Tuesday, January 29, 2013

Vernon city budget climbs again

By Richard Rolke - Vernon Morning Star Published: January 29, 2013 7:00 AM
Vernon’s financial plan is in a state of flux. Just a couple of weeks after approving a 4.2 per cent tax increase, city council gave the green light to a 4.7 per cent hike Monday to reflect some new items. “We were clarifying two issues because we didn’t have all of the information,” said Mayor Rob Sawatzky. Adjustments have been made to reflect actuals for the cost of living and an annual fee paid by Fortis for gas lines in the community. The budget will also see $40,000 for firefighter training remain. A 4.7 per cent increase translates into an additional $53 in taxes for the average home. Of the total, 1.9 per cent is designated for future infrastructure. With the budget reopened Monday, Coun. Bob Spiers is hoping other changes can be made before the final document is approved. “Other items were over-budgeted for,” said Spiers, adding that the core services review could identify further savings. “I always want to see something lower.” Sawatzky isn’t sure if the budget can be trimmed further. “We will see if Councillor Spiers brings forward ideas that are sustainable reductions,” said Sawatzky.
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Don Quixote Note: The Fortis 'annual fee' is the franchise fee that is on all our Utility bills for the Vernon Area at a rate of 3.09%. You pay it to Fortis who in turn puts it their coffers and the annual total  plus GST is forwarded onto the City of Vernon in November of the following year.
See a Hidden Tax in your Gas Bill (2006)

2 comments:

Kalwest said...

If Fortis collects the 3.09% monthly then why does the City of Vernon have to wait until the year end to receive the funds?

They would collect interest on this charge, why shouldn't the City received the interest on same?

Don Quixote said...

Terms of the agreement have Gave Terasen (Now Fortis) the right to play the float for an additional 11 months. Be glad if you have a Fortis account in Areas B or C where there is no Franchise fee charged..Even the Feds rip us off as they charge the GST on top of this Franchise fee. (A tax on a tax)