Anatomy of a tax increase (Details Part 1 of 3) (1%= 242,063)

'The anatomy of a tax increase' VERNON posting gives an overview of how Council took a staff budget containing a 0% tax increase and reviewed it and morphed it into a 2.02% tax increase. This posting which will be the first of a 3 part post will address the details within each of the various sessions.

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The first part of the budget details the staff changes that were made that corrects some of the items that were included (duplicated) or excluded in error. The staff were quick to make these corrections before the budget was reviewed. These corrections brought the staff budget in at $92,876 surplus (-.384% tax decrease).
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The Council changes to the budget were basically a review of the departmental budgets and Council managed to increase this surplus by $294,027 (-1.215% tax decrease). Highlights within this section included:

• eliminating budget for insurance for Medical Clinic building that we are tearing down. ($3500)
• Increase revenue from BC Gas Franchise ($15,350) (Phone call to Terasen to get exact amount for 2010. (It is based on 2009 collections from customer -payable in Nov. 2010)
• Increase Fire Recoveries to $42,500 ($33,745) Fire Chief confirms that line item was underestimated.
• Remove Grants for Art Policy - a line item ($23,500) that was a product of the past. Reserves had built up to in excess of $60,000. (capped)
  
• Remove Social responsibility Grant $50,000
  
• Use Casino Reserve to Fund Council Discretionary and Community Grants ($150,000)
• Reduce Auxiliary Training Expense - (a line that had been in budget for at least the last 3 years and the most ever spent was $12,000 with an average of about $5,000 per year was cut in half ) ($15,150)
• Update Council Indemnities for Correct CPI - Council Salary was corrected to reflect correct CPI change of 1% that all Council will get as a salary adjustment in 2010. ($2782)(originally budgeted at 1.1%)
• A motion to reduce the Mayor's discretionary fund from $13,568 to $8568 was defeated on a tie vote.
• A motion THAT the indemnity of $137.00 per meeting for Council Members be a separate line item in the budget, and any excess at the end of the year be placed in the Community Grants Account. (passed 5-2) (There is $32,000 set aside in 2010 budget for Council Committee Claims)

At the End of this portion of the budget deliberations before we go into the SLA (Service level adjustments) the tax decrease stood at $386,903 (- 1.598)

P.5-23 of Agenda Package (These are the approved minutes for the Jan 13 and 15th all day sessions.) Most of the votes for above can be found here)
The orginal Presented Budget Package can be found at 2010-2014 City of Vernon Proposed Financial Plan. - 21.53MB