Richard Rolke - Vernon Morning Star Published: January 26, 2010 7:00 PM
Vernon residents are facing a tax hike, but much of the money will go towards aging infrastructure. Council voted Monday to increase residential property taxes 2.02 per cent as part of the proposed 2010 budget, and no major changes are now expected. “It’s pretty much there. There might be some minor adjustments,” said Mayor Wayne Lippert. The impact of a 2.02 per cent increase on the average home is estimated at $21.30 The tax increase had been sitting at 1.02 per cent after some capital projects, such as a new downtown park, were included in the budget. But a majority of council then decided to add a further one per cent to go towards an infrastructure reserve. “We need to have more (money) available as infrastructure falls apart,” said Coun. Mary-Jo O’Keefe. The city has projected that it could cost $115 million to replace aging infrastructure such as roads, sidewalks and bridges. “We have a mandate from the government to look at the infrastructure deficit,” said Coun. Jack Gilroy. Support for one per cent in taxes going towards capital reserves also came from Coun. Shawn Lee.“It’s a baby step but we have to do it,” he said.
Lone opposition came from Coun. Bob Spiers, who has been pushing for no tax increase. “I want the budget to come in at a lesser increase,” he said. “If we got it down to minus three per cent, I’d be happy to bring it back up for the infrastructure deficit.” Spiers is urging his colleagues to keep sharpening their pencils. “Look at the budget list and reconfirm they (expenditures) should be on there,” he said. “There are things on there that I believe shouldn’t be there.” But Spiers also did his part for future infrastructure upgrades by successfully having one-third of the expanded assessment from rezonings, subdivisions and new buildings go into an infrastructure deficit reserve. Unallocated surpluses from 2009 will also go towards the reserve.
The next step in the budget process is for the necessary bylaws to come before council for consideration. Public input will also be sought before the final budget is considered for adoption in March. Coun. Patrick Nicol is pleased with how the budget process has unfolded.“Everyone put their shoulder to the wheel and worked really hard. It’s been a healthy process,” he said.
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Morning Star Editorial: Budget provides city with balance
There’s never a good time to increase taxes, and that argument certainly holds water during challenging economic times when people have lost their jobs or seen their wages frozen. So Vernon council deserves praise for acknowledging current conditions and limiting the 2010 residential tax increase to 2.02 per cent. It’s comparable to the cost of living, while allowing the city to proceed with services that the public not only requires but demands. Leadership was certainly shown when a decision was made to divert one per cent of that tax increase to what is commonly known as the infrastructure deficit. Like in other communities, Vernon’s roads, sidewalks, bridges and sewer lines are aging and the price tag to replace everything is a staggering $115 million. Unless money is socked away into reserves, there is little chance Vernon can ever afford to catch up. There will be those who believe a 2.02 per cent tax increase is still too high but that means items would have to be slashed from the budget. With the exception of $199,500 for the highly questionable new park downtown, there doesn’t appear to be a lot of fat in this budget. Anyone who was around in the 1990s will remember that zero taxation led to potholes in the street and eventually huge increases were unavoidable. Sharpening pencils is necessary with public money, but at some point, the process must come to an end and the politicians must stand by their actions. Based on the 2010 budget, Vernon council members have found a proper balance between the needs of individual taxpayers and the collective interest of the community.
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