BONNYVILLE – When the 2022 Provincial Budget was released on Feb. 24, there were key items that the Town of Bonnyville’s Mayor Elisa Brosseau was looking for, some of which were addressed, while other topics were left unanswered.
“There was certainly some key things that I was listening for that did jump out for me,” Brosseau told Lakeland This Week.
“Coming out of the pandemic, as rural municipalities, we are struggling and so are the businesses and the people in our municipalities. So, I have definitely been listening for a recovery plan of what the provincial government is going to do for us.”
In some ways, the provincial budget did address concerns with $10 million going towards downtown revitalization efforts in Calgary and Edmonton in an even split.
“They did talk about helping to revitalize communities through downtown initiatives, which was speaking our language because that is something that... our council is looking towards on the economic development side of things,” said Brosseau. However, the province did not indicate that any other Alberta municipality would be seeing funding for downtown revitalization.
Overall, Brosseau did acknowledge a lack of regional representation in terms of budget allocation.
“I definitely feel that we are being underrepresented or underfunded in the northeastern part of the province. I did go to the budget presentation in Edmonton at the Legislature and as the finance minister was doing a speech, they did talk about a lot of these other great projects and initiatives that are going on – and it seemed like in all areas of the province – but I didn't hear of anything here in the northeastern part of the province. So that does give me pause for concern.”
But, the lack of representation motivates her to be more vocal, she said.
"It also motivates me to want to get in front of the ministers and get in front of the provincial government... We have got so much industry out here, we have so much capacity as far as infrastructure and labour, and a willingness to want something in our area, some sort of projects – some sort of some investments.”
Boost to healthcare
One area seeing a funding boost that was a positive sign for Brosseau was increases in healthcare spending.
The UCP government has committed to spending $45 million over the next three years on the Rural Facilities Revitalization Program, which will assist in funding infrastructure upgrades across rural Alberta.
Nearly $15.1 billion has been allocated for Alberta Health Services (AHS) for 2022-23, while the province has promised $90 million per year for rural physician recruitment and retention.
"On the healthcare capacity side of things, it’s obviously something we are struggling with... and is something that we need to continue focusing on such as recruitment and recruiting doctors,” noted the mayor.
The province has also earmarked $6 million over the next three years for the RESIDE program that will work towards bringing 60 new physicians into 15 pre-identified rural municipalities. Included on this list are the City of Cold Lake and Lac La Biche County.
Emergency Medical Services (EMS) will also see a funding boost of $64 million for a total of $587 million for the 2022 fiscal year.
With increased strain on EMS services across the province including in the Lakeland, more funding for EMS is welcome news, says Brosseau.
Since the beginning of 2022, Bonnyville ambulances have been dropped from a scheduled shift and shutdown due to short staffing at least eight times, according to the EMS division of Health Sciences Association of Alberta (HSAA).
Drop in MSI dollars
Although a reduction in Municipal Sustainability Initiative (MSI) grant funding was anticipated and indicated in previous budgets, Brosseau says the reduction will impact local capital projects and necessary upgrades for aging infrastructure.
"We knew that there was going to be less MSI funding, this isn't something that just was sprung on us. We knew and so we were able to budget accordingly,” she said.
"Financial implications for us as a municipality are changing, as in they will be giving less to municipalities. So that is something that we need to be aware of because it changes the way we go forward in revenue generation. If we are getting less from the province, we still have a municipality to run,” Brosseau explained.
“Now we have to try to find either how we are going to work with less money, or how we can come up with the difference.”
Taking a look at the Town’s needed capital and infrastructure projects, the mayor said council and administration looked at what could be put off, and what projects needed to be completed right away.
"We can either find money or save up the money, but we still have to operate at the service level that we are. And so, I think that money just has to come from cutting back on some of those capital projects that we might have wanted to do.”
Shrinking provincial grants could translate to further tax increases, Brosseau acknowledged, adding that before a decision like that is made other options will be explored.
The Town’s 2022 interim capital and operating budget was passed by council on Dec. 14 and has already indicated it will include a two per cent tax increase, as well as a two per cent increase for municipal services such as garbage collection and utility fees.
“As a municipality, we need to sit back and take a look at what our strategic objectives are and how that relates to our budgets. And if under those strategic actions, there are certain projects that may be funded through some grants or some cost sharing with other municipalities, that would be an option,” she added.
No matter what, she says the 2022 provincial budget will be felt locally for better or worse.
Increases to Education Tax
The 2022 provincial budget also includes a hike in the education property tax.
“In Budget 2022, the education property tax requisition will be adjusted upwards by a modest 1.5 per cent to $2.5 billion, to help keep up with the increase in education operating costs,” states the Government of Alberta’s website.
This means that in 2022, municipalities will be billed at a rate of $2.65 per $1,000 of their total residential/farmland equalized assessment value.
Whereas non-residential rate will be set at $3.90 per $1,000 of equalized assessment value, according to the information released by the province.
“It's unfortunate, but we really have no control over that. We are basically told was we are to recuperate for the education tax, and this is automatically collected from residents,” said Brosseau.
Increases to tax rates by the province is unlikely to change council’s decision to bump up municipal rates.
“We don't necessarily take a look at it and then make a decision in regards to our mill rate, in conjunction with the education tax. Again, we still have to operate at a certain standard, and we need to make sure that we have got the funds to do that, regardless of what the education tax is."
Brosseau added that tax increases are rarely a decision that people support, but when residents understand the breakdown of where the dollar amounts go, the actual tax implication is far easier to digest.
Pointing to the Town’s last tax increase in 2018, Brosseau said, “I don’t think we have been fiscally responsible... We continue to take from our reserves, which just isn't very responsible as a municipality. Because in the end, if we just keep pulling for our reserves and if those dry up then we are looking at a huge tax increase, which is an even larger implication to people's daily lives – and that is what we don't want to see.”
Brosseau continued, “If we take a look at everything – all the services that we get for that – I think all things equal.”
