Friday, March 28, 2008

Coldstream axes taxes

Jennifer Smith - Vernon Morning Star - March 28, 2008

Taxpayers could see some relief in Coldstream as taxes are proposed to drop from 9.17 to 6.95 per cent for 2008, plus the potential for an even bigger cut. Following the 2007 year-end review, Coldstream has found itself in better-than-expected financial shape. Extra funds have come from building permits that were significantly higher than budgeted, there was $100,000 less in RCMP costs and lower road repair and maintenance costs. The additional funds are proposed to drop the tax increase and beef up some reserves and budgets for 2008. While the tax hike is targeting 6.95 per cent, that number could drop even further if some councillors have their way. “I’d like to get it down to 5.5 per cent if we can,” said Coun. Glen Taylor. News of additional funds came as a surprise to most councillors, including Coun. Doug Dirk who motioned to table the issue for a special meeting – to be held at the municipal hall at 4 p.m. March 31.

“I for one would like to have a broader discussion rather than the knee-jerk reaction we’re having here,” said Dirk, pointing to how the initial budget was deliberated for weeks before being finalized. “When the first budget came to us it was a wish list but it was like a 25 per cent increase and we worked that down.” The current proposal would see $15,000 added to the equipment replacement reserve, $50,000 to the snow removal budget, $15,000 to the furniture and equipment budget for the new fire halls as well as $5,000 for signage for the halls and $100,000 added to the building stabilization reserve. Taylor would like to see less funds used for the building stabilization reserve and more put towards reducing taxes. But Catherine Lord, director of financial administration, reminded council that building up this fund might be a wise decision if building slows. The reserve was set up in 2006 to stabilize budgeting for the building inspection function. It currently carries a balance of approximately $55,000. “That’s to take care of the ups and downs of building permits every year,” said Lord.

Evidence in Coldstream’s building inspector’s reports for January and February show that the number of permits issued are down so far this year compared to the same time last year. For January three permits were issued, with a construction value of $660,000, compared to January 2007 when 10 permits were issued with a construction value of $2.2 million. For February, five permits were issued, valued at $1.06 million, compared to seven permits in February 2007 worth $1.098 million.

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