Annual Budgets

Each year, Town Council approves an annual budget for operating and capital. The operating budget is divided into general levy and water and wastewater.

Operating budget:

The operating budget provides the necessary resources to fund programs and services to meet the community's needs and accommodates inflationary pressures. The operating budget is primarily funded with tax dollars and income from fees and service charges. The operating budget is used to plan for the municipality's day-to-day expenditures, such as:

• wages
• materials & supplies
• utilities
• maintenance of buildings
• repayment of debt for major projects to deliver those necessary programs and services.

Capital budget:

The capital budget and forecast is a 10-year financial plan. This plan identifies the capital requirements of growth and maintaining existing infrastructure. The capital budget is funded through the following:

• property taxes
• town reserves
• development charges
• debt
• Federal Gas Tax and grants

The capital budget is used to build or rehabilitate assets that will last more than one year.

Reserves and reserve funds provide the financing source for the capital budget. In addition, the reserves and reserve funds receive annual contributions from the operating budget. The contributions help create a solid financial position that supports the town's future cash requirements. Therefore, maintaining enough reserves and reserve funds balances is key to the municipality's long-term financial plan.

• It strengthens its long-term financial sustainability
• It helps to cut fluctuations in the tax rate
• Provides funding to sustain infrastructure.