City hammers out 1.9 per cent increase

Published: February 24, 2009 7:00 PM Richard Rolke - Vernon Morning Star

The tax bill for most Vernonites has become a lot clearer. Council voted Monday to move ahead with a 1.99 per cent residential property tax hike as part of the 2009 budget. That translates into $19.75 for the average assessed home. “It’s a fair tax increase given the economic situation,” said Coun. Buffy Baumbrough. Staff had informed council that the tax increase needed to cover city services was 4.82 per cent if fire protection is included. But that figure dropped to 1.99 per cent because of savings the city incurred by the North Okanagan Regional District no longer providing some functions. “It covers everything. I’m pretty happy with it,” said Coun. Jack Gilroy of the 1.99 per cent. A final decision on the 2009 tax increase comes after weeks of discussions among staff and council, and input from the public. “We’ve given it a lot of deliberation and thought,” said Baumbrough.

Opposition to the tax hike came from Councillors Bob Spiers and Patrick Nicol. “I wanted another budget meeting so we could cut it further,” said Spiers. “There are revenue areas we’ve underestimated and costs we’ve put in the budget we should reexamine.” Nicol insisted that actual salary costs be compared to those detailed in the budget, convinced savings could be found. “We should look at the entire budget,” he said.

While the tax increase for the average home is 1.99 per cent, the true impact will depend on the assessed value of each property. In the case of Okanagan Landing, residents are anticipated to pay about $80 more for integration of fire taxation. Under provincial legislation, the city’s budget must be approved in May, so Monday’s actions allow for that process to continue over the remaining five council meetings. The budget bylaw will be presented to council for first readings March 9, and then there will be a public input session March 23. It’s anticipated the budget will be adopted by council April 14 and the tax rates bylaw will be adopted April 27.

Two more items were added to the budget Monday, including an extra $45,800 for O’Keefe Ranch and $15,000 towards hiring a geographic information system worker on contract. However, these items will be covered by reserve funds.

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EDITORIAL Tax increase hard to swallow Published: February 24, 2009 7:00 PM

Everyone knows the economy is in a slump. And if you haven't yet been laid off, had your position cut back or your resources trimmed at work, consider yourself lucky. But whether you're working or not, the tough times are hitting families and individuals equally. Between rising gas costs that are forcing increased food prices, to landlords hiking the rent to cover high utility bills, the community as a whole is feeling the pinch. Even those who were a little more prepared with some retirement investments are finding their savings, and themselves, suffering a major loss. Particularly if the ripe retiring age of 65 is creeping up on you. Those who have a little more time might be able to regain what has been lost in investments. Therefore when municipalities throw a tax hike into the mix, it only adds insult to injury.

Sure the tax hike is only 1.99 per cent or $20 more (for the average homeowner), but when you consider that Vernon residents have been faced year after year with increases, it adds up. If you live in the Okanagan Landing, that price jumps another $80 more for the integration of fire taxation. On the other hand, it's understandable that the city still has to provide services. There are still roads to repave and sewer pipes to repair. However, although some councillors are patting themselves on the back for the relatively small increase, they should keep in mind the bigger economic picture. We think, like the two councillors who voted against the budget hike, that a more appropriate outcome would've been no increase in taxes this year. Maybe it's worth another look before first reading.