The MD of Bonnyville's new council got to work last week with budget talks during a council committee meeting, with the biggest portion of the $66.7 million budget for the year going to roads and road maintenance.
The draft budget currently includes a $10.5 million deficit to accommodate the various needs presented by administration, which council will try to pare down to zero to balance the budget.
“At this point we need to knock off $10.5 million off of it in one way, shape, or another,” Reeve Ed Rondeau said in a phone interview. Roads, buildings, other projects and “wish lists” will be assessed before council approves the budget.
When asked whether it would be possible to accomplish a balanced budget, Rondeau said, “We have to. We will accomplish it because if we don't, it means we have to borrow money.”
Roads account for nearly 68 per cent of the draft budget, with almost $17.8 million going to construction and nearly $16.8 million for maintenance.
The maintenance budget includes $567,500 for new transportation and utilities staff, including two grader operators and one swing grader operator to cover for absences, as well as other road maintenance and construction staff. Included so far in the draft is $5.7 million for paving Wolf Lake Road and $2 million for Dupre Road.
“The MD needs to finish the road maintenance projects that were missed last year because of the bad weather and then clean up the backlog of road projects that have been on the books for several years. Then we need to tackle roads on a priority basis,” said Reeve Ed Rondeau in a draft budget press release.
Other expenses deemed “large ticket” by the MD will be $7 million for administration office renovations and expansion, $1.9 million for the Regional Community Development Fund, $625,000 for bridges, $700,000 for hamlet upgrades, and $750,000 for C2 operating costs.
The budget also includes $275,000 for financial software, $220,000 for the Regional Fire Training Centre, around $148,000 to replace Rapid Response in Iron River, and $200,000 for the truck dumping station and automatic gate at the Therien Lagoon.
Other items not yet included in the draft are the Cold Lake Community Events Centre and the intersection at Highway 55 and 892.
The MD has an estimated 2011 year end surplus (reserves) of $21.6 million, $13.6 of which is not yet allocated. Director of Finance Gordon Fullerton said in the press release that this money has to last the MD until taxes are collected next September, or else the MD would have to borrow money.
The press release also noted that federal stimulus money has ended and provincial grants are lower than in previous years.
“Council is relying more and more on our own assessment dollars to meet our ratepayers' needs,” Rondeau said in the press release.
Council plans to pass the budget on Dec. 8.
