Penticton to argue for firefighting funds

JOHN MOORHOUSE 2009-09-29 Kelowna Daily Courier:

Penticton city council wants a piece of the provincial government‘s pie when it comes to taxes on fire insurance premiums. A Penticton-sponsored resolution to be debated at this week‘s Union of B.C. Municipalities convention in Vancouver calls on the province to release insurance premium taxes to local governments to defray the cost of fire protection. Mayor Dan Ashton said Monday since quick action by firefighters minimizes property damage, insurance companies tend to be one of the prime beneficiaries through lower damage claims. “The province collects a 4.4 per cent tax levy on insurance premiums paid in B.C.,” he said. “It‘s the thought of some (on council) that these taxes should be directed to the municipalities that are actually providing that benefit for the insurance companies.”

Penticton council approved the hiring of four additional firefighters earlier this year, plus a second deputy chief. The move added $195,200 to this year‘s budget for roughly half a year and will cost the city $425,000 in 2010. “Fire department costs keep rising because the public expects a higher level of service,” Ashton said. “Our costs continually go up for protective services.” The mayor noted although property owners living within a fire protection area do receive lower insurance premiums, that difference isn‘t huge.