Hurry up and wait. Target Tax Hike Back to 2.84%

Don Quixote Observations from Last Finance Meeting of 2006.
The City of Vernon's Finance Committee elected to stand pat with their budget at $1,010,158 representing a possible 6.81% despite the Chairman's desires to increase it with more money for Transit expansion and sidewalk linkage between Shubert and Halina centres. ($50,000 ?). With a resolution proposed by Coun. Cunningham and agreed to by the 3 man committee the financial staff was instructed to review all departmental spending and all available funding methods to reduce the impact to the taxpayers to a target of 2.84% ($421,300). The Finance department has been tasked with coming up with $588,858 in savings.

A rather small operating surplus of $780,000 was projected consisting mostly of debt reduction charges of $471,000 with the balance of $309,000 mostly being building permit fees revenue increases.

There was confusion with the state of the Capital Budget of the Airport and where it stood and whether taxiway Charley would ultimately be financed in 2007. There is $300,000 in the budget for this now along with the $113,333.04 on the Airport Books in capital reserve. (The estimate for this project varies from the $360,000 estimate of Mr G. Hawes in September to the $380,000-$440,000 range that Mr. Go estimates as revealed at yesterday's meeting.)(The unaccounted for $126,045.29 for capital spending in 2005 will be tidied up in the new year reporting from the Airport Committee)

The final bombshell from the finance committee meeting was the indication of the state of the Policing reserve. There seems to be little excess from 2006 policing despite the fact that Vernon operated at least 3.5 officers short against budget for the entire year. This $350,000 minimum budget excess that should be in the reserve at year's end was taken out by Bylaw # 5039 passed July 24/06 in only the second "financial plan " amendment bylaw ever passed by this city. (Ironically, this was the farewell meeting for the previous financial administrator !)

I will be posting a detailed description of this sleight of hand that is contrary to the policy of Council of voting on changes to this Policing reserve in an open forum with transparency and clarity.