Debate rages as M.D. council compromises to 3.4% tax increase in 2025 Budget

Gridlock over proposed 5% tax increase on Nov. 26 and Dec. 10, called by one councillor “ludicrous”, eventually led to the 2025 Budget numbers being adjusted, with some higher than anticipated provincial money, keeping transfers to reserves the same. 

After debate, failed motions, and compromises, the M.D. of Bonnyville passed the interim budget of 2025 on Tuesday with a projected 3.4 per cent tax increase.

This represents an operating budget at just over $61 million, and the capital budget at $18.9 million. 

But it was not easy to get there.

The intention of passing the budget on Tuesday, Nov. 26 was foregone after several failed motions, interpretations of Robert’s Rules of Order, a lengthy in-camera session related to a $2 million gravel expenditure, and fundamentally conflicting views about how much money should be allocated in reserves for next year — budget discussion was postponed to the Dec. 10 date to avoid gridlock of six councillors (Dana Swigart was away).

The core disagreement was about a projected five per cent tax increase. Some on council believed it was necessary in order to keep reserves flush with rising costs for future projects.

Other councillors believed five per cent was too much of a bump, and this was the time to not put as much away in reserves and target a two per cent rise.

Motions for each side were attempted on Nov. 26 and failed, including a motion to postpone that was also initially rejected, leading to an open question about how to proceed.

“This is getting a bit ridiculous,” said Reeve Barry Kalinski during the meeting.

Finally, a motion to move budget discussion to Dec. 10 passed with a flipped vote.

Renewed discussion

With all seven on council present at Tuesday’s meeting, new information was brought to the forefront.

Susan Walker, general manager of corporate services for the M.D., explained that initial projections for 2025’s Assessment Year Modifiers (AYM) from the provincial government are five per cent higher than anticipated. 

That represented an additional $1.6 million potentially at the M.D.’s disposal, a million of which was suggested to use towards lessening the tax increase.

However, councillor Josh Crick put a motion on the floor to pass the originally suggested five per cent increase.

“I personally hate tax increases. I wish we had to make next is nothing for taxes. But I do like driving on the roads, and I might be able to cross the bridges. And if we’re going to keep our roads up to up to par and our bridges functional over the next 10 years, then we need to have a modest increase and like, just to keep up with inflation,” Crick said at the Tuesday meeting.

Councillor Ben Fadefiw said for the price of maintaining services, and preparing for increased infrastructure needs, funding reserves in this fashion is a good idea.

“It’s tough, right? I mean, we’re looking at the $72 annual increase, which works out to be about $6 you know, per month. We have some amazing services…There’s not a lack of projects that need funding.”

Councillor Don Slipchuk also questioned whether they were going to “prolong the pain” by putting off projects, and having costs continue to increase.

Counter

Meanwhile, councillor Darcy Skarsen, was firmly against the increase. He had tabled the two per cent increase that was previously defeated.

He called it “ludicrous.”

“I’ll echo what I said in the past, and I think that five per cent tax increase is too high,” he said to council.

“Even without an increase of zero, we would still be putting over ten million into reserve funding. To me, it’s just ludicrous. I don’t understand the logic behind it, so I’ll be voting not in favour of a five per cent tax increase.”

Councillor Mike Krywiak and Dana Swigart also commented they would vote against.

The motion with the five per cent increase was defeated.

Reeve Barry Kalinski said in light of new AYM figures, he didn’t think they ask for the full five per cent anymore.

“We got a million that we’re playing with, it could be up to $2 million. So to put it at five percent, I think it’s a little high.”

A motion for 3.4 per cent was eventually carried and passed.

The municipality will get a clearer look at all the financials in the spring, when the final budget is passed. Changes can be made from now until those final assessments are done.

Capital

The M.D. says they will use upwards of $11 million allocated over two years from federal and provincial funding programs to repair or replace several bridges throughout the municipality. 

Some $200,000 will be spent to outfit the new Cherry Grove Fire Hall, and a total of $34,000 toward a municipal scholarship program, aimed at students in healthcare fields.

Roughly $14.2 million in the capital budget is allocated to infrastructure needs.