RDOS balks at proposed tax hike

JOHN MOORHOUSE Friday, February 27, 2009 Penticton Herald:
A proposed 13.4 per cent tax hike has Regional District of Okanagan-Similkameen directors heading back to the drawing board. The draft financial plan, put before the RDOS board Thursday, calls for an overall tax requisition of $12,525,000 -- up from $11,050,000 in 2008. Debra Potter, the regional district‘s manager of finance, said this includes $355,000 for “new” budget items such as $150,000 for an agricultural wood waste chipper program, $45,000 for plastic recycling and more than $37,000 for the regional growth strategy. Potter noted the B.C. Assessment Authority‘s freeze on property assessments at 2007 levels, resulted in an overall assessment increase of just 1.8 per cent while the RDOS surplus revenues have dropped by 23 per cent.

However, regional directors balked at giving initial support to the financial plan. Instead, they opted to hold another special budget workshop next Wednesday, the day before their March 5 regular board day. Summerland Coun. Gordon Clark said he wanted more time to review the budget in detail, noting he had only received his copy of the thick budget document Thursday morning. “An issue with this size of a budget increase is a serious one,” he said. “People don‘t realize how dire the economy is.” Clark pointed to the City of Vernon which has adopted a budget with a zero per cent tax increase for 2009. Penticton Coun. John Vassilaki agreed that more time is needed for a full budget review. “Those figures are just not palatable to me,” Vassilaki said. “The City of Penticton is also trying for a zero increase.”

Penticton‘s share of the regional district‘s total proposed tax requisition is $1,638,000, while Summerland faces a $673,000 levy. Other directors voiced concerns about individual budget items. Naramata director Tom Chapman described the $150,000 for a wood chipper as a huge hit on the budget. He suggested the regional district look at less expensive alternatives, such as a “curtain burner” utilized by the City of Kelowna. In addition to chipping removed fruit trees and other agricultural waste, Chapman said the RDOS could soon face a massive amount of wood waste from beetle-infested pine trees. Michael Brydon, director for West Bench-Okanagan Lake West, wondered if the RDOS should eliminate its financial support for the Okanagan Film Commission, noting the industry is now well established in the Valley. The RDOS has budgeted $34,500 (identical to 2008) towards the commission which had requested a $50,000 grant this year. After considerable debate, the RDOS opted to hold another budget session next week. The budget must be adopted by the end of March.