FAQs

City staff will be focused on the following priorities and principles as they start working to develop the draft budgets for 2024: 

• Align the budget with Council's new strategic priorities
• Complete projects already in progress
• Highlight investment and growth needs and associated funding strategies, which include cost-efficiency initiatives
• Continue to demonstrate transparency around the City's budget process, budget details, and associated impacts on tax and utility rates
• Maintain fiscal sustainability longer-term
• Continue to build on meaningful community engagement opportunities related to the budget process

Leaders of City departments develop their department budgets each year by analyzing previous budget allocations, strategizing adjustments, and prioritizing resources for community growth and sustainability. 

The City's 2023 Operating Budget is currently allocated across various departments and service areas as follows:

Helping to influence the City's budget decisions is not limited to participating in the budget engagement. Opportunities to help shape the City's spending priorities exist throughout the year. For example: 

• Help shape decision-making by participating in project-based City engagement activities;
• Apply to join a City advisory committee; 
• Join / volunteer with community groups that work with the City;
• Write a letter to Mayor and Council (email clerks@newwestcity.ca), or sign up to speak to Council at a delegation or public hearing; 
• Participate in the election of Mayor and Council every four years. 

The work is guided by the following principles to ensure the budget is:

• Sustainable: Maintain assets in a state of good repair through reasonable property tax / utility rate increases, and without disruptions to services. Living within our means;
• Adaptable: The ability to change debt levels or leverage reserves, ability to ramp up or down on spending; 
• Stable: Predictability of City’s sustainable revenue sources and less reliance on external funding or third party funding; and
• Accountable: Fiscally prudent and responsible; the ability to ensure that the City’s financial decisions are in the best interest of all. 

Industry standards suggest that cities should maintain reserves (savings) equivalent to 5-10% of the value it would cost to replace their physical infrastructure. This is important because it helps cities prepare for potential increases in construction costs and inflation over time. 

By setting aside these reserves, cities ensure that they have funds available when it becomes necessary to replace their infrastructure. This practice helps cities manage financial risks and ensures that they can adequately meet the changing needs of their assets in the future.

The City’s debt tolerance is guided by the Municipal Finance Authority (MFA). The MFA plays a crucial role in the financial management of cities. They conduct a thorough evaluation of a city's financial position and plans, considering factors such as revenue, expenses, and existing debt levels. Based on this evaluation, the MFA sets guidelines for the City's debt tolerance.

The City's 2023 budget timeline was adjusted due to Council onboarding. Typically, the City's goal is to adopt the budget each year in January.

To ensure meaningful community input in the budget development process, it is important to start budget engagement earlier. By hearing from the community before the draft budgets are developed, we can foster greater transparency, and seek to incorporate the community's voice.