Wednesday, January 02, 2008

Is there a one area Fire tax in Vernon's future ? Will OK Landing Residents be charged $113.34 more in 2008 ?

2007 Fire Tax rate per $1000 of Improvements - Old City .9960 OK Landing .6028

The Finance Manager at a budget meeting late last year brought in a presentation of the merging of the City's Fire Department with the Landing's fire operation so we could have one uniform fire rate. There has been some discussion on this matter and the effect that it would have on both the Residential Tax payer and the Business tax payer of both the Landing and the 'Old City".

In this plan the effect in 2008 would be to transfer about $65,970 to the Residential Tax Class and lighten the burden on the Business Class by $60,254, Utilities Class $2,037 and Industrial Class by $3,178.

The Average Residential house in 2008 would pay $278.36 compared to the Old City projected rate of $297.52 ($19.16 decrease) while the OK landing projected cost of $184.18 would rise by $113.34.

It was also suggested that even if the merging of the two areas was not undertaken either immediately or in a 4 year phase in period then the Landing rate should rise at least from $184.18 to $212.54 ($28.36 increase) to cover the true costs of this service that are being borne by the Old City department that are truly the costs of the OK landing. (An overhead figure of $56,300 per year mainly for Dispatch ($25,636) and Dev. approval Permits ($20,000) and First Responder ($4,133) was debated.)

Coun Gilroy was in favour of a phased in approach while Coun. Beardsell was against this proposal. The decision on how and whether to proceed will await further discussion within the budget cycle. (Meetings Jan 4 and 17th)
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Don Quixote Notes: While as a residential taxpayer of the old City it would be nice to save the $19.16 I would only do so after a more careful examination of these numbers. Also to throw in a monkey wrench into this debate I caution Council and the Finance manager that all these figures are based on an "improvements only" basis of taxation. I would suggest that Vernon check out Coldstream's problems when they tried to use this method. See Post at Coldstream Fire Halls Financed through Property Tax full Levy . Alternatives available not attractive










Vernon presently has 2 separate Specified Area Fire Taxes, namely
Vernon Fire Protection Specified Area and Okanagan Landing Fire Protection Specified Area.
Merging them into one specified area appears to be on a "community wide basis" and taxation on the basis of improvements only does not appear to be permitted by the applicable Provincial Act.

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