Anatomy of a tax increase (Details Part 3 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 second of a 3 part post will address the details within the SLA session.
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At the end of the second session the running total for the tax increase was $505,650 (2.089%). Council in the final session on Jan 25th effectively reduced the proposed tax increase to $490,086 ( (2.025%).

The Council changes to the budget in this section were approval of various Capital works Programs 2010-2014 City of Vernon Proposed Financial Plan. - 21.53MB ). A Net Total of $15,564 (- .074%) were deducted from the budget. (Capital projects were increased by a net of $171,500 and (-$187,064) net were taken from or sent to various reserves to finance these projects to arrive at the final interim tax increase of 2.025%:

Highlights within this section included:

• By moving Capital Project 13 (23rd ) (-828,000) below the line the 3 TDM projects for Sidewalks ($400,000), Trails ($250,000) and Cycling ($150,000) were put back into the budget. The newly requested Kosimo Trail project for $50,000 was to be financed from the TDM Trail budget. Net saving to taxpayer of $28,000.
• Medical Clinic Site- New project for stage 1 costs for park (see details here) in amount of $199,500 (.824%) was approved by a 5-1 vote. (Baumbrough absent) (Spiers opposed)
  
• At this point the tax increase had increased to $677,150 (2.797%)
• Additional Transfer from reserve RCMP (tax equalization category) for 75,117 to cover excess fine money from previous year 2009)
• Additional Transfer from reserve RCMP (tax equalization category) for 178,000 to cover excess fine money from 2008)
• Transfer from salary Reserve of 2008 balance of $176,000.
• At this point the tax increase had decreased to $248,033 (1.025%)

• 2 motions proposed by Spiers were unanimously agree to address the "infrastructure deficit".
  

1. The Unallocated 2009 surplus would be transferred to a newly created 'infrastructure deficit reserve'.
2. Starting in 2011 1/3 of all New Growth Taxation would be transferred into 'infrastructure deficit reserve' (on P. 5 of budget Non Market Value Growth in Taxation for 2009 was estimated at $747,984.)

• Council then passed a notion to put an additional 1% tax increase ($242,063) into the infrastructure deficit reserve. 5-1 vote (Spiers opposed)(Baumbrough absent)
  

The proposed tax increase is $490,086 ( (2.025%).

This interim budget will be subject to public input in Early March after any minor tinkering from Council including a possible discussion on business tax ratios.
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http://vernonblog.blogspot.com/2010/01/anatomy-of-tax-increase-details-part-1.html
http://vernonblog.blogspot.com/2010/01/anatomy-of-tax-increase-details-part-2.html