6.81% Tax Increase to be Recommended ?

Last Budget Meeting Monday at 2. The finance committee will reconvene Monday to decide how they will pay for the $1,010,158 or 6.81% budget shortfall for 2007.

Don Quixote's suggestions to reduce shortfall:

• Budget for at least $200,000 more of an increase in building fees. The reserve balance for development excess revenue was $236,693 at 2006 year end. There is an acknowledged $350,000 excess (or more) in 2007's building permit fees. Last years 5 year plan had indications of a $142,000 draw down in 2007 but this is obviously not needed. Surely a reserve of $586,693 will give enough comfort even in a conservative budget to raise revenue target by $200,000. (1.34%)


• Draw down the policing reserve fund to the $1,000,000 Council Policy Cap. My best guess and I'm conservative is a $350,000 (2.36%) saving if not more. The 2006 reserve balance was $1,493,000 and the excess $493,000 was used for the bylaw officers at $311,409, a 2006 RCMP contract correction of $120,000 odd with the balance being drawn to 1,000,000 policy cap. However in 2006 the excess of budget over expenses will be in the $350,000 to 460,000 range and will be available to be applied to the budget deficit.


• The snow removal reserve had a surplus balance of $307,075 at 2006 year end and indications from a Dec. 5 article is that VERNON $194,000 spent $476,000 budget in 2006. (budget surplus at that point $282,000.) Even at the $25,000 to $45,000 range per snowfall since we should save at least $100,000. The snow and ice control budget is projected to be $394,985 in 2007 (from 2006 5 year plan) The reserve of $407,075 or more seems excessive. Draw down $100,000 (.67%) or lessen 2007 budget forecast by same amount in the snow and ice control section of budget.


• $200,000 + $350,000 +$100,000 = $650,000 (4.38%)

These possible areas of saving are not the only ones. The Airport Capital and operational budget still has a lot of wiggle room. Hopefully the council will not cut Honorariums for the Vernon Land Committee but pay them in the form of meeting fees or expense accounts as it appears in the budget discussions. The possibility of a cross the board departmental cut of 2 to 5 % should also be discussed.