Press Release - March 17, 2026 - Town of Lac du Bonnet Receives Revised Provincial Order Reducing Deficit Recovery Requirement
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Official Mayor Statement from Mayor Ken Lodge
Press Release - September 26, 2025
The Town of Lac du Bonnet is providing the following update to residents regarding its financial position, the Province of Manitoba’s involvement, and the steps taken by Council and Administration to address past financial reporting and deficit concerns.
Background
In 2025, the Town of Lac du Bonnet identified issues related to its financial position, including accumulated deficit and discrepancies tied to the 2022 financial year. As a result, the Province of Manitoba issued an Order directing the Town to address these deficits.
On September 25, 2025, Town Council passed a resolution to comply with the Province’s Order by planning to borrow $896,189 over a ten (10) year period to recover the identified deficit amounts. A borrowing application was subsequently submitted to the Municipal Board.
Financial Review and Audit Amendments
To ensure accuracy and accountability, Council took additional steps beyond the original Order requirements. The Town retained a financial consultant and worked closely with its Auditor to complete a detailed review of the 2022 and 2023 Financial Statements.
This review resulted in amendments to the 2022 Financial Statements. The updated financial statements were submitted to the Province of Manitoba as the final audited figures for that year.
Change in Audit Services
Following the adoption of the amended 2022 and 2023 Financial Statements, the Town dismissed its previous audit firm and initiated a competitive Request for Proposals (RFP) process for new audit services.
Through this process, the Town retained Exchange Group, a firm with specialized experience in municipal auditing. Exchange Group is currently working to complete the Town’s 2024 and 2025 Financial Statements, with the goal of bringing the Town fully up to date and into compliance with provincial financial reporting requirements.
Request for Reconsideration
Based on the revised financial information, the Town formally requested that the Province of Manitoba reconsider its original Order. This request was submitted on January 20, 2026.
On March 4, 2026, the Province responded and issued a revised Order reflecting the updated financial position.
Revised Provincial Decision
Under the revised Order, the Town is now required to recover $206,660 through taxation over a three-year period, rather than borrowing $896,189 over ten years.
This results in:
An annual recovery amount of approximately $68,887 per year for three years
An estimated municipal tax impact of $38.93 per $100,000 of portioned assessment
This outcome eliminates the need for long-term borrowing and significantly reduces the financial impact on residents.
Current Status
Council has formally accepted the Province’s revised Order and has directed Administration to withdraw the previously submitted borrowing application from the Municipal Board.
The Town is continuing its work with Exchange Group to complete outstanding audits and ensure all financial reporting is current and compliant with provincial regulations.
Moving Forward
The Town of Lac du Bonnet remains committed to:
Strong financial management
Transparency and accountability
Accurate and timely financial reporting
Continuous improvement of internal financial processes
Council and Administration recognize the importance of maintaining public trust and will continue to provide updates as progress is made.