The Municipal District of Bonnyville Councillors have agreed that $37.5 million in an unrestricted surplus account will be moved to a restricted surplus account.
Ed Rondeau, Reeve for the MD says the transfer was made so the MD can operate without borrowing funds. Rondeau says from January 1st to September 15th, “we have to operate without tax dollars, so that money is there to operate to make it through each year to September 15th without having to borrow funds. Otherwise we’d have to go out, borrow that kinda money, till we got our taxes and take the tax dollars and pay it plus the interest.”
Along with not having to operate in the red, Reeve Rondeau notes that the funds were transferred to the specified account to help with funding from The Alberta Government. If the provincial government sees the MD operating in a surplus they are less likely to allow grants.
The net cost of the M.D. using its own funds, rather than borrowing, is approximately $500,000. Making this budget change now, leaves a more accurate picture of the actual unrestricted funds that are available to provide services to the residents of the M.D.