BONNYVILLE – Bonnyville residents could face higher property taxes and municipal fees in 2027 as Town Council works to close a .65 million operating budget shortfall.

During its October 27 regular meeting, Council reviewed the first draft of the Town’s 2027 operating budget, which projects $35.78 million in expenses against $34.13 million in revenue.

Administration presented several options to address the $1,655,571 deficit, including a 5 percent residential property tax increase, higher commercial property taxes, increased utility and recreation fees, reduced community organization funding, and delayed proposed staffing additions.

No tax increases, funding reductions or service cuts were approved during the meeting. Council will consider the proposals as It works toward a balanced budget.

What’s driving the shortfall?

According to administration, rising policing and fire protection costs, wages and staffing proposals are among the major pressures on the Town’s finances.

The draft budget identifies several increases:

• $621,971 in salaries and wages, including negotiated collective agreement adjustments and proposed new positions.
• $177,650 in police service contract costs.
• $103,546 in fire service contract costs.
• $131,889 in additional equipment replacement reserve contributions.
• $45,000 to conduct a municipal census.
• $32,000 for proposed sewer chemical treatment, animal control and fleet GPS programs.
• $20,000 for a lift station pump replacement.

Another significant factor is the Town’s reduced reliance on reserves.

The 2026 operating budget used reserve funding to help balance expenses. The first draft for 2027 reduces that contribution by $408,956, putting more pressure on the budget.

How much could property taxes increase?

Administration outlined several potential revenue measures.

One option would increase residential property taxes by five percent, generating an estimated $226,026.

Another would increase the non-residential tax rate ratio from 1.7:1 to 1.8:1, generating an estimated $564,791.

The Town is also considering introducing a minimum municipal property tax levy of $500, which could generate approximately $65,502.

Increasing utility rates, administrative charges and recreation fees could generate an additional $334,397.

The options are preliminary, and Council has not decided which measures, if any, to include in the next budget draft.

Administration also calculated what would happen if it addressed the entire deficit through taxation alone.

That scenario would require an estimated 17.24 percent overall increase in municipal property tax revenue, before considering changes to provincial education and seniors foundation requisitions.

That figure is not a proposed or approved property tax increase. It illustrates the scale of the shortfall if Council relied exclusively on taxation rather than combining revenue increases with spending reductions.

Community funding and staffing also under review

Council is considering potential spending reductions to help balance the budget.

Administration identified $78,800 in possible reductions to community organization funding.

Other options include delaying a proposed sports tourism administrative position, saving $62,378, and postponing the addition of two summer student positions, saving $43,371.

Deferring a proposed animal control program could save another $10,000.

These measures have not been finalized.

The discussion comes as community organizations continue seeking municipal support for 2027.

At a special Council meeting on October 28, representatives from the Bonnyville & District Chamber of Commerce, Bonnyville Agricultural Society, Bonnyville Health Foundation, Community Futures Lakeland and Hearts for Healthcare presented their funding requests and outlined their contributions to the community.

Those requests will form part of Council’s broader budget considerations.

Council did not approve any funding allocations during the special meeting.

Could the Town use its savings?

Another option is drawing from the Town’s General Operating Reserve to cover any remaining shortfall.

The reserve had a balance of about $2.61 million at the end of 2025, before adjustments for the 2026 financial year.

Using reserve funds could reduce the amount that needs to be raised through taxes or spending reductions, but would also reduce the money available for future operating needs.

The Town must ultimately adopt a balanced operating budget under Alberta’s Municipal Government Act.

Residents will have an opportunity to weigh in

Council received the first draft of the operating budget and directed administration to continue reviewing options.

A second draft is expected to return to Council on November 24, incorporating feedback from the initial discussions.

Council also set December 1, 2026, for a public budget open house, giving residents an opportunity to review the proposed budget and provide feedback.

Council must adopt an interim operating budget before the end of the year, although it can still make adjustments before It approves the 2027 property tax rate bylaw.

For now, the $1.65 million shortfall remains unresolved, and Council must decide how to balance municipal services, community support, and the financial impact on Bonnyville taxpayers.