Budget 2007 Airport Reserve $300,000

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  According to the 2006-2010 Budget there is a planned $300,000 TAXES in 2007. (Future years indicate $350,000 (2008) $250,000 (2009) $250,000 (2010).
  
  
  
  
  
  It has been indicated by Mr Hawes of the Airport Corp. (the ones who don't get honorariums) that Extending the Runway was not the main priority but they wished to be in a position to explore this possibility when it made sound business sense to do so. “It’s not the centre of what we’re doing,” he said. “Unless something dramatic happens, we won’t be focusing on it.” The possibility of a major manufacturing concern that would provide 50 jobs or more and required a longer runway to accommodate their business is an example of the kind of enterprise that may cause a runway extension re-examination in the future.
  
  It is obvious that this is a case where the runway may never be extended and to tax present day taxpayers for a nebulous future possibility is asinine if not criminal. When the economic stimulus occurs in the form of business demand then a business plan for such an extension will be presented and the form of financing required will be debated and taxpayers that will benefit in the future will be taxed.
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  Present Runway Reserves Monies held by Airport Corp.
  The City transferred $250,000 in 2004 and 2005 and another $250,000 is authorized for 2006. This money totals $750,000 and after paying the $340,000 for the extension in summer of 2006 to creek's edge leaves a total of $410,000. This money should be returned to the city to be placed in an Airport Runway Reserve account. The City is getting a full report of the Capital expenditures that have occurred at the Airport and the total may a little lower. (No doubt the City will take into account that in 2004 the City transferred $357,458 for future expenditures (of which $250,000 was for runway reserve as noted above) and an additional $68,940 for tarmac improvement.
  The additional $360,000 that may be a part of the Airport 2007 budget request for paving of an area referred to as Exit Charley on the South side of the Airport should be treated as a new capital request.
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  Should the Airport be part of the Regional Economic Function or at least be funded by regional taxpayers?
  Councillors also raised the issue of regional funding for the airport. Coun. Juliette Cunningham said it doesn’t make sense to have a regional function for tourism and economic development if other members of the North Okanagan Regional District won’t be contributing to the airport. She said that several businesses outside of Vernon use the airport. “If they’re not contributing very much . . . It’s not fair to Vernon taxpayers,” she said.
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  Don Quixote Recommendation:
• Save $300,000 by not placing any money in reserve for an extension that may never happen. If we continue to do so we will just create another pot of money from which we can get another ill located round about or worse! (naturally the $850,000 for 2008-2010 should be scapped also.)


• Whatever is left in the Airport reserve fund after a decision on Exit Charley ($360,000) should be applied against the accumulated airport deficit ($98,498 at 2005 year end) so we can tidy up this enterprize in case it turns into a regional function as it should be.

This $300,000 is 2.04% of the 2.84 proposed tax increase. Only .80% ($117,600) to go before we get into tax decrease territory.