BONNYVILLE – MD of Bonnyville council has approved the 2024 Operating Budget and Capital Plan, and residents can expect to see a 2.2 per cent increase in the municipal portion of their tax bill next year.
The increase in taxes is projected to equal an average of about $31.70 on a residential tax bill for 2024. The tax rate bylaw will come to council for consideration in the spring of 2024, after the MD has received the annual requisitions for school taxes, Lakeland Lodge and Housing, and the Greater North Foundation lodging.
The 2024 operating budget sits at $56.8 million in expenses and just over $16.3 million in expenses for the capital budget. Major expenditures include infrastructure ($18.9 million), corporate services ($6.3 million), fiscal services ($5.5 million) and Kinosoo Ridge ($5.4 million). The construction of a fire hall also been approved for Cherry Grove.
Budget deliberations took place on Nov. 1, 2 and 3 and wrapped on Nov. 21. At that time, council directed administration to make changes, which were included in the budgets presented last week, according to administration.
At the Dec. 12 council meeting, one of the main concerns expressed was the allocation of funds to reserves.
Coun. Dana Swigart asked what the total amount being transferred to reserves was, and why that amount was chosen. It was noted that $3 million was being transferred to the bridge reserve based on estimates that $90 million would be needed over the next 10 years. Additionally, there is over $800,000 going to building reserves, and most other departments also set various amounts aside into reserves.
“Reserves are to purchase things in the future,” said CAO Al Hoggan, adding discussions around reserves took place during the budget deliberations.
“It’s nice to throw money in reserves because we need it, and we’re making interest,” said Coun. Darcy Skarsen. But he also noted it was tough to increase taxes knowing there was interest being made on reserve funds.
Trail funds
During discussions, Coun. Josh Crick requested adjusting the 2024 Operating Budget to add an additional $75,000 for the engineering for the Emerald Estates Trail.
“Then when we have the money, it’ll be a project that’s ready to go,” said Crick.
Swigart expressed concern around the request. He questioned the amount required to engineer the project and why it could not be done in-house.
The reason engineering must be done is because the trail will cross Barreyre Lake and due to the size of the culvert that will be required, heard council.
Coun. Ben Fadeyiw said he has no problem with work being done on the trail, as long as that work ends in the MD of Bonnyville. He does not believe the MD should be working on trails in the Town of Bonnyville. Barreyre Lake is located just east of the Town of Bonnyville.
Reeve Barry Kalinski noted that it was an “unfair time” to bring the request up, just as council is making the biggest motion of the year, restating that there were four days set aside to discuss the budget previously.
A potential Fire Tax levy was also discussed during the meeting. Administration said it would like to reach out and get an official legal opinion on the matter.
More talk
“It just seems that we don’t have all our ducks in a row here, to me... I’m not speaking on behalf council here,” said Kalinski, as discussions continued.
Some councillors also asked if the budget should be passed as an “interim budget,” but Hoggan said he felt it would send a confusing message to residents, giving the illusion that work had not been done to create a 2024 budget, when in fact council has spent a lot of time creating a budget.
Administration assured councillors they have the authority to amend the budget at any time they see fit, “that is your authority,” said the CAO.
Hoggan also responded to Kalinski’s earlier comment, stating, “We actually have our ducks in a row... You’re presented with a pretty good budget today.”
Administration noted that there will likely be other things that come up that can change the budget, such as the amount of surplus that is determined after the audited financial statements are done for 2023.
“We’ve got some fairly significant capital projects on the books that need to get started literally on the fourth of January when we get back to the office. The fire hall in Cherry Grove, for example, that’s on a tight timeline,” said Hoggan.
Picking a location for the new fire hall, getting engineering done, and putting out tenders will have to be done quickly, or the project won’t be done in 2024 or early 2025, heard council. This is the same for several road projects.
“I just hear a lot of hesitation around the table, that’s why I made the comment,” said the reeve.
Skarsen said he felt council was in agreement about where the budget ended up. He noted the creation of a potential fire levy could be looked at months down the road.
Coun. Mike Krywiak asked if Crick would withdraw his motion to add the trail engineering to the budget and bring the topic back to the table in the spring, “when we know there’s money in the budget.”
Crick noted he would be happy to see engineering done on the trail, while Kalinski noted that there were several items that councillors did not see added to the budget, but they are not asking to have those requests added to the motion at this time.
Ultimately, Crick said he would withdraw his motion to add the funds for trail engineering.
Speaking again of the tax increase as discussions wrapped up, the reeve said he felt an increase was warranted.
“You have to raise some taxes, you can’t go at zero forever,” said Kalinski.
Skarsen also offered some closing remarks, saying, “I don’t agree with everything in this budget, but I think it’s a good one.”
A motion was made by Fadeyiw to approve the original 2024 operating budget and the 2024 capital plan, as presented. The motion was carried. Coun. Don Slipchuk was not in attendance at the meeting.
