The Council delayed final setting of the tax rates for 2007 at Monday's Council meeting. They will have a special meeting to finalize the rates.
The delay was caused when Council accepted a motion from Coun. Beardsell at the Morning Cow Meeting asking the beleaguered Finance Manager Mr. Bertles to bring back a report indicating the rates that would be needed if Vernon moved to the Langley Utility rate of $40.00/ 1000 of assessed value. There would be an immediate effect on 2007 Utility class revenue and a more pronounced effect in 2008 and the out years when the Vernon's New Control Centre came on line. Langley was chosen as a comparative target because it was chosen along with Vernon to have the only two BCTC Control centres in the province. The lateness of the study was caused by the policy of BC Hydro and presumably BCTC paying their taxes with a 'Grant in Lieu of Taxes' on a one year delayed basis. (i.e. 2007 rates and assessments would be paid in 2008 etc.) The Motion was passed unanimously and the Council took up the matter at the afternoon session.
At the afternoon session the two positions with Utilities at a 15.2146 rate or at a 40.0 rate were handed out. The net effect of the 40.0 proposal was to increase taxes on existing utilities by an further $118,788 with $83,000 of this revenue going to reduce the additional residential tax increase from $353,000 TO ONLY $275,000. The effect on the out years Control Centre increase the revenue from $330,157 to $868,000
After some debate the decision to table the tax rates to a special meeting was made by Coun. Nichol and seconded by Coun Cunningham and passed with little opposition.
* In all cases these calculations have not included fire rates that are listed separately on Vernon's tax bills.
Tax rates to be set later this week. Special meeting time to be posted as soon as available !
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