Don Quixote's Kick at the budget (1%= $163,406)

In order to help the Council members examine the 3.49% staff budget tax increase I suggest that they get the following answers that may aid them in tightening up this budget:

• Last year staff made the phone call to Terasen and found the actual revenue that would be coming for the Franchise Fee. It was $45,000 more than originally budgeted. This year we have budgeted the same as that revised figure of $570,000. Since we have had more houses built and as they do use gas one would expect an increase. Make that Phone call and get exact figure.(p.21)
• BC Hydro Grants and taxes revenue is budgeted at $150,000. After examination of last years grants etc. I estimated that because of the new utility rates that were passed last year that this grant revenue is underestimated by at least $35,000-$50,000. My estimates are rough as I do not have access to the two properties 2008 assessments ? (p.21)
  
• For the first time a $128,000 expense for BC Gas LILO 5% Rental Payment is put into budget. P.15 DEBT. Is this a new charge and for what ??
• RCMP P.37 There is a $702,728 charge with $455,600 for 4 sergeants and $247,128 for 4 watch clerks and 1 record reviewer. This would indicate a $58,560 per month charge. If these positions haven't been filled then a reduction in 2008 charge must be estimated. I have heard only of 1 sergeant being promoted so far and I have seen no advertisements for the other jobs ?
• In the Service level adjustment pages there are other new employee positions being proposed. They should be examined to see if they have been hired and if not then a monthly recalculation credit to the budget should be made.
  
• In the Service level adjustment pages the Finance department uses a loading factor of 22%. In several other departments in this section a different HIGHER loading factor is used. Assuming the loading factor that should be used is 22% the budget must be adjusted downward in; Is Dept. $5538 s/b 5184 ($354 saving), Fire Dept. $15074 s/b $14739 ($335 saving), Fire Dept $47,700 s/b 46,640 ($1060 saving). There are other loading in this area that are loaded directly into the Pay Grade but %age is unspecified that should be reviewed.
  
• In the Service level adjustment pages there is a $10,000 item for an Economic Impact Study re Air Traffic classified as a capital item. Funding is through General Taxation. The Airport Capital Reserve Account should contain $110,000 at last reporting and could be used to meet such requests.
• There is no mention in this budget of using the Fringe Load Variance Reserve that stands at $490,000
• In 2006 the net operating surplus was $1,554,000 and it was sliced and diced to various reserves. This surplus was in addition to the RCMP surplus that was placed into that reserve and drawn upon in 2007 to reduce taxation required. The 2007 operating surplus has not yet being announced but we do know that there is enough of a 2007 RCMP surplus to cover the additional 9 staff members in that department of $702,528. Any amount above that will (?) be used to further reduce taxes and maintain a $1,000,000 balance in the RCMP Contingency Reserve.
  
• We can speculate that there is at least $1,000,000 in short term financing revenue under budgeted in 2007 and $300,000 or more in building permit fees. I have a case of beer that the operating surplus will once again be in excess of $1.5 million. Council may have already decided to use some of this surplus to cover the Middleton Way project in 2007 but how much and if this was done is unknown? This is a source of funds to reduce the tax increase in 2008?
• The Assisted Living Reserve should have a balance of $490,000 in it after we covered $60,000 for the Hospice House's DCC's and other permits. The DCC bylaw will soon allow the waiving of DCC's for low income nonprofit housing and as this was the purpose of this reserve it must be reviewed and a determination of the reallocation of this money. When this reserve was set up $330,000 was transferred from the RCMP reserve and the stated intention was that it would be returned if it was not used for the original purpose.(See below)
  
• REGULAR OPEN MEETING OF COUNCIL, JANUARY 10, 2005 MINUTES
  ASSISTED LIVING POLICY-FINANCIAL PLAN (360-28)
  Moved by Councillor Cochrane, seconded by Councillor Hall:
  
  THAT Council supports the Finance Committee’s recommendation that the interim draft policy regarding assisted living be approved,including the Mayor’s Task Force to recommend a final policy for Council’s consideration; AND FURTHER, that the City of Vernon establish a $500,000 Assisted Living Reserve in 2005 by:
  (i) Deleting the emergency generators ($120,000) from the
  capital budget;
  (ii) Reducing the R.C.M.P. contract expenses by $50,000; and
  (iii) Re-allocating $330,000 from the Policing Reserves;
  
  AND FURTHER, that one-half of one percent of the annual tax revenue may be dedicated towards the reserve starting with the 2006 fiscal year.
  Draws on the Reserves will be based on a sliding scale as follows:
  
  • 1 to 25 units 100% of City DCC payable
  • 26 to 50 units 75% of City DCC payable
  • 51 to 75 units 50% of City DCC payable
  • 76 to 100 units 25% of City DCC payable
  • over 100 units 0% of City DCC payable
  
  CARRIED.

• Check and confirm all reserve balances and their purpose.
• This list will be updated and revised as I find the answers to these questions. Additional items will be added if they have any possibility of reducing our tax burden.
• Discussion of any possible changes to the tax ratios that may affect Residential Taxpayers will be posted as these debates occur at Council.