A taxing situation

Published: March 03, 2009 7:00 PM Richard Rolke - Vernon Morning Star

Nobody, absolutely nobody likes paying taxes. Most of us would rather have a root canal than have more cash yanked out of our wallet. But as the old saying goes: there are only two certainties in life — death and taxes. And the primary reason for that is people are a demanding bunch. We want sidewalks, we want cultural services and we want open spaces and parks. Of course some of the services we get are essential in nature, such as firefighting, police and sewer, while others are truly out of our hands — ie. bylaw staff issuing parking tickets and the Pleasant Valley Road roundabout. I bring all of this up because some politicians continue to claim Vernon council is hitting residents too hard with a 1.99 tax increase or an extra $19.75 a year for the average assessed home (obviously it will be less for those who are below the average and higher for those above the average assessment). But the reality is that 1.99 per cent doesn’t even reflect the cost of living and that just like any of our homes or businesses, the city must cover its expenses, whether it’s labour or utility bills.

It should also be pointed out that the city’s infrastructure is falling apart, and anyone who has navigated the canyons posing as potholes on 27th Street knows that first-hand. So when you consider roads, sewer lines, water pipes, sidewalks and bridges, bags and bags of cash will be needed to make a difference. And 1.99 per cent doesn’t cut it. By now, some of you are probably thinking that I’m oblivious to the recession and the financial turmoil many of you are facing personally. Unfortunately, though, that isn’t the case as I know people who have been handed pink slips or have seen their hours slashed. But no matter what the economy does, the business of government comes with a price, and the public — both those working and unemployed — will continue to place demands on the system. However, now is certainly a time for restraint and I believe the City of Vernon has been highly responsible. First of all, the budget deliberations have been more extensive than I can ever remember, and there has been an unprecedented opportunity for the public to provide input on how the 2009 financial plan should develop (although attendance has been poor). Secondly, new expenditures have been added to the budget, but they are virtually all being covered by surplus funds from some reserves. Among them are four support staff at the RCMP which will hopefully improve its service to the public, and an employee to pursue alternatives modes of transportation — something the public supported strongly in the official community plan.

For those politicians who aren’t satisfied with the 1.99 per cent and insist it could be chopped further, one has to wonder if they are truly interested in the bottom line for citizens or just trying to make some political points. Residents will have one last chance to provide commentary on the proposed 2009 budget March 23, but if it’s anything like the previous sessions, they will endorse the document and its tax increase simply by their absence.

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Don Quixote Note: It is obvious that Mr. Rolke has bought into the belief that the average homeowner is only facing a $19.75 or 1.99% increase. The actual figures show a 8.35% or $80.01 increase for that average house in the Okanagan Landing and a -2.61% or $27.83 decrease for the Rest of the City.

If we use the NORD tax reduction's for taking over EC. Dev. etc. then the Landing's tax bill is reduced to a 5.43% or $52.02 INCREASE while the Rest of the City taxpayer will have a tax decrease of -5.24% or $55.82

The other major change that must still be considered is that this tax shift will be accomplished by taxing all Fire Costs on to LAND and improvements in 2009 for the first time since the amalgamation took place. (Previously fire costs were only charged on improvements) This will mean an increase of about 20-25% for a piece of raw land with no house valued at the same price of the average house. ($418,676)

And by the way, Richard the cost of living in Canada is 1.4% as of dec. 2008 and heading lower.