SIMPLY PUT! Understanding the Municipality of Crowsnest Pass Budget

Presentation by the Crowsnest Pass Taxpayers’ Association Board of Directors,

January 23, 2025

An important role of the Crowsnest Pass Taxpayers’ Association is to inform and

educate taxpayers about the details within the Municipality of Crowsnest Pass

yearly operating and capital budgets. Of concern to Crowsnest Pass citizens’ is the

truth about the budget. Why is government spending high? Why are my taxes

high? Is there a reason for an escalating debt? The unease for the lack of

transparency within the budget also a reasonable concern. Our commitment to

Crowsnest Pass taxpayers is to offer greater insight around the trepidation that

exists for spending, debt and high taxes.

Provincial legislation mandates that municipal governments balance the budget

and not run operating deficits. The Municipality of Crowsnest Pass, without fail,

balances its’ yearly budget. What is not transparent to the taxpayer is how this is

achieved. By raising year by year taxes, our local government has managed to

generate operating surpluses which can and should be added to the reserve fund.

Taxes are not intended to be an opportunity to finance long-term enrichment

spending such as the Bellevue revitalization project. Rather, tax dollars should aim

to ensure a community’s vitality by supporting its necessities such as road

maintenance and infrastructure. Therefore, raising taxes should not be a proposal

to support excessive spending practices because a government chooses to do so.

Excessive spending increases the debt, as well as, increased borrowing and

interest rates on money borrowed. Spending increases because of a more than

adequate ability to generate revenues to fuel spending and surpluses in the

municipal operating budget. This is achieved by raising tax levies. Thus, the rise in

taxes supports excessive spending and, in turn, mounting debt.

Expressed in simplistic terms, the Municipality of Crowsnest Pass raises taxes year

by year for the purpose of spending on “luxury” items. More simply stated, we

don’t spend money on renovating the interior of a home when a faulty, leaky roof

needs significant repairs or buy a luxury car when we are unable to make the

mortgage payments on our home. By spending “luxuriously,” our community is at

risk in the instance of emergent necessities such as aged infrastructure or the

inability to effectively clear roads during a season of excessive snowfalls or

maintain and repair a proficient road system in our community. Spending

excessively is similar to taking a line of credit on a mortgaged home while having

car payments when credit cards are “maxed out.” Extending personal borrowing

increases debt which increases interest payments and thus, very little can be put

into a savings account to save for an emergency fund or a “rainy day.”

As a taxpayer, can you afford yearly increases in taxes and utilities at a time when

the cost of living and goods increase daily? Are you prepared to allow our

municipal government to spend your hard-earned dollars on “luxury” spending?

What are the long-term implications for your taxes if excessive spending continues

and the debt, in turn, increases? At this rate, will you be able to afford your taxes

in 3 years, 4 years, 5 years or 10 years? What would be the people’s choice – high

taxes? a reduction in spending? reducing the debt?

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What do you need to Know?

• spending within the Municipality of Crowsnest Pass budget has been

excessive; this means higher taxes; more debt; more borrowing;

• excessive spending creates the ability to generate revenue by increasing tax

levies to create surpluses in the operating budget which fuels spending;

• in other words: increased tax levies = increased surpluses = increased

spending = increased borrowing = increased interest payments = increased

debt;

• taxes are not intended to finance long-term enrichment for spending (ie

Bellevue Revitalization Project, fleet, etc.);

• taxes are meant to support community necessities (ie infrastructure, snow

removal, road maintenance, etc.)

• by law, municipal governments are required to balance the budget (no

deficits), but instead, the Municipality of Crowsnest Pass raised taxes to

generate surpluses to add to the reserves to increase spending;

• the average tax bill on a home has increased greater than the rate of

inflation or rate of salary increases;

• Crowsnest Pass is in a growth situation with increased property

assessments, increased development and increased growth; not necessary

to have a mill rate unless spending is excessive;

• Council, Mayor, Chief Administrative Officer and administration have the

ability to decrease the debt and lower taxes but have offered no solutions in

the 2025 budget.

What does this all mean?

• Excessive borrowing and spending practices has resulted in unnecessary

taxes;

• Increased taxes combined with the rising cost of living has created financial

burdens, quickly and unexpectedly, as well as emotional stress for lowincome families, fixed income residents, renters and young families;

• Taxpayers are faced with difficult choices and crisis situations such as:

Groceries or electricity;

Youth sports or vehicle maintenance;

Dentistry/medical or home heating;

• Families and children are encountering a change in quality living from living

in a house to renting to living in an RV;

CROWSNEST PASS TAXPAYERS’ ASSOCIATION MEMBER MEETING,

JANUARY 23, 2025

BUDGET POWER POINT PRESENTATION