Vernon Matters file photo

By Liam Verster

0.96% Cumulative Infrastructure Levy

Slight tax increase to be explored as Vernon adopts new infrastructure management plan

Nov 14, 2024 | 1:57 PM

The City of Vernon has a new plan to outline the future of infrastructure work, which may need some additional taxation.

The new Organizational Asset Management Plan (OAMP) has been adopted and is replacing the 2013 Sustainable Infrastructure Investment Plan.

The OAMP will provide a comprehensive strategy for maintaining infrastructure by assessing current conditions, forecasting future replacement costs, and identifying options to close funding gaps between available financial resources and the amounts needed to keep assets in reliable working condition.

The City of Vernon owns and operates roughly $2.6-billion dollars worth of infrastructure assets, and the majority is rated fair to good, though some are nearing the end of their lifespans and will need to replaced in the future.

To account for these costs, Vernon City Council tasked staff with bringing forward a 10-year, 0.96 per cent cumulative Infrastructure Levy to be considered in the 2026 Financial Plan.

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Staff was also directed to implement key financial and asset management policy recommendations identified in the new plan to ensure the city’s infrastructure remains safe, reliable, and sustainable, while maximizing usable lifespan.

“Providing reliable, long-term services for residents is at the heart of our asset management plan,” Mayor Victor Cumming said.

“Thanks to the strategic decisions of the 2011-2014 Council to implement an annual infrastructure levy—and the commitment of successive Councils to maintain it—funding for general assets replacement is now approximately 75 per cent sustainable, much higher than other communities of the same size in Canada. With the new OAMP and Council direction, we’re closing the remaining 25 per cent gap.”

Vernon’s new OAMP can be seen online here.