BONNYVILLE – The first draft of the Town of Bonnyville’s 2023 operating and capital budget has been released. While next year’s capital budget remains balanced, the town’s operating budget will require some attention in order to get it back in the black.
The Town’s General Manager of Corporate Services Renee Stoyles, told council that the 2023 operational budget shows a $721,034 deficit, speaking during a regular council meeting on Oct. 25.
Stoyles stated the reason behind this deficit is the result of some decreases of revenue since the 2022 Final Budget, as well as elimination of a reserve transfer for snow removal, minor decreases in farmland taxes, ATCO Franchise distribution fees, RCMP lease, bylaw fines, and MD water and sewer revenue.
On the expenses side, one of the largest increases to the Town’s operating budget came in the form of RCMP and policing costs. Policing costs that need to be covered by the Town are estimated to range from between $350,000 to $400,000 next year.
Coun. Neil Langridge wanted more background on the substantial policing increase.
“That's based on the COLA (cost-of-living adjustment) that was approved in 2022,” explained Stoyles.
She indicated that the Town has been using funds set aside in a reserve to help cover policing costs from 2016 to 2022, “but now going forward, there's an increase in contract as well.”
The Bonnyville RCMP detachment is also anticipating being fully staffed with no vacant positions for the upcoming year. If the detachment does not maintain a full complement of members over the next 12 months, invoices from the RCMP detachment to the Town will be adjusted as needed.
Langridge drew special attention to the fact that more than half of the current operational deficit for the 2023 budget is related to increased policing costs that fall to the municipality to cover.
Stoyles also noted that other expenses covered by the Town have increased by $623,116 within the current year, since the 2022 Final Budget.
These changes include funding requests from outside organizations, technology cost increases, repairs for the Public Works shop, and fuel costs, among others unforeseen expenses.
Balanced 2023 capital budget
Although administration presented a balanced 2023 capital budget totalling $16,390,093, the Town’s administration is seeking further fine tuning from council.
After a Strategic Planning Session last month, Recreation and Wellness as well as Economic Development was identified as council’s top two priorities for the upcoming year.
In the first draft of the Town’s capital budget, $3.1 million has been earmarked for Wellness and Recreation projects, additionally, $1 million is slated to be placed into a reserve for a new pool to be constructed down the road.
Administration offered suggestions on some capital projects that could be scaled back or postponed altogether, while some other projects were recommended to be completed earlier than initially scheduled.
Scaling back road rehabilitation for 48 St. was identified as a cost saving option for the upcoming year, while infrastructure replacement for 52 Ave. and shared left hand turn upgrades for 46 St. were recommended to be deferred to 2024.
Suggestions also included deferring the southeast sanitary force main upgrade until 2024 and deferring a Wastewater Treatment Master Plan to 2024.
Stoyles also indicated that the Jessie Lake Trail Lighting Phase 1 and 2 could be deferred due to an unsuccessful grant application that was intended to supplement the cost of the project.
The municipality was successful in getting grant funding for the third phase of the trail light project that stretches from Gurneyville Road to 66 St.
Administration also recommended that the Scale House Weigh Station purchase be moved up from 2025 to the 2023 budget as the current building needs to be replaced. The cost to replace the weigh station building is expected to jump in cost from $60,000 to $100,000.
Second draft of 2023 budgets
The second draft of the Town’s operational and capital budgets will be presented to council at the Nov. 22 regular meeting.
Following the approval of both budgets second draft, administration will present the most current plans for the operational and capital budgets at a Budget Open House in council chambers on Dec. 6. at 6 p.m.
Residents are welcome to attend and ask questions following the presentations. The meeting will also be live streamed.
Council will take into consideration feedback received from residents before an Interim Budget is passed before the end of the year.
