Zero Tax Increase for Town of Bonnyville

2017 Operating Budget Approved

The Town of Bonnyville voted to approve the 2017 Operating Budget at Tuesday’s Council Meeting with no increase to taxes. The Town was able to achieve a balanced budget without an increase by putting aside some projects, such as overlay, until a stronger economy presents.

According to the Council package, “residential taxable assessments have decreased by approximately 6.18 percent. Non-residential property have decreased by 11 percent.” Taxes are determined by multiplying the mill rate by the assessed value of a property. The assessments are done the year previous to setting the mill rate. Due to the decrease in overall assessments, the Town was expecting to have lower tax revenue. An adjustment was made to the mill rate to compensate that loss, however the change would result in an projected zero increase in taxes paid by the property owner. The mill rate will increase by 6.37 percent (0.3427 mills) for residential and 13.13 percent (0.9752 mills)  for non-residential.

Changes in the Operating Budget 

• Decrease Bulk Water, Sewer Disposal & Class III Landfill Revenues
• Additional $36,000 Funding for Municipal Census
• Additional Funding for Summer Students under Metis Youth Summer Placement Program
• Increase of $20,000 in Power Costs for Streetlights
• Increase of $73,131 in Landfill Liability
• Additional $4,000 for Canada 150 Celebrations (total budget $64,000)
• Additional $50,000 in Revenue allocated from Regional Community Development Fund
• Various items adjusted from 2016 costs to 2017 costs
• Decrease in transfer from Operating Reserve to Balance the 2017 Operating Budget in the amount of $132,292 to $350,833
• Increase in Contingency for Unknown Expenses; such as the Golf Course and AUPE Negotiations

Golf Course & SPCA

Going into Tuesday’s meeting Council had a request from the Bonnyville Golf & Country Club for $40,000 to assist in replacing their irrigation system. The request, if approved, was designed to be paid over three years. This item was not on the Operating Budget, as Council had yet to discuss approval. The Town’s Contingency was increased in the 2017 to allow for discuss on this topic.

On Tuesday the SPCA requested of Council a $25,000 operating grant. Council noted that although the Contingency was increased it was not increased enough to allow for both the Golf Course and the SPCA’s requests; as the SPCA had not requested until that evening.

Seeing as the Operating Budget was approved, Council asked Town Administration to bring options for funding to the table at a later date.

School Taxes

The School requisition is set by the Province of Alberta and collected by the Town through property taxes. The Town does not have any control over the school taxes, which went down for 2017. A combined, residential and non-residential, decrease of 2.75 percent over 2016. But because of the reduced assessment the mill rate would increase 0.56 percent (0.0147 mills) for residential and 10.04 percent (0.3695) for non-residential.