Council ready to pass its budget

 Friday, 14 December 2012 02:00 SCOTT TRUDEAU Penticton Herald:
It appears as though Penticton City Council will be able to achieve its goal of a zero per cent tax increase in 2013.  The proposed budget passed its first, second and third readings following the conclusion of budget deliberations on Thursday morning by a 5-2 margin. The budget is expected to be reviewed and finalized during the next city council meeting on Monday night.   The city is showing a $1.26 million deficit for the upcoming year.  Treasurer Dough Leahy recommended the city could use its accumulated surplus and its interest stabilization reserve which could be used to make up the budget shortfall if it wants to keep tax rates at zero per cent.   There is presently a total of $3.9 million in accumulated surplus.  Leahy recommended withdrawing $1 million from the surplus and funding the remainder by withdrawing about $250,000 from the interest stabilization reserve which is sitting at just over $1 million.   "I feel comfortable that we can deal with this deficit as it is right now," said Leahy.  Coun. Garry Litke noted it's comforting to have the surplus.  "In view of the fact that our goal has been to keep taxation at zero - and it appears that we've achieved that goal - I have no problem using that accumulated surplus in order to balance our budget."(more)