Vernon council homework came in the form of a large white binder Monday, Nov. 14, at the first regular meeting of the new term.
City director of financial services Debra Law presented the proposed five-year financial plan for 2023-27.
Inside the binder, the pages show council three potential options for the plan with possible taxation increases of 5.22, 4.89 and 5.1 per cent.
“The 2o23 proposed operating increase of $815,819 is below the three per cent authorized by council at the June 9, 2022 meeting, and includes approved service level increases of $161,171,” said Law.
Including the infrastructure levy increase of 1.9 per cent totalling $924,498, the estimated 2023 non-market change of $750,000, and the 2023 proposed service level increases totalling $1,549,857, the total 2023 proposed taxation increase is $2,540,174 or 5.22 per cent (Option 1).
Previously approved 2023 service level increases that affect taxation include the operational impact of the new Lakeview Pool, the full year operational impact for Civic Memorial Park, the addition of park field lining and net operating costs for the two new childcare facilities at the Vernon Recreation Centre and in Okanagan Landing.
Proposed 2023 service level increases affecting taxation include items like Marshall Field washroom extension of operation; additional position for talent acquisition and retention; additional deputy fire chief; additional bylaw compliance officer; two additional RCMP members; service level increases due to development; library Sunday opening grant; Firefighter Apparatus Reserve contribution; snow plowing enhancements - priority lanes, cul-de-sacs, and sidewalks; snow removal enhancements to bus stops.
Operations has requested a service level increase to remove snow from bus stops at an estimated cost of $160,000 annually. As Law said it’s a significant service increase, staff recommends it be deferred for consideration in 2024.
“Not approving this service level change would reduce the total taxation increase to 4.89 per cent (Option 2),” said Law.
Option 3 involves historic O’Keefe Ranch, which receives an additional $100,000 of grant funding in 2023 for a total contribution of $150,000, of which $50,000 is already tax funded. The additional $100K would come from the city’s Casino Reserve.
The ranch grant of a tax-funded $50,000 has been issued since 2019, and additional grants have been provided each year to increase the grant by $50,000 in 2019 and 2020, and $75,000 in 2021 and 2022. For four years prior, the O’Keefe Ranch grant was tax funded an average of $150,000 annually.
O’Keefe Ranch has indicated to the city that the amount will be needed on an ongoing basis.
Staff recommends council considers tax-funding the additional $100,000 for 2023 which would result in a total taxation increase of 5.1 per cent, Option 3.
Council will meet Dec. 5 and 6 to begin budget deliberations. The public will have a chance to give input during both days.
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roger@vernonmorningstar.com
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