Tax increase expected

By RICHARD ROLKEMorning Star StaffNov 19 2006 http://www.vernonmorningstar.com/
Vernonites should brace for a tax increase, but number-crunching leaves the final impact in question. The city's finance committee was told Thursday that the provisional 2007 budget calls for a 2.84 per cent hike in municipal property taxes. "We've tried to keep the increase palatable to the community," said Rob Mayne, finance manager. However, council has just started looking at the budget document and there's no guarantee the proposed increase will remain where it is. "It's reasonable to think it will stay at 2.84 per cent but who knows," said Coun. Patrick Nicol, finance committee chairman. A larger increase could be possible if new items are added to the budget. On Thursday, Coun. Jack Gilroy made a push for a third administration position at the fire hall. "It's not fair to have the workload we have on two people," said Gilroy, who is a former deputy fire chief. Gilroy says there are manpower issues when one of the two administrators is on holidays or ill, and fire prevention activities need to become more of a priority. The fire hall had three administrators prior to Gilroy's retirement. The fire chief asked for the position as part of the 2007 budget but it was not included by the finance department. "I know it's a huge expense but we need to find a way to get that position back into the hall," said Gilroy. The proposed budget is showing a slight decrease in funding for the human resources department, but that didn't stop Coun. Barry Beardsell from expressing concerns about the steady climb in recent years. "We're spending a mega-amount of dollars and we're trying to do too much too fast," he said. There is also the prospect of five new bylaw enforcement officers - two full-time and three-part time - being added to the payroll at a cost of $311,409. "It's the right direction but if that kind of enforcement is needed, the revenue must be there as well," said Beardsell. Coun. Juliette Cunningham defended the expenditure, saying the new officers will help patrol lake access sites and address public safety. "There will be an increased presence in our neighbourhoods," she said. The goal is to have council adopt the 2007 budget in early January, but Beardsell admits that there is still a lot of work to sort out items that have been cut or added. "The budget is totally alarming. This is a staff budget so far and not a council budget and I hope there will be some changes," he said.
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Don Quixote Note: The $311,409 for the bylaw officers is being financed out of Police Reserves for 2007 and therefore will have no direct effect on the tax rate. Also increased revenues collected by these positions have not been budgeted for and these will decrease taxes. The new position that Coun Gilroy is pushing for will cause the tax rate to increase unless offset by new reductions in other spending. (Like the Airport Runway reserve of even the $30,000 for Land Corps Honorariums!)