M.D. of Willow Creek adopts interim operating budget

By Rob Vogt
The numbers are not completely firm, but the council of the Municipal District of Willow Creek has adopted its interim operating budget that projects increased expenditures of 4.39 per cent, but it is too early to know what effect that will have on property taxes.
The decision came at council’s Dec. 10 meeting, after a report from Johanne Hannas, the M.D.’s director of finance.
She explained the interim budget forecasts $19,738,368 in revenue which includes municipal, as well as an estimate of provincial and local requisitions for school, housing and policing costs.
The net municipal revenues will be $13,824,000 – approximately 3.42 percent higher than 2025, which were $13,350,000.
The interim budget forecasts net municipal expenditures of $18,571,399 – approximately 4.39 percent higher than 2025, which were $17,754,641.
Of that, $893,240 is going to reserves, with $400,000 dedicated to bridge repairs and airport infrastructure in 2026, for a net reserve contribution of $493,240.
Increased costs can be attributed to inflationary adjustments for supplies and labour, and the dedication of additional financial reserves for future capital projects.
It was noted at this time substantial information is not known to provide guidance to council on 2026 property tax rates.
That includes non-residential assessment information provided by the province at the end of February; school property tax requisitions; provincial policing costs; the designated industrial property requisition; local housing foundation requisitions; and any special levies including the Claresholm fire hall renovation which is based upon total assessment in the Claresholm service area.
The final budget will be approved in April. At that time municipal property tax rates will be known.
Administration conservatively estimated assessment growth due to real and inflationary growth will be six per cent in the residential property tax class.
Further information on the 2025 assessment is to be provided in March 2026 during final budget adoption when information including non-residential assessment is provided by provincial assessors.
The draft interim operating budget has been adjusted to reflect 2.5 percent cost of living adjustments for municipal staff. The annual average cost of living adjustment over the past seven years has been 2.78 per cent.
Water utility rates for full cost recovery for the Hamlet of Granum, Moon River Estates, the Pipeline Water Co-op, Willow Creek Business Park and Claresholm airport will be presented for review to council in January 2026 following the close of the 2025 fiscal year.
Costs related of $175,000 to the water well replacement in Moon River Estates, are to be funded from the Moon River Estates infrastructure reserve over the next four years beginning in 2026 at the current rate of $35 per month.
In order to fully implement the capital budget plan for 2027 to 2031 additional funding must be dedicated to reserves.
It was noted the Municipal Government Act requires that before Dec. 31 of this year, municipalities are required to adopt an interim operating budget with a three-year plan and a capital budget with a five-year plan.
Following the adoption of the interim 2026 to 2029 operational budget and 2026 to 2031 capital budget plan, council will consider adopting a final budget in March 2026 following the receipt of non-residential assessment information along with provincial school requisition and policing costs.
The total projected capital budget for 2026 is $15,410,600.
Council then approved the draft 2026 interim 2026 to 2029 operating budget and 2026 to 2031 capital budget.