BUDGET 2007 ASSISTED HOUSING RESERVE $150,000

According to the 2006-2010 Budget there is a planned $150,000 TAXES in 2007. (Future years indicate $150,000 (2008) $50,000 (2009) ($200,000) DRAWDOWN in (2010).

In 2004 $330,000 was reallocated from the Policing Reserve and put into this fund. The reserve stood at $350,000 at 2005 yearend after $150,000 was put in through taxation and $130,000 was used to finance the DCC's for the Good Samaritan Society's project on 20th avenue, and $150,000 was put in through taxation in 2006 to bring the present balance to $500,000. (There is no indications that there will be a drawdown in 2006 although I heard rumours of a $65,000 DCC draw by a Qualified Housing project.)

The taxpayer have in effect paid $630,000 into this reserve and only $130,000 has been used in 3 years.

The effect of the $130,000 is quite interesting when it is examined. The City gives the Good Samaritans $130,000 to cover the cost of the DCC's. The Good Sam. give the city the $130,000 back for the DCC's and the money is put in the DCC Trust Account to be used as the developer's share against a future DCC authorized project. As most projects are financed 60% by DCC's (developers) 20% by taxpayers and hopefully 20% by SR. Government grants (or taxpayers if no grants obtained) this in effect helps the developers. If we changed the DCC bylaw to charge nominal DCC's ($1) on clearly qualified low income housing society projects of this type, we could forgo this sorry use of our tax dollars by in effect giving taxpayer money that will be credited to the Developer's DCC Trust Fund.(naturally as a sharp eyed blog reader realized the DCC rate would have to be adjusted marginally upward to preserve the DCC Funding Formula)
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Don Quixote Recommendation:

• As this reserve has $500,000 in it and has had little attraction to fund the DCC's for this type of housing (even if the $1 DCC's proposal is not built into DCC bylaw as it should be) then this Reserve fund should be capped at $500,000 and the purpose of this Reserve should be re-examined. (Part of the original motion by Coun Beardsell in 2004 was the original $330,000 startup money must be returned to the Policing Reserve if this Reserve was cancelled!)
• There should be no taxation for this reserve in the 2007 year. (saving $150,000)
• Reexamination of taxation in the 2008-2010 period.

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This $150,000 is 1.02% of the 2.84 proposed tax increase. When combined with the 2.04% from the Airport Reserve ( Airport Reserve Budget Saving ) this leaves us with a tax reduction of .22% or $32,340.