Wednesday, January 16, 2013

4.8% Tax Hike Discussed By Council

Written by Peter McIntyre  107.5 KISSFM Wednesday, 16 January 2013 15:40
  Several members of Vernon council support tax increases to upgrade the city's aging infrastructure. At the first of three special budget meetings at City Hall today, city staff recommended council raise taxes three percent, to build up funds for road and sewer projects. Another option is for a 1.9% hike for infrastructure. When you add other proposed spending increases, this year's tax hike could be 4.8 percent, which translates to an estimated $55 for the average homeowner. Councillor Brian Quiring doesn't think that's excessive. "We've inherited a tough situation here with the lack ofconsideration for our infrastructure, and we need to stop the bleeding. At 55 dollars a year, I think it's money well spent," Quiring told Kiss FM. Mayor Rob Sawatzky says he's also leaning toward a 3% infrastructure increase. "I think we probably need to follow the recommendation of our engineering staff. We could go with the lower percentage, but that leaves us at risk in other areas. We could have catastrophic events. W can have fires that we have not planned for, like the fire last summer at the Rise. That could have been a financial disaster for the city. We can always reduce taxes in the future." Councillor Bob Spiers --who has pushed for tax decreases in past years -- says he's keeping an open mind this time. "It's a matter of whether we are going to start out with either a 1.9% or 3% tax increase each and every year for the next ten years. It's a decision I don't think should be even contemplated until we end this budget discussion," Spiers told Kiss FM. Spiers is upset council isn't putting off what he calls "cosmetic projects" like the 2 million dollar 30th Avenue revitalization, and the Polson Greenway. "The ones that don't need to be done at this time, or even within the next ten years." Council members and city staff will hold an all day budget meeting Thursday, and from 9 to 12 on Friday, all open to the public. There was no public input on the first day.
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 Don Quixote Note:
$871,854 in  net CITY OF VERNON CHANGE REQUESTS(p.344-346).

If all change requests that are required to be funded from taxation and change credits totaling approx $250,000 are accepted then the $871,854 will add another 3.54% to the tax revenue increase.

If the $250,000 in service reductions are not accepted then you can add another 1% to the tax increase.

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