Some residents and business owners within the MD of Bonnyville will be happy to see a bit of a dip in their 2018 taxes, although it won’t be for the same reason.
MD Reeve Greg Sawchuk said the municipality’s budget is “taking the focus away from strictly roads and spreading things around a little bit more. We’re still looking at the level of service, but on many different fronts.”
On April 25, the MD of Bonnyville passed a balanced 2018 budget, keeping their residential mill rates the same as last year, while giving industrial and small business owners a bit of a break.
“We implemented a new small business class, with a mill rate of 13.5, and we lowered the non-residential mill rate to 15, which brings us closer to our 5:1 legislative ratio between residential and non-residential,” explained director of finance and administration for the MD Michael Trabysh.
However, residents within the municipality may also notice a difference in their taxes.
Although the residential mill rate is staying the same, property assessments in the MD have gone down, resulting in lower taxes.
“I’m happy the residential taxes are finally going to start dropping again. Assessments are dropping, making people unhappy about that, but they should be happy their tax will drop, and the school taxes dropped a little bit,” Coun. Dana Swigart expressed, adding last year was a different story.
Swigart said in 2017, school taxes increased, causing residential taxes to also rise. Residents thought it was the MD responsible for the increase in their 2017 taxes, but that wasn’t the case.
This year, the average household could see a drop of about 15 per cent in their 2018 taxes as a result. But that isn’t the only area residents will see a dip.
“They will see a decrease both on the municipal tax and the education tax,” Trabysh explained, adding, these tax breaks are providing “relief” where it’s needed.
Budget highlights
The MD has approved $136.9-million in expenditures, this includes both the capital and operating budgets.
This funding includes $4-million for recreation, $3.6-million for trail networks, $2.5-million towards fire halls, $2-million for the municipality’s Legacy Fund, $1-million for the Kinosoo chair lift project, $1-million in bridge repairs, and another $1-million in utilities costs.
The MD has also accounted $12-million for the Wolf Lake resource road project, and $13-million for the La Corey North resource road. Both have been deemed multi-year projects.
Trabysh described the 2018 budget as “building services while providing tax relief.”
“That really seemed to be the trend of the budget,” he said.
The MD had a few key principals in mind when considering their spending in 2018. They wanted to ensure they “kept the lights on” while continuing to offer the same level of services MD residents expect.
A break down of the 2018 property tax
Residential properties within the MD will continue to see a mill rate of about 2.76 for the year, bringing around $5.2-million into the municipality, a slight dip from 2017’s $5.7-million.
With a mill rate of 5, tax revenue from farmland has remained consistent at $317,000.
Non-residential property taxes have decreased, after the MD approved a drop in the mill rate. In 2017, non-residential made up about $58-million in tax levies, when the mill rate was 15.5. This year, with a mill rate of 15, non-residential properties will bring about $57.6-million into the municipality.
“Lowering the non-residential mill rate is a significant step, and we feel it’s important in this economic climate we recognize our industry partners and what they bring to our communities,” said Sawchuk.
For small business properties, their mill rate will be set at 13.5, after the creation of the new tax class. In total, the MD will be bringing in about $946,000 from small business taxes.
Overall, municipal taxes have remained fairly similar to 2017, when they were about $64-million, a slight difference of about $121,000 when compared to 2018’s $64.2-million, Trabysh explained.
When it comes to requisitions, education is sitting at about $13.2-million for 2018, another drop the municipality is seeing. In 2017, the education requisition was $14.3-million.
For the senior’s foundation, there was very little change between 2017 and 2018. This year, the requisition will come in at $493,000, an about $1,000 increase from the year prior.
Designated industrial property, which didn’t appear in the municipalities 2017 tax levies, is coming in at $126,000 for 2018.
“The requisition piece, which is about $13.9-million, those are the uncontrollable requisitions, which are flow through expenditures for us that we submit through other levels of government,” detailed Trabysh.
In total, the MD’s property taxes for this year are $78-million, a less than $900 drop from last year.
Where is the money going?
Of the $136.9-million in expenditures for the fiscal year, council has included $79.1-million in transit and utility costs, $14.9-million in administrative fees, $11.8-million in parks, recreation, and culture, $13.9-million in requisitions, $6-million in agriculture and waste, $6-million in fire, $2.5-million in planning, and $2.7-million in public safety.
The largest project on the MD’s radar for 2018 is the overlay of the La Corey North Resource Road, a cost of about $13-million. To fund the project, the municipality has taken out a debenture, paid for with $1.2-million in annual funding from the ID 349 agreement.
The $4.2-million Wolf Lake Road reconstruction is being done in collaboration with Canadian Natural Resources Ltd. (CNRL), and will reconstruct six miles of Wold Lake Road.
Another road set for reconstruction at a cost of $2.8-million is the Imperial Oil Road, with the Ardmore East Underground project, estimated at $4.2-million, also being completed this year.
Although roads will always remain a priority for the MD, they’re shifting their focus and “spreading” their money throughout the municipality.
“We’re looking at recreation folks use, water, healthcare, and public safety, all of those things are part of the approach,” Sawchuk noted.
Extending the MD trail system has also made the list. The Hwy. 28 underpass connecting the Jessie Lake Trail to the Moose Lake Trail is projected to cost $1.3-million. Council has also set $400,000 aside for the paving of existing trail portions.
The MD’s Senior Transportation Grant will continue to be funded at $60,000, with $575,000 available to local halls and societies for capital and operating costs. This year, the MD approved an increase to the Glendon Agricultural Society funding. They will now receive $150,000 annually to cover operational costs, while the Bonnyville Municipal Seed Cleaning Co-op will receive $500,000 for two renovation projects. The Cold Lake and Bonnyville libraries are funded $17 per capita annually.
How is the MD paying for this?
About $64.2-million in property taxes are helping the MD balance their $136.9-million budget.
A surplus of $22.8-million was also included.
For 2018, the MD will see $13.9-million in school taxes and Lakeland Lodge requisitions, funding that will go to the province.
“We collect $8.4-million in grants, this year we’re taking out a $13-million debenture. Industry contributions are at $1.2-million, user fees are $6.9-million, and reserves is $6.5-million,” noted Trabysh.
