It’s time to talk budget. Each year, one of the most important responsibilities of Council is to set the budget, this year it is more challenging than ever. With a preliminary look at the budget and significant projects on the horizon, we will have to make very difficult decisions.
At the regular meeting on October 15, Council reviewed the 2025 – 2029 Financial Plan Policies and Guidelines. This is where Council provides feedback to staff on items related to financial policies, such as the proportion of funding sources, distribution of property tax revenues and permissive and revitalization tax exemptions. In addition to policies, Council also looks at development guidelines, such as the strategic plan, general inflation, tax increases, capital project priorities, service levels, financial assistance to organizations and clubs and more.
Of course, the topic which gains the highest public interest is tax increases. This year, the District may be facing increases that range in the area of 8.25% to 10.25%. This is due to anticipated increases for 2025 being:
- 3% to 4% for regular inflation
- 1% increase for annual policing reserve transfer
- 1% to 2% increase for annual recreation reserve transfer
- 1.25% increase for a new GIS staffing position
- 2% increase for reserve contributions to Capital Works Reserve
Simply put, a 10% tax increase for the municipal portion of taxes means the following for a residential homeowner for 2025:
- Property assessed at $250,000 – a municipal tax increase of $7 per month
- Property assessed at $450,000 – a municipal tax increase of $12 per month
- Property assessed at $750,000 – a municipal tax increase of $20 per month
It is important to note, that these potential increases are without any borrowing costs or new significant capital projects included. With the Wastewater Treatment Plant being a requirement and preliminary costs almost maxing out our debt capacity, it is crucial that this year’s budget should be on everyone’s radar.
While we understand the increases will be high, the costs listed above are unavoidable in the case of inflation, or critically important in planning for the future. Council has challenged staff to do all that they can to search for efficiencies and bring forward any ideas they can for cost-cutting or containment efforts. This could be things like closing the Recreation facilities for three days every week, halting the windrow removal program or cutting back on other services. While we are not suggesting these items, Council wants to look at the clear picture of what costs savings could include, and we want to put everything on the table and think outside the box. Another cost savings measure Council feels necessary is freezing Category 1 Funding to local organizations, not increasing any of the amounts from 2024. While this may impact groups, it is a cost savings measure we can implement right away.
In considering these options, the key for Council will be getting feedback from the public. We need to hear from the residents in Sparwood on how they feel about reducing services to save money, or alternatively, raising taxes to maintain what we have and meet the ever-increasing requirements of where we need and want to be in the future. To provide feedback, Council may be reached directly, our contact information and the Contact Us Form can be found at https://sparwood.ca/contact/. This year, the Town Hall meeting will be taking place on Tuesday, November 26 at 6:00 pm in the Community Hall. A big focus of the meeting will be the budget and we strongly encourage everyone to attend. Now is the time to provide your thoughts and bring your solutions. To learn more about the Financial Plan Policies and Guidelines, watch the recorded meeting here https://vimeo.com/1020992942. Future details regarding the budget will be found at www.sparwood.ca.
Post Date: October 29, 2024 | Category: Mayor's Monthly Editorial News & Updates