Saturday, February 12, 2011

Vernon eyes slim tax hike with budget cuts

Richard Rolke - Vernon Morning Star Published: February 12, 2011 12:00 PM
Spending has been slashed but Vernonites could still be looking at a slight tax increase.  On Monday, council will consider proposed spending reductions in the 2011 financial plan while restoring transfers to reserves. If approved, these changes would lead to a 0.21 per cent tax hike.  “They’ve done what council asked them to do,” said Mayor Wayne Lippert of staff, which was directed Jan. 18 to find one per cent, or $246,416, in savings.  The proposed savings total $717,380, including funding fire dispatch from reserves, reducing maintenance and bylaw coverage, delaying hiring and eliminating a vacant part-time position.  “We knew going into this that reductions could impact some services.”  In the case of bylaw enforcement, Lippert says officers’ activities could be reduced during the off-season but put back to full-strength during the summer.  The staff proposal calls for $846,949 to be placed into reserves, including vehicles and equipment, information technology and fire vehicles. “We need to put some money into reserves so we can plan for future projects that need to be done,” said Lippert.  Coun. Bob Spiers believes more could be done to reduce expenditures.  “It’s heading more towards where it should be,” he said of the projected tax increase. “It’s still to be determined if all reserves have to be topped up and it’s still early in the budget process.” Some residents have suggested that city hall has hired too many new staff in recent years, and Spiers insists there is a need for a thorough review of services to determine if any efficiencies are possible.  “We have an unsustainable pattern,” he said of spending. Coun. Patrick Nicol says there is a need to keep the budget as tight as possible given the financial circumstances many residents and businesses face.  “I was hoping we’d go below zero per cent (tax increase),” he said. “All in all it’s been a good process and hopefully there are a few more savings to be had.”

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