Taxpayers are being asked to waive taxes again for a seniors’ group facing financial uncertainty.
Vernon council will consider a request Monday from the Schubert Centre to exempt water, sewage and property taxes annually.
“The Schubert Centre provides a really valuable service to the community,” said Mayor Rob Sawatzky.
“It will be an interesting council discussion and we will have to put the request in context with everything else we do (financially).”
In 2009, the city provided $15,000 annually for three years because of a $162,000 shortfall the Schubert Centre was facing from senior government policies and upgrades to the 30th Avenue facility.
The non-profit society currently has a debt load in excess of $100,000.
“We realize these are difficult times but we feel strongly, however, that the Schubert Centre must continue to play its critical role in the delivery of important programs for all seniors that live in our community,” said John Toporchak, Schubert Centre president, in a letter.
It’s not known what the value of exempting water, sewage and property taxes would be this year.
The society’s financial situation first goes back to 2005 when provincial Bingo revenue was discontinued. That was followed by a donation not materializing for kitchen renovation and a bank loan being required.
A Revenue Canada audit led to $100,000 in GST being paid in 2006.
“With a declining economy, many of the organizations that the centre does business with on a regular basis have had their budgets cut, which, in turn, have impacted the revenues that sustain us,” said Toporchak.
Besides facility rentals, revenue is generated through program and membership fees, the restaurant and catering.
A number of actions have been taken to increase cash flow, including increasing membership fees, fundraising, seeking grants and deferring capital projects except for emergencies.
Toporchak says the city’s decision to waive property taxes and utility fees in 2009 was beneficial.
“This support of the Schubert Centre has gone a long way towards assisting us to be able to continue with our current programs and services to Vernon’s seniors,” he said.
