City Deficit

Vernon city council is digging deep into RCMP reserve to cover last year's operating deficit. Councillor Bob Spiers says it was either transfer 851-thousand dollars out of the reserves to cover the red or hike taxes even more which would be "pretty intolerable.''

The city is not able to carry a deficit. Spiers says there will still be 650-thousand left in the reserve.

Mayor Wayne Lippert says many municipalities and regional districts are in the same situation.

A big decline in the financial markets, and less casino and tourism revenue are some of the reasons for the deficit which stands at over one-million dollars, according to councillors and city staff.

Kate Bouey - Vernon