County taxation  adjustments to  stabilize reserves

By John Watson Local Journalism Initiative Reporter

Budget season is coming to a head for Wheatland County, as it has come the time of year to complete their final budget.

This process follows their interim budget process which took place in the fall of 2025. At this point, administration looks back on the interim document, completes their audit, and finalizes completion numbers. 

“We have a good idea about what our project year-end values are and that can better inform us of our reserve values going forward for the next year, and then also gives us an opportunity to ask managers what is the status of prior year projects and carry those forward,” said Joel Chiasson, interim general manager of community and development services. “Something else to note … is the last few years, the county has made strides to maintain services and infrastructure while fostering economic growth and development and keeping property tax increases lower. The last few years has also increased the county’s use of the general surplus and reserves to offset the rising inflationary pressures.”

Chiasson pointed out that though this practice has largely been resident friendly, it is not sustainable long-term and has led to a reduction in available reserves to address revenue shortfalls.

According to the administrative report, by the end of 2026, combined reserves and surplus are projected to be approximately $20 million. If the current trend continues, that will fall to a negative position in 2027. 

The draft of the final operating budget is for $56.2 million, which reflects a decrease from the interim budget. Additionally, the capital budget is suggested to be approved at $36.0 million; a $12.4 million reduction.

Administration has also identified approximately $2.4 million in one-time operation costs and noted a temporary reduction in transfers to reserves to stabilize operations and improve clarity between the county’s ongoing and one-time expenditures. 

In order to prevent the county from falling into the red, it was suggested during the March 26 Committee of the Whole meeting that minimum tax increases align with the Municipal Price Index in order to better keep pace with inflation. 

Chiasson suggested the county leverage strategic use of debt, internal borrowing, and revenue tools such as offsite levies as avenues to help stabilize their finances. 

“We are around $44 million to $46 million in (debt) capacity that we still have, so there is quite a bit there, again, recognizing that some of these upcoming growth-related projects may also have substantial costs,” he said. “It is just a matter of balancing and making a plan for how to utilize that capacity – unless you are federal, then it is unlimited.”

Four tax revenue scenarios were presented before the committee to consider before the final budget returned before council. 

These included a 3.55 per cent increase, aligning with the municipal price index; 5.55 per cent, adding a dedicated two per cent infrastructure investment for reserves; 6.58 per cent, including the two previous notations, as well as an incremental step up for non-residential rates, aligning with the average of neighbouring municipalities; and an 8.58 per cent increase, being the most aggressive approach, maximizing revenue for reserve replenishment.

Among the county’s greater considerations regarding expenditure are the ongoing discussions about bridge repair and replacement, boasting an anticipated replacement cost of $181.5 million. 

Though no voting took place on the budget during the meeting, as it was before the committee and not council, members leaned towards the more aggressive taxation approaches. The budget will return before council in a future meeting.