Annual Budget Process
Each year, the Village of Lytton plans its annual and five-year budgets to manage services, operations, projects, and investments in infrastructure on behalf of the community.
The Village collects revenues from property taxes, fees, and charges to provide services and manage infrastructure, such as water, sewer, and roads.
Village staff prepare the budget with guidance from the Village’s strategies and plans, leadership of Council and staff, and feedback from the community during the budget process and other community engagement throughout the year.
The Village is benefiting in 2024 from the generous grant provided from the Province of B.C. to supplement the property taxes, fees, and charges to enable the Village to re-establish core Village services, while navigating lower revenues from traditional sources.
The Community Charter requires municipalities to adopt a five-year financial plan annually to support long-term strategic decision-making. The Village updates its financial plan annually to reflect changes in strategic priorities, timing for projects or initiatives, and emergent opportunities and community needs.
2024 proposed budget timeline*
The following is the proposed timeline for the 2024 budget process:
- February 5 or 6 – Staff budget workshop with Council
- February 14 – Regular Council Meeting: 2024 budget direction report
- February 29 – Draft financial plan community meeting
- February 29 to March 11 – Draft financial plan community input
- March 27 – Regular Council Meeting: Revised financial plan
- April 10 – First, second, and third readings of 2024-2028 Five-Year Financial Plan Bylaw; 2024 tax rates discussion
- April 24 – Adopt 2024-2028 Five-Year Financial Plan Bylaw; First, second, and third readings of 2024 Tax Rates Bylaw
- May 8 – Adopt 2024 Tax Rates Bylaw
- End of May – Tax notices mailed to property owners
- July 2 – Property taxes due
*Subject to change
The Village, like other municipalities, rely on several funding sources to pay for the services that residents and business owners use regularly and rely on.
The largest source of revenue for the Village’s normal day-to-day operations is property taxes.
Other revenue sources include the following:
- utility user fees (sewer and water charges)
- other user fees (e.g., sewer or water connection fees)
- permit and licence fees (e.g., building permit or business licence fees)
- fire protection fees charged for providing services to neighbouring communities
- investment income
Municipalities also have access to other forms of funding, which are generally used for capital projects. These include the following:
- grants from the federal and provincial governments and their agencies
- proceeds from borrowing (e.g., for a large infrastructure project)
- reserve funds (i.e., specific funds set aside by the Village for future projects)
Part of Council’s decision-making process each year is to determine what levels of funding for services should come from the various sources of revenue.
The Community Charter states that for local governments, “The total of the proposed expenditures and transfers to other funds for a year must not exceed the total of the proposed funding sources and transfers from other funds for the year.” What this means is that the Village of Lytton (and other local governments) must have a balanced budget. Municipalities cannot finance operations with debt.
The Village’s regular sources of funding for core services and infrastructure remain the same; however, since the 2021 Lytton Creek Wildfire, the federal and provincial governments have also committed significant funding towards Lytton’s recovery and rebuilding. Some of the funding ($700,000 per year for six years) goes towards the operating budget as Lytton re-establishes core functions in the Village. The remaining grants are dedicated specifically to recovery and rebuilding projects and activities.
Recovery funding includes the following:
- BC Ministry of Municipal Affairs $6.26 million committed
- Funds used for recovery staffing and contractors, project managers, fire truck and snowplow, and remote Council meeting expenses
- BC Ministry of Emergency Management and Climate Readiness $23.4 million committed
- Funds used initial site clean-up and security, debris removal, remediation, environmental testing and archeological testing
- BC Ministry of Emergency Management and Climate Readiness $21 million
- Funds used for site readiness (backfilling, archaeological costs), recovery staffing, public works building and essential staff accommodation.
For questions or comments about the budget, email Chief Financial Officer Diane Mombourquette at email@example.com.
The Village provides updates on the budget process at Council meetings, on the website and Facebook, and in the weekly e-newsletter.
Provide your input on the draft budget from February 29 to March 11, 2024.