Sparwood backs draft budget with 9.75 per cent tax hike

Sparwood council accepted the district’s 2026 to 2030 draft financial plan on March 3 and approved the capital plan for spending, keeping in place a proposed 9.75 per cent municipal tax increase excluding the mine tax pool.

Director of Finance Tao Liu told council there had been no change to the tax information previously presented in January. He said the proposed municipal tax increase excluding the mine tax pool remained 9.75 per cent, while the mine tax increase would be one per cent in 2026.

Liu also said the sewer parcel tax would rise by $150 per parcel this year as part of a three-year increase intended to help pay for servicing of the wastewater treatment plant.

He said 3.5 per cent was due to regular inflation, one per cent for labour costs, one per cent for a policing reserve, two per cent for recreation reserve transfer, two per cent for capital loss reserve transfer and 1.25 per cent for a planning GIS technician position approved earlier by council.

He said there was also an additional 0.75 per cent increase for 2026 community funding requests and another 1.25 per cent increase tied to the low mine pool tax increase, before reductions were factored in.

“All the increase is reduced by the three per cent for operating budget reductions,” Liu said.

The draft plan projects total 2026 revenue at about $30.7 million, including just under $10 million collected on behalf of other agencies. Liu said taxation revenue remained the district’s largest source of income at about $10.5 million, while salaries, wages and benefits made up the largest expenditure.

He also outlined the district’s five-year capital picture, saying the largest increase came in the sewer department due largely to construction of the wastewater treatment plant upgrades. In 2026, funding sources for capital projects are expected to include about $14.8 million in borrowing, roughly $10.2 million in grant funding and about $11.6 million from reserves, for total funding of approximately $36.6 million.

Council heard the district expects reserve balances to sit at about $23.2 million at the end of 2026 and around $30 million by the end of 2030.

Councillor Steve Kallies praised staff for finding savings within the operating plan.

“Well done on the three per cent reduction in operating costs,” he said. “Not only do we provide [the] best service around, but they were able to find a three per cent reduction. Awesome job staff.”

Councillor Jason Christensen raised questions about the 1.25 per cent increase linked to the mine tax pool shortfall and said council would need to clearly explain it to residents.

“I just fear that we’re looking at a punitive thing here, so we just need to explain that a little bit,” Christensen said.

Chief administrative officer Michéle Schalekamp said the increase reflected the mismatch between a low increase in mine tax revenue and broader inflationary pressures.

“The mine pool only went up one per cent for the year, so the increase was very low,” Schalekamp said. “And so, to offset some of the inflationary costs, we had to increase our budget accordingly to make up that difference because inflation is trending around three per cent.”

Mayor David Wilks also pointed to other rising costs outside the district’s direct control, including the regional hospital district levy. He said the increase for an average household assessed at $519,000 would be about $239 this year, plus another $2 tied to Angel Flight.

During the meeting, Liu said public consultation on the draft financial plan would continue with a budget road show and public open house on March 10. The district’s public notice said the road show was scheduled for Greenwood Mall from 10 a.m. to noon and the open house for council chambers from 6 p.m. to 8 p.m. that evening.

Wilks took aim at public apathy around the budget discussion, noting the scale of the plan compared with the small audience in chambers.

“We are discussing $67.4 million in funding tonight and we have three people here,” he said.

Council ultimately voted in favour of accepting the draft 2026 to 2030 financial plan as presented and approving the capital plan for spending. The district has said the financial plan bylaw and tax rate bylaw are expected to come forward later this spring, with final adoption targeted before the provincial deadline in May.