Quote:
Originally Posted by Vin
You're the one who's lagging here when it comes to contextual comprehension, or could it be just sheer ignorance or worse, arrogance? You decide.
That's "bankrupt" in my book.
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Let me guess, your book has floppy pages, very short words and very, very big writing?
The City allocates money under a number of budget headings. Generally the expenditure is reasonably predictable, and so is the income, so there's usually sufficient income from taxes or fees to cover the expenditures under each heading, but just in case expenses are unexpectedly high, or income is unexpectedly low, there's a General Stabilization Reserve Fund, with money in to cover that unexpected situation.
It's like you keep your money in five jam jars in a row on top of your fridge. The one for rent/mortgage is generally predictable, and so is the amount you put aside for comics, and sweeties, and going to the cinema. And just in case something needs buying you didn't anticipate, there a pot on the end that you put $2 into every week. That's Vin's Rainy Day Fund.
As a result of covid, some expenses went up unexpectedly, (lots of IT overtime getting staff set up to work from home on secure computers) and revenue dropped in some areas (far fewer development applications for a while, and no income from Community Centres, and far fewer people parking in Easy Park lots for a while). So the City used the General Stabilization Reserve Fund to cover its bills. Also, the City of Vancouver budgets $4m for snow clearance, which is more than enough in a typical year. Guess what? It snowed more than usual in 2020, and in 2022. So the City dips into the Reserve Fund to cover the extra cost.
It's like you spilled coke all over your PlayStation, and the controls got all sticky and stopped working. Well a replacement is $600, but you've only got $560 in your 'Rainy Day' jar, but you're going to buy it anyway and you know you can get enough when you get paid to cover the rent and pay back the extra $40, so you slip an IOU in the Rainy Day Fund jar, (which is now empty). (Generally people in your position buy the controller on their credit card and pay significant interest rates to pay it off, but you don't believe in debt).
Are you bankrupt? There's still money in the other six jars, and nobody is hammering on the door for repayment of anything.
And Vancouver is by no means facing the highest tax increase - which is higher than it would have been because ABC have just realised that 100 extra police will cost an extra 2.7% tax increase, and there's also extra money needed to cover other 'election promises'. In Port Moody they're looking at an 11.3% increase "Ganske said the draft budget includes the reinstatement of several services that were cut during the COVID-19 pandemic to save money." Victoria is contemplating a 9% tax increase. And of course Surrey is looking at 17.5%