La Ronge Mayor Colin Ratushniak is hopeful grants will cover much of the projected deficit. (Derek Cornet/larongeNOW Staff)

By Derek Cornet

municipal spending

La Ronge 2022 budget includes $1.8 million deficit, no new taxes or fees

Apr 13, 2022 | 5:10 PM

The Town of La Ronge has approved the 2022 capital and operating budget, which includes a nearly $1.8 million deficit to be covered by reserve funds.

“For quite long time there hasn’t been enough attention being paid to the infrastructure of our waterlines, sewer lines, the end of its life wastewater treatment plant,” said Mayor Colin Ratushniak. “There’s a lot of things that have not been addressed over the past many years that have really come to light and are necessary for us to make sure we are not putting any danger or risk to the town continuing to function.”

The large deficit is expected to be a one-time issue to repair infrastructure and purchase new capital equipment. Municipal reserves currently sit at approximately $12 million and will fall to about $10.2 million if what is budgeted for is spent. The total amount coming from reserves is set at $1,767,459.

There is $5.5 million earmarked for capital spending with items including $1.2 million to purchase three loaders, a grader and a sand truck. Spending at the La Ronge Airport will be close to $2 million with just less than half of the amount being used to buy a loader, sweep and plow truck.

Another $1.2 million will be spent upgrading and maintain utilities with much of it going to pumps, piping and drainage. The La Ronge Regional Fire Department will receive $634,000 in capital spending for a heavy rescue unit, equipment for heavy rescue and a thermal imaging camera.

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“The reserve funds are specifically there to address these issues as they build over time,” Ratushniak said, adding chief financial officer Trevor Putz recommended against raising taxes to address the increased spending. “That was obviously a question that did come across from myself and other council members about increasing taxes to offset that, but at this time, he didn’t feel it was necessary and I have to trust our experts who are crunching numbers on a daily basis.”

Ratushniak believes the deficit won’t be as large by the end of the year as he is hopeful administration will be able to successfully apply for grants to cover some capital projects or purchases.

He also mentioned there could be future rate increases to services such as water and garbage collection.

“Some of these things are offset by taxes and are not actually paying for themselves with the fees that we’re charging,” Ratushniak said. “As we start to pull back and uncover some of these deficiencies that have been happening for years, those are things where we may see increases in potentially changing rates.”

The Village of Air Ronge is expected to adopt its 2022 capital and operating budget April 20.

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derek.cornet@pattisonmedia.com

Twitter: @saskjourno