BONNYVILLE – After three days of in-house deliberations, the MD of Bonnyville council approved the 2023 operating budget and capital plan that includes a three per cent tax hike for municipal ratepayers.
The MD’s operating budget sits at $109.4 million while the capital budget, which doesn’t include carryover projects from 2022, came in at $20.1 million.
During a regular council meeting on Nov. 23, the balanced budgets were presented in tandem with two tax levies totalling a three per cent increase in order to cover an operating shortfall of $1.8 million.
"Currently, before council makes any approvals on this report, our end result of the deliberations over the three days is a budgeted shortfall of three per cent,” Susan Walker, the general manager of Corporate Services, told council on Nov. 23.
“So, a two per cent for a General Tax Levy and one per cent for Environmental Reserve and that's the value of that three per cent shortfall. Once Council approves this, the budget will be fully funded."
The two per cent General Tax Levy will be transferred to the municipality’s Bridge Reserve to provide financial stability, according to municipal documents.
Additionally, the one per cent Environmental Tax Levy will be transferred to an Environmental Reserve for future purposes.
“This amount is subject to adjustment upon the actual development of our Property Tax Bylaw,” noted Walker.
While the 2023 operating and capital budgets were approved during the Nov. 23 meeting, not all councillors supported the budget as presented.
Ward 2 Coun. Darcy Skarsen said, “I can't support the capital side of this budget and I won't support it for those reasons and others that I expressed throughout the whole budgeting process.”
Skarsen was referring to the municipality's financial injection of $1.6 million into Kinosoo Ridge for the 2023 capital budget.
In the MD’s operating budget, which highlights past and projected spending costs, it states that operating expenses for Kinosoo Ridge were $4.1 million in 2022. An operating budget of $5.4 million was proposed for the upcoming 2023 budget.
The operating budget forecast for Kinosoo Ridge in 2024 and 2025 are $5.7 million and $7.4 million respectively.
“I mentioned it in deliberations, Kinosoo Ridge, the fact that we are still dumping $5.5 million or the $4 million last year, up to $ 7 million more in the next two years, is concerning,” said Skarsen.
“That isn’t including the capital of $4 million we put in last year and the $2 million we’re putting in this year.”
Skarsen said he felt the funding being directed to Kinosoo Ridge was unnecessary for the upcoming year.
Budget amendments
The budget also includes a review and increase of the MD’s water and sewer rates, despite the municipality closing all its lagoons to outside haulers earlier this year.
According to administration, the incremental increase to water and sewer rates will help move toward a partial cost recovery model.
The water and sewer rate increases are intended to generate an additional $127,720 for the municipality, according to the MD’s operating budget amendments document.
Reeve Barry Kalinski told Lakeland This Week, “That is just a projected number. So, if it came to council and we passed that rate increase - which I highly doubt that is going to happen - by such and such a number, that's what it would be... And then the levy was to be put aside for future water and sewer problems and environmental stuff like that.”
Speaking to the possibility of an increase to sewer and water rates for MD residents, the reeve added, “Nothing's changed until that comes to council, and I really don't think that's going to pass.”
Other amendments to the 2023 operating budgets include a two per cent cost of living adjustment (COLA) for council members that will see an increase to the overall budget of more than $12,000.
The operating budget also saw a $100,000 cut in print advertising.
Axed from the capital plan was an expansion for French Bay and three items proposed by the Public Safety Department, one of which was a licence plate reader.
Added to the capital plan following council deliberations are engineering costs to lay the groundwork for a boat launch at the Cold Lake Campground.
Budget consultations did not take place with MD of Bonnyville residents for the 2023 budgets.
Last year, the MD hosted budget information sessions in Ardmore, Cherry Grove, Glendon and La Corey at the end of November.
Budget open houses are common practices in Lac La Biche County and the Town of Bonnyville.
The 2023 mill rate will be brought before council in May, after the MD receives the provincial requisitions for education and Lakeland Lodge.
