The MD of Bonnyville has approved its 2016 budget at $111.9 million, close to $29 million more than predicted in their December interim budget.
A number of MD projects are continuing into 2016, contributing to the jump.
Infrastructure developments such as the public works safety building, which was expected to be costly in 2015, will actually come out of the 2016 budget. The building was originally estimated at a cost of $2.8 million but fell to $2.1 million.
“Every year there are certain projects that carry over that don't get done,” explained Chief Administrative Officer Chris Cambridge. “Anything that isn't carried over will go back in and go onto the next budget.”
The MD will also collect an extra $1 million due to the raise in the education tax requisition. That contributes $13.5 million to the budget. While the MD cannot spend tax requisition dollars, they do appear in their budgets.
While they suspect the lodge requisition to increase, Cambridge noted he doesn't see it taking effect this year.
“Next year the lodge will likely go up considerably because there are quite a few new lodge products going ahead in the MD in the next year. This year actually the lodge is just down slightly.”
The final factor contributing to the high budget is that the MD will dip into its reserves to fund road projects. Almost 50 per cent of the budget will be put towards road improvements and future developments.
Of the $53.8 million allocated for roads in the municipality, $26.2 million will be put towards road improvement and construction for gravel, oiled and paved roads. An additional $14.6 million will be spent to maintain them.
The MD set the remaining $13 million aside for road work in 2017.
Moving into year three of its development project, $3.5 million was allotted to Ardmore street improvements. The hamlet is undergoing a five-year program to replace its underground water systems.
Up to $2.5 million was assigned for the next phase of Baywood Road. The project could start as late as 2018. It is projected to cost three times the amount set aside now.
“Roads are the priority for the majority of our residents, and council is continuing to attack the MD's road deficit,” said Reeve Ed Rondeau.
Budget revenues will be funded by $7.71 million in provincial grants, $12.48 million from MD general revenues, $82.95 million in taxes, and $8.67 million in transfers from surplus.
An excess of $2 million is set aside for assessment appeals and other decreases due to a large linear assessment variance. This is $2 million more than the $100,000 allowance of the 2015 budget.
“The uncertainty in the oil patch has had us create a buffer, should the funds not be available,” said Cambridge, explaining oil companies in the area may appeal their previous assessments in the economic downturn.
“It's an estimate of what might happen. If the oil fields pick up tomorrow, then it will be more money than I have estimated. If it continues to decline, and certain plants decide to dispose of or not connect certain pipelines, then my tax base will drop.”
Other budget priorities remained in line with dollar values previously discussed in their interim budget.
Landfill operations and agricultural services will see around of $2 million each. Community halls will receive $100,000 more than the proposed $600,000 last year towards operating costs.
The Goodridge Rescue Truck and the Cold Lake Tanker will receive $600,000. The La Corey Fire Hall/Grader Shop was granted $300,000.
