Roads drive up tax hike

By Richard Rolke - Vernon Morning Star - February 24, 2008

Fixing up Vernon’s road network could hit taxpayers in the pocket. The draft 2008 budget had called for a 3.49 per cent residential tax hike, but that could possibly climb to 4.1 per cent after council added $94,000 for road rehabilitation Friday. “We have to reinvest in the city,” said Coun. Jack Gilroy of keeping up with infrastructure upgrades. “I’d like it to stay to 3.49 per cent, but that could be difficult.” A staff report indicates that it costs $1,601,700 to construct a kilometre of a 14-metre-wide road, including curb, gutter and sidewalk on one side. But while road improvements could potentially drive taxes up, there is no guarantee 4.1 per cent will be the final figure. “The budget process is not finalized yet,” said Kevin Bertles, finance manager. That’s also the view of Coun. Barry Beardsell.“There’s still a lot of give and take in the budget and that’s not what we have done yet,” he said.

Coun. Pat Cochrane is convinced a 4.1 per cent tax increase can be avoided. “We have to keep up with road work but I believe the budget can be brought down,” he said, adding that one way of doing that is to use a projected surplus from 2007. The 2008 municipal budget — which doesn’t have to be adopted until May — will be the focus of further meetings. “Council will look at other things to trim it down,” said Mayor Wayne Lippert. One financial idea that was thrown out Friday is establishing a reserve fund to purchase new transit buses.“If you don’t want the ability to buy these things, no one will drop them out of the sky for you,” said Coun. Patrick Nicol.Nicol believes there is a growing public interest in expanding the transit program. “It’s a significant direction of the official community plan and transportation plan,” he said.