Burnaby First Coalition urges the mayor to explain billion dollar reserve fund
Burnaby – May 22, 2014 – The Burnaby First Coalition (BFC) is asking questions regarding the city’s massive fiscal reserve accounts now worth over $1 billion, and disputes City Hall’s claim that a tax levy increase of 1.97 percent is needed.
Councilor Dan Johnson recently stated that the tax increase is lower than originally projected. He was quoted by the Burnaby Now explaining that; We sat down twice over the last nine months with our staff and identified some various ways we could be a little more efficient in what we did.”
He omitted mentioning that Burnaby has relatively liquid financial assets worth at least $1.033 billion –
with a “B”. Burnaby First believes this “BCA Billion” indicates excessive taxation.
The money is found in several accounts. The largest, known as the "investment portfolio", held $891.9
million at the end of 2013. This account was up $93 million from the $798.8 million reported at the end
of 2012 (2013 Financial Report, Note 2, p. 49). Burnaby is required by Victoria to hold aside money,
known as a statutory reserve, to cover the long-term cost of infrastructure replacement. But the
portfolio now holds funds well in excess of this requirement.
Another fund, the Development Cost Charges & Restricted Funds account, holds money from developers
collected to cover costs related to new construction. It hit $142 million – up $34.54 million since the
end of 2012. (2013 Financial Report, Note 5, p. 49).
"Their claim of being efficient is outrageous spin. Mayor Corrigan and Councilor Johnson need to read
the big numbers in small print in the Annual Financial Report and then try again to explain their tax
increase. Instead they expect us to thank them for not raising our taxes even more," states BFC
activist G. Bruce Friesen.
"Mayor Corrigan and the BCA like to claim that they are fiscally prudent. But they took at least $93
million more than was needed to run Burnaby in 2013 from hard-pressed taxpayers. They plainly don't
see families stretching t pay mortgages or rent. Or seniors on fixed incomes trying to stay here but
forced to sell their homes and move," states Maria Hancott, long-time Burnaby resident.
"Hoarding money like this shows the NDP-BCA has lost touch with its roots in the social justice
movement," added Helen Ward, BFC supporter.
BFC believes it is time to impose a proper limit on reserve fund growth. Let taxpayers keep more of their
hard-earned money. BFC is a newly formed municipal party that unites people across a diverse political
spectrum to oppose the incumbent NDP-BCA in the November civic election.
DATA SOURCES: Burnaby 2013 Annual Financial Report
www.burnaby.ca/Assets/our+city+hall/financial+reports/2013+Financial+Report.pdf
-30-