Lean 2021 budget approved by Vernon Council

Update:

Vernon City council has adopted its 2021 budget after cutting the original 4.47 per cent increase in half.

Councillor Akbal Mund made two motions at the resumption of budget discussions Tuesday, and found full support for both, lowering the tax increase to 2.13 per cent.

A $75,000 dollar increase in the O’Keefe Historic Ranch grant will be taken from the $98,110 uncommitted operating reserve from 2020, lowering the rate by 0.17 per cent.

A new planning position at $110,000 will now come from the development reserve fund, and not taxation knocking off 0.25 per cent.

Fire spreads to house

Vernon home "significantly damaged" by grass fire

Apr 02, 2026

Youth Health Services

Youth immunization, sexual health clinic opening in Vernon

Apr 02, 2026

Displaced For A Week

Some residents still displaced from fatal apartment fire

Apr 01, 2026

The 2.13 tax hike amounts to $33 for the average Vernon homeowner ($463,000 assessed value).

The final budget is $44,170,015 an increase of $722,426.

“This budget is a testament to the hard work of our staff, we were dealing with an emergency operations centre running around the clock, and unprecedented development happening at the same time,” Mayor Victor Cumming said. “We are in better shape than most municipalities.”

Update:

Vernon council has shaved a few more points off the 2021 budget. By the end of deliberations Monday proposed total taxation had been reduced to 2.55 per cent.

It amounts to $30.00 increase on the average assessed home in Vernon which was put at $463,000 during this years assessment at 4 per cent increase over 2019.

This includes a 1.79 per cent operating budget increase and a 0.76 per cent adjustment for service level adjustments, some that had been funded by one time monies in 2020.

Public input resumes Tuesday at 11:30 at Vernon City Hall (with COVID-19 protocols), followed by final adoption.

Original:

Massive binders in hand and department heads on standby, Vernon council is wading into the city’s finances for 2021, trying to whittle away at a proposed 4.47 per cent tax increase.

“It’s not an easy task. This council and others are looking for the best value for the money,” Will Pearce, CAO, said in opening the deliberations. “The COVID environment has made it particularly challenging and will continue to be through 2021.”

There were 10 service level increases including eight from council and two from staff amounting to 0.78 per cent.

Increased taxation due to growth and higher assessments or what is called “non-market change” is anticipated to provide an additional $400,000 in revenue in 2021.

The first item to fall was the 1.9 per cent infrastructure levy knocking the increase back to 2.57 per cent.

The province has earmarked nearly $5 million in COVID-19 relief to the municipality but it can only be spent on items where expenses were up and revenue down directly related to the pandemic.

“All departments are tracking COVID-related items and we will report that once we know the full extent,” Debra Law, Director Financial Services, said.

Two areas significantly impacted by the pandemic are transit with a shortfall of $447,000, and staff were hoping to hear news today about provincial relief. The recreation services budget is also undergoing major amendments with revenue down by $362,000, of which the city pays 68 per cent.

Two major budgets were dealt with first accounting for over $16 million.

The Vernon RCMP budget was increased by 2.67 per cent or $258,595 to $9,925,741. Vernon pays 90 per cent of the RCMP contract, with the federal government paying 10 per cent.

“Some of the expenses we are working with are new vehicle fit-outs, body and dash cameras and the possible impact of the National Police Federation (NPF) negotiations,” Supt. Shawna Behar said. “The NPF covers 55 members of the local force ranging from constables through staff sergeants.”

The new police union is calling on RCMP wages to be brought in line with municipal police forces, which could see a dramatic increase in salary cost.

“We hope to get a dash cam pilot project here in April which could reduce the cost of both that technology and body cameras,” Behar said.

The Vernon Fire Rescue Services (VFRS) budget increased 4.2 per cent or $275,603 to $6,837,514.

“It’s been challenging with the longest opening of the emergency management centre in the history of the program,” Chief David Lind, VFRS said.

“Wages and benefits account for most of the increase, with $48,000 in additional contractor, supply and materials costs,” Lind added. “We hired two more personnel in 2020 and reduced our cost of overtime. Two more full time hirings will be delayed until 2022.”

Reserve funds were used to upgrade radio systems and hazardous material handling equipment.

Like the RCMP, fire services could be impacted by union negotiations, as the contract between the city and the International Association of Fire Fighters has expired.

Operation services account for a 0.92 per cent increase or $397,867 to $10,206,672. Operations Services is responsible for public works, utilities, parks services and fleet services.

The department handles everything from purchasing and servicing city vehicles, to selling aviation fuel and keeping the downtown Vernon washrooms clean, a $70,000 dollar ticket for 2021.

Community Infrastructure and Development Services budget nudged up just slightly 0.16 per cent to $2,763,328.

“Building activity rebounded from the spring, with $87.3 million in permits to the end of October, 328 in all with 278 for housing,” Kim Flick, Director of Community Development said.

Building and planning departments have been stretched to keep up with demand, with three staff vacancies in Development Services and two in Current Planning.

The Human Resources budget at $1,713,708 remained nearly constant. Council instructed administration to prepare a list of potential vacancies in 2021.

Administration and council expenses dropped slightly to $890,695 with staff time being reallocated and travel expenses anticipated to be lower in 2021.

More to follow as talks continue.