Budget Insights 2025: A Conversation with Director of Finance Brian McCulloch
As we prepare for 2025, understanding how the Municipality of Crowsnest Pass manages its finances is more important than ever. In this exclusive conversation, Director of Finance Brian McCulloch provides an inside look into the key aspects of the 2025 budget.
From a high-level budget overview to essential topics like debt management, the capital plan and funding, and community investments, McCulloch breaks down how financial decisions are made to meet the needs of our growing community. He also dives into important details such as property assessments and taxes, utility rates and user fees, and investments in municipal equipment and infrastructure.
Beyond the numbers, this conversation highlights how residents can play an active role in the budgeting process through community engagement—because building a strong future is a team effort.
Whether you're a resident, business owner, or curious citizen, this is your chance to learn more about the financial planning that keeps Crowsnest Pass moving forward!
Budget Overview
Can you provide an overview of the 2025 Operating and Capital Budgets?
The 2025 Operating and Capital Budgets focus on managing the municipality’s money responsibly while keeping services running smoothly. The operating budget covers everyday costs like staff wages, supplies, and utilities, while the capital budget is used for big projects like fixing roads, upgrading water systems, and improving recreation facilities. The budgets are balanced, meaning we don’t spend more than we bring in, and any leftover funds go into savings for future needs. These plans make sure the community gets the services it needs while preparing for long-term growth and stability.
How do the 2026 and 2027 Operating Budget projections align with the 2025 budget?
The 2026 and 2027 Operating Budget projections align with the 2025 budget to ensure steady, long-term financial planning, as required by the Municipal Government Act. These projections build on the 2025 budget, considering future needs like inflation, population growth, and maintaining service levels. By planning ahead, the Municipality can prepare for changes, avoid surprises, and make sure there’s enough funding to support both current operations and future priorities. This approach helps keep the community stable and ready for long-term success.
How does the 2025 budget reflect the municipality’s commitment to maintaining service levels for residents, despite financial pressures such as reduced grant funding?
The 2025 budget reflects the municipality’s commitment to maintaining service levels for residents by carefully balancing available funds despite financial challenges like reduced grant funding. The province is requiring our community to cover the cost of enhanced RCMP policing services, adding $400,000 annually to our expenses that was not there a few years ago. On top of that, the province now only pays half the property taxes for provincially owned properties, further increasing our expenses. While grants help fund big projects like infrastructure improvements, the rising costs from these provincial decisions directly impact the services we can provide to residents. To address these pressures, the budget prioritizes essential services and uses careful planning to ensure residents continue to receive the programs and support they rely on, even with limited resources.
Debt Management
Is there any new debt being undertaken in 2025?
No, there is no new debt being undertaken in 2025. The municipality is committed to managing its finances responsibly and funding projects without adding to its debt load.
How does the municipality plan to manage increased debt servicing costs, with principal payments up by $183,000 and interest costs increased by $186,000?
The municipality plans to manage increased debt servicing costs, including $183,000 in higher principal payments and $186,000 in additional interest, by relying on revenue from user fees and property taxes to offset these expenses. Careful long-term planning ensures that as existing debt, like the pool loan ending in 2026, is paid off, those funds can be redirected to other needs. This approach helps balance current obligations while preparing for future financial flexibility.
Capital Plan and Funding
How is the capital plan funded?
The capital plan is funded through grants, reserves, and occasionally debt, though no new debt will be needed in 2025. Reserves are like savings accounts where money is set aside each year by different departments to prepare for specific future needs. These funds are restricted and can only be used for designated purposes, such as covering unexpected costs, funding major infrastructure projects, or supporting approved initiatives. This careful planning ensures the municipality can invest in essential improvements without placing additional pressure on taxpayers.
What are some of the critical infrastructure projects included in the $2,464,000 capital commitment and new initiatives funded by the $1,253,300 allocation?
The commitments include many important infrastructure and new initiative projects. Some exciting ones for the public are the outdoor skateboard park and the MDM playground, which will provide great recreational spaces for the community. Additionally, there are significant enhancements planned for water and sewer infrastructure, ensuring reliable and improved services for residents. These projects focus on both community enjoyment and essential upgrades.
Community Investments
What specific community groups will benefit from the $1,049,000 allocation in the 2025 budget?
The $1,049,000 allocation in the 2025 budget will benefit various community groups through grants for operational purposes, events, one-time projects, and Family and Community Support Service programs. Over half of this funding is dedicated to supporting the Library and Senior Housing, ensuring these essential services remain strong. Other groups will receive funding for programs and events that enrich community life, making this investment a direct boost to the well-being of residents and the vibrancy of the municipality.
Financial Management
Will the 2025 budget result in excess funds being carried forward, and if so, what is the purpose of maintaining these funds?
No, the 2025 budget is designed to balance at the time it is approved. This means revenues are planned to match expenses, ensuring that we can maintain service levels. If we were to fall short, it could affect our ability to provide essential services to residents.
FYI: According to the Municipal Government Act (MGA), municipalities are not allowed to operate with a deficit budget. This rule ensures responsible financial management and prevents municipalities from overspending.
Property Assessments
How will the property assessments conducted in early 2025 influence the final tax rate amount confirmed during the Tax Rate Bylaw process?
When the budget is created, the exact property assessments and corresponding revenues are not yet known. The budget is based on estimated assessment values, and once the final assessments are completed in February 2025, the Municipality reviews these figures to confirm the revenue needed to support the budget. This information is used during the Tax Rate Bylaw process to set the final tax rates (millrate), ensuring the approved budget aligns with actual revenues.
If assessments are higher or lower than expected, the tax rate may be adjusted to meet the Municipality’s revenue requirements while maintaining fairness for taxpayers.
If property assessments differ significantly from expectations, what measures will the Municipality take to adjust the budget accordingly?
If assessments vary significantly, the Municipality has plans in place to adjust. If the revenue does not reach the estimates used during the budget process, options include revisiting spending priorities, delaying non-essential projects, or drawing from reserves to cover gaps. This flexibility ensures the Municipality can continue to deliver services and meet its commitments even if assessment revenues differ from initial projections.
Taxation, Utility Rates and User Fees
Why does the budget affect my property taxes, utility rates and user fees?
The budget affects your property taxes, utility rates and user fees because these are the main sources of funding for the services and programs the Municipality provides. Property taxes help cover essential services like snow removal, road maintenance, policing, and recreational programs. Utility rates fund water, wastewater, and garbage services and user fees help to ensure quality programming can continue to be offered to all residents.
When the Municipality plans its budget, estimates are used to figure out how much money is needed to deliver these services. Based on these needs, property tax rates and utility fees are adjusted to ensure there is enough funding to meet the community’s needs while maintaining a balance between affordability and service quality.
How does the 0.74% increase affect property taxes (issued by April 30th annually) for residents?
- If, at the time of assessment, your home is valued at $350,000, this will have a $1.46/month or $17.51/year increase to your property tax bill.
How will the 2.6% increase in utility rates impact the average household?
The average household would have an increase of $2.75/month or $33.03/year for their water, sewer, garbage and recycling bill. These increases will not come into effect until July 2025.
Equipment and Taxes
If the municipality canceled planned purchases of equipment or pickups, would that result in lower taxes?
No, canceling planned purchases of equipment or pickups would not lower taxes because these are capital expenses, not operating expenses. Capital expenses are for big, one-time purchases like vehicles or buildings, funded by grants that can only be used for these purposes. Operating expenses, on the other hand, cover everyday costs like staff wages, maintenance, and services such as snow removal. Since the grants for capital expenses can’t be used for operating expenses, canceling equipment purchases wouldn’t increase services or lower taxes. In fact, it could lead to higher costs over time to repair and maintain older vehicles.
Community Engagement
How does the 2025 budget reflect the Municipality's commitment to preserving essential services without reductions?
The 2025 budget reflects the municipality's dedication to maintaining the same level of essential services for residents, even while accounting for inflation and rising costs. Careful planning and efficient use of resources ensure that critical services like road maintenance, policing, and recreational programs remain unchanged, allowing the community to continue benefiting from the same high-quality services it relies on.
In what ways does the budget support the Municipality’s long-term vision for community success and resiliency?
The 2025 budget supports the Municipality’s long-term vision by investing in strategic initiatives that foster growth and stability. Key projects include tax incentives to encourage housing development, improving and expanding trail networks to enhance tourism and recreation, and supporting new campgrounds for both leisure and residential use. The budget also prioritizes deep infrastructure improvements, ensuring reliable services for years to come, and creating an environment that attracts new commercial activity, driving economic development and strengthening the local economy.
How can residents participate in the budget process?
Residents have several opportunities to get involved in shaping the budget. Surveys are sent out every spring to gather input on community priorities, and public feedback is encouraged during presentation of the draft budget, which is open for residents to attend and share their thoughts. Additionally, residents are always welcome to reach out to their elected officials with questions, ideas or constructive feedback. Contact information for council members is available on our website making it easy to share your voice and help ensure the budget reflects the needs and priorities of the entire community.