BONNYVILLE – The MD of Bonnyville gave first reading to the 2025 tax rate bylaw that proposes a 3.4 per cent residential municipal tax rate increase, though not without some debate.
The discussion took place on March 25 during their council meeting, and the motion to give the tax bylaw first reading was carried by council, 4-3 with Coun. Mike Krywiak, Deputy Reeve Darcy Skarsen, and Coun. Dana Swigart opposing it.
“The bylaw is proposing a 3.4 per cent increase. This means on a residential property assessed at $500,000, the ratepayer would see an increase of $46.89 on the municipal portion of their annual tax and assessment notice,” said Calvin Bespalko, manager of assessment services.
Bespalko explained that the 2025 budget deliberations were based on the 2024 property tax levy totals, and included council’s resolution, “That council approves the 2025 Operating Budget requirements of $2,165,000 and the 2025 Capital Plan requirement of $18,887,934, as presented in Appendices A and B, attached to and forming part of this meeting’s minutes, representing a 3.4 per cent tax levy increase.”
Bespalko said council has directed any unbudgeted assessment growth revenue to be put into cash flow reserve, and unbudgeted growth “is tentatively $3.88 million”
Skarsen commented that when the increase was last discussed, they did not know there was a tax revenue growth of $1.65 million for linear growth for well and pipelines, and asked if that should affect the 3.4 per cent increase.
Bespalko explained that the 2024-25 tax year is not a “typical growth year. That the three-year tax holiday on the well and pipeline is not expected to occur again, and that the assessment year modifier was higher than typical.”
He added, “These rates usually have subtle increase, decrease, or remain the same. In addition, each year will include another year of depreciation applied against the assessment. If the current Assessment Year Modifier decreased by two per cent, this would have resulted in an estimated revenue shortfall of $1.9 million, to be funded by budget adjustments or the cash flow reserve."
Skarsen spoke out against the proposed tax increase.
“We’re adding another $3.8 million into cash flow reserves, which is actually more than our 3.4 per cent increase. So, to me the answer is simple. Get rid of the increase and we’re still putting $15- or $16 million into cash flow reserve.”
Krywiak also did not support the increase.
“We had an operating deficit of $2.1 million. If you put in the $1.65 million toward the operating deficit, you’ll have a shortfall of $515,000 – so take that from reserves and we’ll have a zero per cent tax increase. I can’t support this bylaw with a 3.4 per cent increase.”
Coun. Josh Crick also offered his thoughts on the increase.
“We approved $1.7 million outside of budget already for a bridge by Alexander, and we approved $8 million for Truman Bridge repairs, then of course $25,000 for the Mental Health Navigator, so we're already up two and a half million over budget, which is eating in quite significantly into what you are claiming as a surplus here.”
Coun. Ben Fadeyiw added to Cricks comments, saying the C2 might also require infrastructure updates, and cited the effects of the tariff wars.
“Having extra money in the bank is a smart thing to do right now,” said Fadeyiw.
Coun. Don Slipchuck agreed with Crick and Fadeyiw, adding the potential for airport expansion and work at the Glendon arena.
Coun. Dana Swigart also commented, saying, “I agree we should have some reserves, I just don't think this is a time where we need to increase taxes, because it's not going toward anything other than reserves.”
Susan Walker, general manager of corporate services, noted that part of the tax strategy is to have enough cash flow reserves to ensure a smooth and stable economy for taxpayers.
