Tax may force service withdrawal

By Richard Rolke - Vernon Morning Star Published: March 09, 2012 1:00 AM

Building Inspection New Tax

Solid Waste New Tax

 New taxes could force some communities to abandon a regional service. On Wednesday, Lumby, Cherryville, Armstrong and Spallumcheen opposed $150,000 in taxation to support the building inspection function, which has seen building permit revenue decline during the recession. “If this is something that’s ongoing, we’ll likely have to consider withdrawal,” said Kevin Acton, Lumby director. A possible option for Lumby could be to contract the function out to Coldstream, which does its own building inspection. Spallumcheen has also indicated it could pull out of the regional service, and that is something Cherryville director Eugene Foisy is also considering. “We need some (building inspection) regulations and we don’t want to be the wild west but there needs to be fairness,” said Foisy. All communities, except for Vernon and Coldstream, participate in the function, and up until now, expenditures have been covered by building department fees. But a $250,000 shortfall has surfaced because of decreased development in the region. Regional District of North Okanagan staff recommended using $150,000 in taxation to make up the deficit, with the remainder coming from reserves. But Spallumcheen director Janice Brown suggested that only reserves be used to make up the shortfall as well as higher permit fees. “Maybe we bring the level of service down,” she said. That view was supported by Acton, who said, “How can we keep a business floating at a certain height when consumption is not there.” RDNO administration says staffing levels within the building inspection department has already been reduced. Support for the tax came from BX-Swan Lake director Bob Fleming, who says it will mean $24,705 for his jurisdiction. “It’s about $8 per resident. It doesn’t seem to be that onerous,” he said. “It will bring continuity and balance to the service.” It was also pointed out that building inspection ensures structures are constructed properly and are safe. “I have talked to people and they say it’s the cost of living in our area,” said Jackie Pearase, rural Enderby director. Mike Macnabb, BX-Silver Star director, pointed out that reserve funds have to be replaced. “We can take from reserves but what happens next year? It will be a tax but it will be a big tax,” he said. Because the building inspection tax is part of RDNO’s 2012 budget, the financial plan was opposed by the Armstrong, Spallumcheen, Lumby and Cherryville representatives. “Armstrong is looking at a 26.5 per cent increase (in the tax requisition),” said Armstrong director Shirley Fowler of the impact from new levies for building inspection and solid waste. RDNO’s overall tax requisition is increasing 2.87 per cent, or $550,000, largely a result of the new taxes for solid waste and building inspection. The overall impact will vary from community to community, and from neighbourhood to neighbourhood, depending on the level of services received.
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RDNO TAX Requisition for Vernon $377,730 Increase 4.25%