Vernon council considers zero per cent tax increase

By Richard Rolke - Vernon Morning Star Published: December 12, 2011 11:00 AM

Vernon’s new council is trying to keep a tight rein on taxes.  On Monday, council established a preliminary range of zero to 2.3 per cent for a possible tax hike as part of the 2012 budget. “It’s just a range to give them (city staff) some direction,” said Coun. Bob Spiers, adding that a more permanent figure will be established during the budget process.  “It doesn’t show the public that the budget will be zero. The last few councils have said zero and we haven’t wound up with that.”  The ongoing financial downturn and its impact on residents influenced council’s decision. “In the economic environment we’re in, we need to shoot for zero per cent,” said Coun. Mary-Jo O’Keefe.  Staff told council Monday that a four per cent tax hike would be needed to cover cost of living increases and basic services. Opposition to establishing a range  came from Councillors Juliette Cunningham and Patrick Nicol. “Without seeing the actual budget, it seems premature,” said Nicol of establishing numbers.
Look for more details in Wednesday’s Morning Star.
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Don Quixote Note: The range of 0% to 2.3% (CPI 2011 approximation) was given to staff so that when the Budget Discussions come back in early January that staff would also bring back the ways in which a 2.3% budget increase could be found as well as how to accomplish a 0% budget. The staff budget which will be give to Council on Thursday )and will be online shortly thereafter will come in at a 4% to 6% increase and the staff will be tasked with presenting options (service level cuts, revenue increases  use of the 2011 surplus etc, ) that will bring us down to either a 0% increase or a CPI type increase of 2.3%.)
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Written by Peter McIntyre  107.5 KISSFM Tuesday, 13 December 2011 03:38

The possibility of a core service review won't be part of Vernon's initial budget discussions next month.  Mayor Rob Sawatzky ---who campaigned on a promise for a spending review--says that will happen later.  "After we have dealt with budget, and after we have dealt with hiring a new chief administrative officer, then some time in the new year we will proceed with (discussion) on a core review." The budget talk will heat up next month with two all-day sessions on January 12th and 13th.  Council has asked staff to make recommendations based on spending hikes of zero, to the cost of living, about 2.3 percent. Councillor Bob Spiers says he will be pushing for a tax decrease, saying the city's current spending levels are not sustainable.  "I would like to see us get it down as much as possible...An increase on a high base isn't sustainable" Spiers says details on the new budget will be posted on the city's website soon.  Sawatzky tells KISS FM, the 0 to 2.3 percent figures are just general guidelines for staff. "We need to see lots of details before we commit to anything. We have to see facts, and we have to deal with what's brought to us because there are legal commitments and obligations that carry on for funding, so it should be a difficult and interesting time."