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Trimming the tax burden

City taps brakes on infrastructure levy

Nov 30, 2020 | 1:13 PM

Vernon council has voted unanimously to pause the city’s 1.9 per cent infrastructure levy for one year as residents grapple with COVID-19.

The levy was brought in in 2012 to help the city catch up on failing infrastructure. The impact to the 2021 capital works budget would be about $820,000.

Coun. Scott Anderson had proposed taking the funds from the Fortis Legacy Reserve Fund, which is currently at nearly $13 million.

“I’m apprehensive to take it out of the legacy fund; we won’t get it back. There are some significant projects coming up,” Coun. Kari Gares said. “We are kicking the can down the road two or three years when there could be a big tax increase.”

“This is a tough, tough year. I think staff could find the $820,000,” Coun. Brian Quiring said. “This is the biggest financial hurdle we have ever had and this program has done very well.”

A motion by Quiring to pause the 1.9 per cent levy for one year and extend the program into 2023 to make up the lost funding was approved. Staff will bring back an amended capital works budget as fiscal deliberations continue on Tuesday.

The removal of the levy drops a proposed 4.47 per cent tax increase to 2.57 per cent.

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