Local residents will be subject to a two per cent tax increase in 2016, as the Town of Bonnyville looks to help offset the harsh realities of a struggling economy.
Council agreed to the slight increase at their Nov. 24 regular meeting, which saw them go over two versions of a second draft of the preliminary 2016 operating budget.
“A zero per cent increase isn't going to cut it,” said Coun. Ray Prevost. “We are going to be faced with the same scenario next year.”
The councillors were provided with a version of the budget that showed the effects of a zero per cent tax increase, along with the impact of a two per cent increase.
After some discussion a slight tax increase won out.
“We don't want to start losing services that residents in the community have started to enjoy,” said Mayor Gene Sobolewski.
“It is just going to be trying to keep status quo as much as we can.”
The first draft of the 2016 operating budget was presented to council on Oct. 27 and showed a deficit of $777,777.
A number of expenses are set to increase in 2016, including a $300,000 jump in staff salaries due to a four per cent rise in wages for municipal employees as per a collective bargaining agreement.
An extra $226,000 in funding for the local RCMP, and $125,000 for the new and replaced streetlights also topped the list of expenses.
In order to counter these increased expenses administration made a small $250,000 reduction in the street overlay program, a $95,000 transfer of RCMP reserve funds, and a $50,000 decrease in the contingency fund, as well as smaller cuts throughout a variety of departments.
Council also agreed to hold the Centennial Centre grant to $50,863, turning down a request for an increase at a special meeting on Nov. 23.
The cuts and transfers combined to decrease the deficit by $590,503 dropping it down to $187,274.
Administration and council are confident they can find ways to balance the remainder of the budget in 2016.
Options presented to council include instituting emergency overtime only for town staff, implementing a hiring delay and reducing programs.
The local swimming pool is set to be shut down for at least two months while workers re-grout the tiles that line the inside of the pool. This is expected to save the town money while the pool is out of service.
The budget will be presented to the public on Dec. 1 at a special meeting where residents will be asked for their thoughts and opinions.
Decisions loom around capital budget
A revised 2016 capital budget was presented to Town Council last week, with $4.87 million in spending allocated to upcoming projects.
The new version of the budget showed a $1.03 million increase from the $3.85 million that was earmarked for projects in the initial capital budget.
The majority of the new funds have been assigned to the continuation of the 51st Ave. redevelopment project. A total of $2.1 million has been set aside to fund that project, which will see construction continue west of the previous construction zone.
Other significant changes saw the town subtract $250,000 from there road overlay program, which will now see a budget of $750,000 for next year.
Council still has several big decisions on their hands when it comes to the capital budget as a number of critical infrastructure projects are piling up.
A variety of projects have been listed on the 2016 budget followed by a series of questions marks as council has yet to decided how much they want to allocate to each.
The 52nd Ave. sewer back-up repair project, and new FCSS building are two projects that are still question marks on the 2016 budget.
The Bonnyville Municipal Library is also slated for a major expansion, with $20,000 set to go to a feasibility study in 2016.
