BONNYVILLE – In order to balance the Town of Bonnyville 2022 interim capital and operational budgets, councillors voted unanimously to increase the Municipal Tax by two per cent during the Dec. 14 regular council meeting, among other increases and project deferrals.
The Town’s interim operating budget sits at $22.91-million and the interim capital budget sits at $27.97-million for 2022. However, both budgets can be amended prior to the approval of the 2022 Tax Rate Bylaw, which will likely be passed in May 2022.
Although council did not have a public conversation about the 2022 interim budgets before approving them on the Dec. 14, following the meeting Mayor Elisa Brosseau told Lakeland This Week that councillors had several discussions on budget items leading up to the council meeting.
“We were going in with a deficit, which we cannot do. We have to deliver a balanced budget to the province by Dec. 31. So, we've had a few conversations of needs and wants, what we can live with, and what we can live without to be able to come to a balanced budget.”
Speaking to the municipal tax increase, Brosseau said, “We are not an anomaly. I have heard of our neighbouring municipalities who are also implementing (municipal tax) increases and it was just a hard decision we had to make.”
At the meeting, councillors also agreed to increase the utility services and consumption fees, as well as the garbage collection fees by two per cent.
The recommendation to increase the utility and garbage fees was made by administration to offset the cost of inflation.
According to the bank of Canada, the inflation rate for material goods has risen by 4.4 per cent in 2021. The rate of inflation for service has risen by 2.1 per cent. This is based off of Canada’s Consumer Price Index (CPI).
With a two per cent increase for the Town’s utility service fee, the cost per month will rise from $12.63 to $12.88. The utility consumption fee will also rise from $2.51/m3 to $2.56/m3.
For 2022, the Town’s garbage fee will increase from $12.90 per month to $13.16 per month.
The last time the utility rates and the garbage fees increased was in 2019 by 2.1 per cent.
By increasing the utility and the garbage rates effective Jan. 1, it will add $43,142 and $6,754 of additional revenue to the Town’s 2022 operating budget, respectively.
Other measures taken to balance the 2022 operational budget include canceling a transfer of money into the capital reserve for future projects and drawing $146,044 from the general operating reserve operating reserve to cover the remaining shortfall.
Generally, it is a common practice for the Town to contribute funds to the various capital and operating reserves. This year, however, council has opted to forgo contributions to the capital reserve.
“We try and do that every year, it is a really great accounting practice that has been implemented here the town so that we are putting a little bit of money away for future projects – if we can,” said Brosseau.
This year, the Town will not be able to contribute to its “rainy day” fund, but money has been put toward reserves for a new swimming pool and rebranding for the town.
Public push for a pool
One project that Brosseau said she hears about from residents is of a desire for a new swimming pool.
Feedback from members of the public can help council prioritize capital projects over the short and long term.
“That's something that we have to take a long hard look at... what can we budget for now? What are some of those capital projects that we can put off so that perhaps we can put money aside starting right away for a new pool?” she said. “I’m happy to say we are starting to save up for a new pool. But that just means there's other things, for example, expansion of the library that have had to be put off for a couple of years, but I think overall, everybody was happy with the outcome.”
Over the next five years, $1 million with be put in a reserve to build a new swimming pool, every year.
Also added to next year’s budget is $75,000 that has been designated to rebrand the Town.
During a virtual budget open house on Dec. 7, CAO Bill Rogers stated, “We have money in the 2022 budget to take a look at a possible rebranding and we are currently looking from an economic development and tourism perspective at a regional branding exercise in partnership with the MD, so stay tuned.”
More information on the potential rebranding is expected to be presented to council within the next couple of months.
Additional items that were incorporated into the Town’s budget for the first time were grants for the Hive Youth Hub and the Bonnyville Men’s Shelter.
One factor that seems to be playing a role in the Town’s operating budget, according to Brosseau, “is the economic hardships. We had a lot more organizations come to us and ask for funding. We had an addition of programs, such as a beautification loan program that we did for businesses in town. So, we had a few extra things that we've been doing this year that added to it. Whether they were the cause of a recession or COVID – it could have been both.”
Capital Interim Budget
Following the virtual open house on Dec. 7, many capital projects slated for 2022 have been reprioritized to take place over the next five years to aid in balancing the capital budget.
After reprioritizing projects, administration is anticipating just over $1.1-million in grant funds from the province and another $6.13-million in 2022 funding from ID349 (Ward 6 North), which is the same amount received in 2021.
The pending grant applications for 2022 capital projects that the Town is waiting for confirmation on amount to $2.83 million. If anticipated project-specific grants fall through, administration noted that those projects may be deferred until funding can be secured.
The anticipated deficit for the 2022 interim capital budget is $608,460. In order to balance the budget, council approved covering the shortfall with funds transferred from the general capital reserve.
Large capital projects that have been deferred in order to allow for a balanced budget include the library expansion, which has been bumped to 2024, the construction of a FCSS building being moved to 2025, and the construction of a scale house, also to 2025.
The majority of other projects deferred are related to street upgrades and rehabilitation. Some roadway projects and studies have been postponed a year, while others have been pushed back until 2026.
With many major roadway repairs and upgrades to curbs and gutters taking place over the summer, Brosseau said, “We felt that there were some projects that we could put off or we could defer for a year or two because of that.”
It was noted by administration that any projects not completed this year may be carried over to 2022 or deferred until future years. The cost of these in-progress projects will be known once the 2021 year-end has been completed and factored into the 2022 final budgets.
At this time, there remains several million dollars worth of projects that are ongoing. The final expenditures for current projects may have a bearing on the amount of capital available in the 2022 budget.
Due to Town facilities being closed on Dec. 28 in lieu of Christmas and Boxing Day, which falls on the weekend, council passed a motion to cancel the meeting that had been scheduled for Dec. 28.
