, groups have experienced significantly higher increases due to reclassification or contractual changes.
The Greater Vernon Chamber of Commerce has a membership of 685 members who contribute to the local economy and many of which are impacted by the increased facility fees. Of these members there is a large group of non-profit organizations.
Non-profit organizations—largely driven by volunteers—bring immeasurable value to Vernon. Their work supports seniors, mental health, youth sports, local food security, the arts, cultural vibrancy, social housing and more. Many of these organizations rely heavily on revenue generated through community events and modest government support. With rising inflation, reduced grant availability and broader economic pressures, the ability to fundraise through events is more critical than ever.
Since 2023, the Chamber has been advocating for equitable treatment of non-profit user groups. In this effort we created a task force, gathered comparable data from other communities and submitted letters recommending that Council address the issues with service levels and reject the fee increases proposed by a third-party consultant, particularly as the consultant dismissed relevant comparable data citing “political sensitivity.” Despite these efforts, Council approved two 5% increases and more recently an additional 2% levy as recommended by Mr. Weeber which occurred within weeks of our meeting.
In 2024 we witnessed troubling outcomes from these decisions the following is a highlight of a few:
1. Okanagan Military Tattoo
A beloved cultural event, was forced to fold due to an unsustainable $35,000 rental fee. Held at Kal Tire Place for 10 years, this event showcased Canadian military bands and celebrated patriotism and community. The $35,000 rental fee for five days (setup, rehearsal, performance) ultimately rendered the event unsustainable. The City has now lost not only that $35,000 in direct revenue but also the broader economic benefits associated with 400 entertainers who would have stayed, dined, and spent within Vernon. Additional losses include MRDT revenues and other visitor-related spending.
2. Vernon Farmers’ Market
Lost 30% of its vendors during peak season after fees were increased by 300%. This non-profit supports tourism, food security, and local artisans. In 2023, the City tripled its rental fee from$4,000 to $12,000 for use of the Kal Tire Place North parking lot. Aside from electrical service and access to public washrooms, no additional amenities are provided. With few other viable spaces, the Market had no option but to accept the increase. The result was a 30% drop in vendors in 2024, with many choosing more affordable communities. For comparison, the Kamloops Farmers’ Market pays just $700 annually for use of downtown city blocks and adjacent parks, hosting approximately 120 vendors at peak season.
3. Creative Chaos
Western Canada’s largest summer craft fair, will operate at a financial loss for the first time in its 50-year history due to a 30% increase in rental fees. This iconic craft fair has supported the Vernon economy since 1971 through tourism, entrepreneurship, and community spirit. Run entirely by volunteers, it operates on a break-even model. For 2025, however, it is projected to incur a financial loss following a 30% rental fee increase. The organization was also reclassified from the “Community Use” rate category (reserved for free-entry non-profits) to a “Private Sponsored” category, despite not charging ticketed admission.
In a recent survey, non-profit user groups were asked if the felt facility pricing was competitive with similar pricing elsewhere and 91% responded no. They were also asked based on the Recreation Services Manual of Fees and Charges, if they felt that they were charged appropriately for their type of event and facility and 50% said they were overcharged.
Non-profit organizations operate on the principle of reinvesting into the community for the greater good. If current trends continue, “non-profit” may become a literal outcome as organizations may be unable to sustain operations altogether.
These decisions not only ignore financial realities but also dismiss the critical social and economic value these groups provide. The Greater Vernon Chamber is once again calling for immediate attention to this matter and respectfully requests that Council:
- Audit the fee categories applied to all non-profit user groups to ensure appropriate classification;
- Reassess both past and proposed fee increases to evaluate their impact to help ensure the continued financial viability of these organizations;
- Assess and review the framework for service levels to ensure alignment with current operational demands, stakeholder expectations and performance benchmarks.
- Implement a transparent subsidy framework that enables strategic investments in organizations generating proven economic and social returns;
- Foster a culture that recognizes and supports the economic and social contributions of non-profits, rather than positioning them as a source to backfill City budget
We urge you to take these concerns seriously and act in the best interests of the entire Vernon community.
Sincerely,
Kirndeep Nahal
President, Greater Vernon Chamber of Commerce
Kirndeep Nahal is President of the Greater Vernon Chamber of Commerce
