The Town of Lake Cowichan has voted to pass its latest financial plan for the next five years but only after some split views at the council table last Tuesday.
At a special meeting held at the town hall, Coun. Frank Hornbrook voted against passing the financial plan, with Mayor Ross Forrest, Coun. Bob Day and Coun. Jayne Ingram voting to do so.
Coun. Tim McGonigle was absent from the meeting.
“Before the tax rates can be established, we must adopt the financial plan,” said chief administrative officer Joe Fernandez to kick off the meeting.
Forrest confirmed that nothing had changed since second and third reading of the plan, but Hornbrook still wasn’t convinced by some aspects of it.
“I’ll be voting against the financial plan because the parcel tax is going up in 2016, 2017 and 2018,” said Hornbrook at the meeting. “I also do not feel council had enough involvement with the purchase of the new pick-up truck for the fire department. It was brought to council and then we were asked for a quick vote before the price went up.”
Ingram asked the table what the parcel tax increase was for with finance director Ronnie Gill confirming it was “to cover the debt.”
“The parcel tax will go from $100 to $175, but that can be changed. 2015, 2016, 2017 and 2018 are just estimates. For 16, 17 and 18 that doesn’t change in the sewer, it’s just the water services,” said Gill at the meeting.
“It’s just because we have to have a five-year financial plan in place,” said Forrest stating that those numbers could come down when the time comes around.
The town had to take a significant amount of money out of its savings this year in order to balance the budget, with major capital projects such as the new Renfrew Town Square being costly.
“I understand Councillor Hornbrook’s concerns,” said Day. “But it would be irresponsible of us to undertake a project and not have a method to re-pay it. We have to have a plan to pay that off.”
Forrest believes there “could be a big bill coming down the pipeline for water.”
“We have to have money set aside and we don’t vote on next year’s budget today. The parcel tax will reduce what we have to borrow,” said tha mayor.
Ingram has her fears about the parcel tax increase.
“I know that $175 and then another $100 for sewer is going to be a burden for some people. It’s hard for the seniors,” she said.
A copy of the financial plan can be found on the town’s website.
