The 2025 municipal budget puts a large focus on utility needs, prompting an increase in wastewater and water user rates.
Other considerations from council during discussion of the budget on Jan. 7 surrounded fire operations, including the need for a new fire truck which was budgeted for this year.
Approved on Jan. 21, the preliminary budget includes a 5.5 per cent tax increase for municipal operations and focuses on future planning with a capital asset plan and creation of a reserve policy.
Water and wastewater rates
At a meeting on Feb. 4, council approved a 10 per cent increase to water and wastewater charges both including a basic charge, basic charge for non-metered additional dwelling unit, usage charge and vacant lot charge.
Regarding grants and partnerships, director of finance for SPMRM Cheryl Taylor-Gale said having recently received $4.5 million in grant money for water supply line upgrades, the likelihood of receiving another grant in the near future is low.
On the partnership side of things, she noted a partnership with Sun Peaks Resort LLP that allowed the municipality to receive the PZ1 watermain loop at a low cost. SPMRM is looking at other development opportunities including partnerships with developers.
The 2025 municipal budget marked $2,048,787 for development cost charges (DCC) on water, wastewater, drainage, roads and parkland.
DCC rates were updated in 2024, Taylor-Gale said, however there were no developments and due to lack of infrastructure the municipality had to place restrictions on projects.
“The cost of supplying water is significantly higher than the cost of the water being consumed,” she said, explaining this is due to the maintaining and upgrading the infrastructure needed to ensure reliable and sustainable water.
A potential leak detection meter upgrade looked at in 2024 turned out not to be cost effective as are other water efficiency projects.
Because of this, she explained increasing the rates is necessary, as water and sewer systems are self-funded, financed primarily through user fees.
Additionally, she stated that the operating budget for these systems is $3.4 million, serving 986 customers and SPMRM is $11.5 million in debt.
Regarding SPMRM debt, Taylor-Gale reported that through the municipality’s current financing the rate to borrow is 4.4 per cent while the current prime rate is 5.2 per cent.
“All of our debt that we currently have is under 4.09 per cent,” she said. “Which is lower than any rate we’d get if we tried to refinance.”
Around $6.5 million in loans is financed at 0.91 per cent, Counc. Kelly Dye said, adding these are up for review this September.
This portion of the Feb. 4 council meeting concluded with a mention from acting mayor Len Hrycan on the five year financial plan, which recognizes council is considering successive utility rate increases to fund this expensive piece of infrastructure.
Rates may not increase the same amount year over year, he explained.
Capital projects and other costs
Water and wastewater projects have been budgeted for this year.
Wastewater projects include effluent balancing pond expansion at $2 million hazard and risk assessment of slopes at $150,000, RI basin at $200,000 and snow making at $60,000.
Water projects include the surface reservoir expansion for $75,000, electrical asset upgrade and automation at $30,000, a meter pocket reader at $20,000 and surface water supply line at $6,081,200.
Fire operations, another large expenditure, includes the need for a used fire truck which has been budgeted for at the initial cost of $770,000. Additional costs include communication equipment, fire fighting equipment, SCBA packs with masks, a turn out gear extractor and personal protective equipment.
Public works has many capital projects to be undertaken as well including road repairs and improvements, tool cat replacement, trail & solar lights from P5 to Switchback Creek, an EV charging station and road changes with signage upgrades.
The total cost for all capital projects is over $10 million.
Compared to the 2024 budget, taking into account changing expenses and revenue, the 2025 municipal budget capital has gone up $28,450 for the daycare, $53,470 for bylaw services, $255,935 for administrative operations and $28,695 on water.
Deficits are seen in fire operations, building and planning, council, public works, Sun Peaks Centre and wastewater.
Reducing administrative and non-essential costs was looked at upon budgeting, Taylor-Gale assured the meeting room on Feb. 4, adding that the municipality is undergoing department efficiency reviews and has outsourced non essential services to the regional district.
Though the municipality cannot lessen tourism taxes, council had been talking to provincial ministers about the belief that tourists should be the ones to pay for tourist services, guided by previous mayor Al Raine, and that advocacy was brought up by chief administrative officer Deanna Campbell as something that will likely continue.
The main objectives of the 2025 municipal budget as identified by Taylor-Gale include operational transitions regarding the daycare changing hands to the Early Learning Society of Kamloops and the Sun Peaks Centre to Tourism Sun Peaks.
Other priorities include a focus on the water and wastewater masterplan, continuing to address organizational and policy needs as well as maintain existing levels of service, limiting new debt and build reserves focusing on five year operating/capital planning, incorporating updated DCCs and reviewing, updating and developing key bylaws and policies.
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