The District of Westside is proposing a conservative 2008 budget.

Following budget deliberations Thursday morning, Westside Council approved a tentative budget with a tax increase of slightly less than 5.4%.

A little less than 3% of that increase ($450,000) will go straight into reserves to help lessen the burden on taxpayers when provincial start-up contributions end in 2013.

The balance of the increase, 2.4%, will pay for renovations to the Main Westbank Fire Hall to accommodate the new ladder truck and three additional firefighters who will be hired in July.

The increase, if approved May 13, would mean a tax increase of approximately $51 for the owner of a typical $400,000 home.

Much of Thursday's discussion centered around how much of a tax increase should be levied each year to go directly into reserves over the next five taxation years.

Westside Chief Financial Officer, Jim Zaffino, laid out a number of options, ranging from yearly tax increases of 5.25% to 20% yearly to go directly into reserves through 2012.

The original baseline budget allowed for slightly more than $17 million to go into reserves over the next five years.

The funds were derived from provincial restructuring funds ($7.125 million), traffic fine revenues $1.2 million), provincial rural taxation transfers $1.2 million), federal gas tax funding $4.3 million), Regional District reserve transfers ($1.4 million) and other transfers to reserves ($1.9 million).

Zaffino favoured a formula where residents would be taxed 12% annually over the next five years, which would have added another $11 million in reserves.

According to Zaffino, this would allow Westside to use those reserves for a five year period starting in 2013 to reduce the policing impact by almost $2.8 million and still have close to $13 million in reserve for other projects.

"I was leaning towards option three (12% tax increase), because it would lessen the impact for the RCMP," says Zaffino.

"The reason I was using the higher percentages was so that some of that money would be put away for future expenditures to soften the impact for the RCMP amount."

Councillor, Duane Ophus, moved that Council approve a tax increase of just $450,000 for each of the next five years, slightly less than 3%, which would increase reserves to nearly $20 million.

Ophus says he believes $20 million in reserve is more than adequate for a community the size of Westside.

"You have to remember that we were forced to take a lot of these expense figures, because basically we inherited the budget from the Regional District," says Ophus.

"We will be looking in detail at how much it costs to run the municipality, and I think there will be some significant savings starting in 2009."

Ophus says 560 new homes have been added to the tax rolls in 2008 and all of the new construction in the municipality will add more revenues over the next several years.

"The revenues will be higher, the expenses will be lower. You have to be realistic about how much you can expect today's taxpayer to pay for expenses that won't be incurred until 2013? If we can save all of the provincial contribution funding, which we're basically doing for five year, how much more money do we need?"

Mayor, Rosalind Neis, who favoured a 9% tax increase in each of the next five years, says Council approved what she called a re-election budget.

"To be honest, absolutely. I believe it's better to have something in your back pocket than to suddenly say, oh, we didn't anticipate this, we're stuck now what are we going to do?," says Neis.

She adds what Council has proposed is a safe budget.

Neis says she believes if taxpayers know where the money is going, they will accept a tax increase.

"I'm in that middle-of-the-road tax bracket and I don't want my taxes to go up either, but at the same time, I think most taxpayers won't begrudge an increase if they know what it is going towards. What services exactly are their taxes being applied to. If they understand that it's going in the bank for safe keeping, that we can apply it to increased sidewalks and more protective services, they might say I'm okay with that."

Ophus says in no way is this a re-election budget, saying he has no problem with the decision he has made and expects to be held accountable for them.

He adds he will continue to analyze the number between now and May 13, when the final budget must be adopted.

"I will take into consideration Mr. Zaffino's suggestions and recommendations and if to make some adjustments we will make them. I very strongly believe in having a conservatively managed and conservatively financed municipality and that's what we're going to have."

Meantime, Council also approved $26,500 worth of grants-in-aid. These include:

• Westside Citizens on Patrol - $4,000
  
• Gellatly Bay Trails and Parks Society - $2,000
  
• Westbank Museum Society - $10,000
  
• Canadian Red Cross - $5,000
  
• Westside Celebration Society - $5,000
  
• Arts Westside - $500 (subject to non-profit society verification).

Council also deferred a $20,000 request from the Westside Community Food Bank Society until it hears a presentation from a delegation of the food bank.

Changes can still be made to the budget before it is brought forward for first three readings May 6.

It must be adopted May 13.