BONNYVILLE - The MD of Bonnyville has decided to keep their mill rates in line with last year, and have added new ones to their portfolio.
The addition was made after the municipality absorbed ID 349, explained Manager of Administrative Services Calvin Bespalko, adding the mill rates for these properties are set at 70 per cent of the municipal mill rate. This tax rate formula will continue up until and including 2045.
That means, any taxable properties that fall under non-residential other or machinery and equipment within the former ID 349 will see a mill rate of 10.15.
For the average resident and business owner, mill rates will remain the same as last year when residential was set at roughly 2.77, farmland at five, 14.5 for non-residential vacant, non-residential small business class remains at 11.6, non-residential at 14.5, and machinery and equipment also at 14.5.
According to Reeve Greg Sawchuk, the MD of Bonnyville had tasked the province with determining the mill rate for the former ID 349.
"We were looking for some sort of transition in order to get through. We left it open in the multi-party municipal agreement, we didn’t touch the mill rate at all. That was left up to the province and this is what they came back with,” he noted, adding prior to the MD absorbing the land, the mill rate was in fact higher.
“Previously, before the ID came to the MD, it was calculated by an average (mill rate) of Wood Buffalo, Lac La Biche, and ourselves, and it was taking 70 per cent of that, that’s how it was figured,” he said, adding properties within the area are now seeing a bit of savings.
“What I am hearing, really, is there’s a great economic opportunity for these businesses to expand because now they’re getting less of a rate than they did before, plus now they’re going to be sitting at 70 per cent,” exclaimed Coun. Ben Fadeyiw.
The municipality is estimating over $99 million in revenues will be generated from municipal taxes, approximately $26 million will be from ID 349.
When it comes to the total school requisitions, the MD is expecting over $16.7 million. The seniors requisition is about $315,600.
One important thing to note, Bespalko said, is the school requisition has increased.
"The school requisition for residential has gone up 12 per cent. That’s something that’s not in the control of any municipality, the province does the calculation using equalized assessments of every municipality."
He continued, “When it comes to the school municipalities receive a statement as to how much the requisition will be for the public, and if there is any separate school requisition body within your municipality, that portion. We take those actual amounts and calculate a tax rate here."
Bespalko explained how they do something similar for the seniors requisition.
“In the future, there’s a requisition body in ID 349 called Greater North. There’s no requisition this year, that's why there’s no statement for the Greater North Foundation Fund,” noted Bespalko.
This year, the province is picking up the tab for this cost, but the municipality can expect to take it over next year.
