The Town of Bonnyville opened the floor to residents to discuss the proposed 2019 budget, and they weren't disappointed.
Around a dozen community members attended the town's annual budget open house on Tuesday, Dec. 4, asking tough questions about the municipality's operating and capital budgets.
A balanced budget was presented to the public, after adjustments were made following council's recommendations during their Nov. 27 meeting.
Answering questions from those in attendance, council asked the public what they think of the plans and how they're doing.
"I think you did a terrific job," expressed resident John Irwin, adding he was surprised by the number of people who attended the event.
Resident Mathilda Morrison said, "You're doing a wonderful job. I really appreciate what you're doing... I know it's easy to complain, but to give someone a good word to say you're doing a good job, it's hard."
Operating budget
The town is looking at a decrease in revenues of $199,507 compared to 2018, bringing the overall income for 2019 to $22-million. Before administration made the suggested changes, there was a deficit of $309,805 in the operating budget.
After eliminating the need for a two per cent tax increase, the town presented a revised operating budget to residents during the open house.
Council's decision to nix the proposed tax increase was a topic of discussion, with attendees in favour of it.
Mayor Gene Sobolewski said, "We're trying to shoot for zero because we understand. We may be shooting ourselves in the foot a little bit, we're going to evaluate that in future years. But, the discussion council had was anywhere from zero to about one per cent. We're going to try, and at least the direction so far is to try zero."
Administration balanced the budget by transferring $324,900 from the general operating reserves, and increasing utility rates for water, sewer, and garbage by 2.2 per cent. The monthly fixed rate will increase by 55 cents to $25.01, and the consumption rate will go up by five cents per cubic metre to $2.46 per cubic metre. Based on a consumption of 13 cubic metres per month, the adjustment means families would see a $1.20 increase.
According to the director of finance, Renee Stoyles, the town hasn't increased their water rate since 2013.
Council considered deferring waterline borrowing until the end of 2019 and a reduction of expenses in areas such as conferences, contributions, and RCMP contracts, among others.
The waterline was a topic brought up by resident Kathryn Leblond, who asked how close Bonnyville is to getting water from Cold Lake.
CAO Mark Power noted that while construction has started on the booster, it hasn't begun on the actual pipeline. Before they can get shovels in the ground, they first need approval from Alberta Environment.
"We'll probably be starting (construction) in the new year, but this is another one of those things. The (Iron Horse Trail) plan has been with Alberta Environment for roughly eight months awaiting approval. We're going to face the same thing when we actually come up with a plan as to how to do the repairs on the trail... because right next to the trail is an intense bird nesting site," explained Power.
The possibility of an increase to water rates when the pipeline is up and running was also raised. Power hopes to keep them in-line with the ones currently in place.
"We have extraordinarily low water rates in Bonnyville right now. We don't pay very much for our water," he expressed.
The majority of municipal taxes collected in 2019 will go toward public works at $2.8-million. Roads, streets, sidewalks, and lighting take up $775,767 of the budgeted funds.
Protective services are the second highest cost for 2019. About $2.1-million has been allocated, with $1.5-million going toward police services. This includes an increase of $113,655 to wages to accommodate a new member.
The debenture for the C2 will be paid in full at the end of 2019, and the $252,085 currently used from taxes will be eliminated. Administration suggested transferring this amount in 2020 for tax collection for the waterline.
Capital budget
Total capital expenditures expected for 2019 saw an increase of $1.9-million over 2018, which brings it to a total of $14-million. Capital funds available through grants is just over $1.4-million, and the town's Municipal Sustainability Initiative (MSI) funding is expected to decrease by $1.2-million.
Concrete numbers for trail upgrades weren't included in the draft. Administration still didn't have them available at the time of the open house. Without these costs included, the town presented a balanced budget, however, that could change once the project is added.
Suggestions to cover these unknown costs included funding the deficit from future capital, taking a portion of the deficit from general reserves, decreasing the renovations on the current pool ahead of the aquatics centre feasibility and visioning study, or a combination of any of those options.
Irwin wanted to know the possibility of construction on the aquatics centre following the completion of a feasibility and visioning study, and if information would be available to taxpayers should taxes be increasing to cover the costs.
"Depending on the amount, it's a legislative requirement to advertise... But, it depends on what we actually build. Right now, I don't anticipate it would be a sum of money that won't require advertising," Power explained, adding council could always allocate the taxes currently going toward the C2 to cover payments on the aquatics facility.
A security fence at the local RCMP detachment comes at a cost of $13,500, with $10,000 being taken from protective services funding.
The $30,000 Sobolewski suggested allocating for an arts facility feasibility and visioning study was another point of interest for those at the open house.
"We've added it to the budget, whether it gets executed or not hasn't been determined yet. We've got the money so if council does decide, we've got the money sitting in the budget. But, it hasn't been to the point of execution and that's where (we are)," detailed Sobolewski.
Attendee Morris Mickalyk wondered if the town was moving ahead with live streaming council meetings, which Power noted was in a similar situation as the fine arts centre study.
"Council asked for it to be in the budget open house draft so they can see what the big picture looks like with everything in the budget... To answer the question directly, that's a council decision. Hopefully, on an interim basis we'll know (soon), but on a final basis, it's going to be in April or May before we pass the final budget," he detailed.
With the feedback collected from residents, the final draft of the 2019 interim budget will be back for council to vote on at their Dec. 11 meeting.
