Official Mayor Statement from Mayor Ken Lodge
Press Release - September 26, 2025
Overview
In 2022, the Town of Lac du Bonnet identified a significant financial deficit following a detailed audit. This FAQ is intended to provide residents with clear, transparent information about the situation, the steps being taken to address it, and what it means for the community.
1. What is the total deficit?
The Town has identified a 2022 deficit and accumulated deficits totaling $896,189.00.
2022 Deficit amount $470,333
Accumulated Deficit amount $425,826 from 2017-2021
2. What caused the deficit?
The deficit resulted from:
- Inaccurate budgeting
- Unbudgeted expenditures
- Overspending on capital projects
- Unexpected major repairs to municipal assets
There is no indication of malicious intent behind these issues.
3. What is being done to address the deficit?
At the September 25, 2025 Regular Council Meeting, Council passed a resolution to proceed with borrowing the required funds over a 10-year term.
As part of the legislated process:
- A public notice will be issued
- A borrowing by-law will be drafted
- The by-law will be submitted to the Municipal Board for approval
Annual debenture payments will begin in 2026 and will be levied through the general municipal portion of property tax bills.
4. Are the 2023 and 2024 audits complete?
No. The 2023 and 2024 audits are still outstanding.
A financial consultant is currently assisting with the review of financial documents to ensure accuracy and completeness before submission.
5. What steps are being taken to prevent this from happening again?
The Town has taken proactive steps to improve financial oversight and accountability, including updating and implementing many financial policies and procedures and undergoing a comprehensive review of current by-laws and other framework documents to ensure accountability and transparency.
6. What role is the Province playing?
The Province of Manitoba reviewed the audit and issued an order requiring the Town to recover the deficit through borrowing. While the Town has received some guidance, the recovery plan and implementation are being led by Town Council and administration.
7. Will this affect my property taxes?
Yes. The borrowing will result in annual debenture payments starting in 2026, which will be included in the general municipal portion of property tax bills.
8. What projects were underway between 2021 and 2022?
Several important community investments were made during this period, including:
- Wharf Project – resulting in a beautiful new town dock
- Purchase of 82 Park Avenue – since sold to help recover shortfalls
- Purchase of Environmental Options Recycling Depot
- Arena Foundation Upgrades
- Watermain Renewal Projects
These projects were undertaken to improve infrastructure and community services.
9. How is the Town ensuring transparency going forward?
The Town is committed to:
- Following all Provincial regulations and guidelines
- Implementing strong financial policies and procedures
- Providing clear and transparent reporting
- Engaging with residents through regular updates and public notices
10. Where can I find updates?
Updates will be posted on the Town of Lac du Bonnet website, shared through official communication channels, and discussed at Council meetings. Residents are encouraged to stay informed and participate in the process.