The City of Merritt’s 2024-2028 Financial Plan Amendment addresses several unexpected costs and changes, including staffing, property insurance, and infrastructure repairs.
The amendment was discussed during the Oct. 22 regular city council meeting, reflecting new financial priorities and funding allocations across departments.
One key adjustment includes expanding the bylaw team from one full-time and one seasonal position to two full-time roles, increasing wages for the 2024-2028 period. The proposed change prompted some discussion in council, with a decision to reconsider the additional position in a future closed meeting.
Increased property insurance costs were another notable topic. Post-flood, premiums have risen by 300 per cent, with deductibles up 900 per cent, adding an unexpected burden of $76,389 to the 2024 budget.
The city is actively exploring options for 2025 to mitigate these increases. “We need to find the best optionality we can for our insurance for 2025 and beyond,” said Director of Finance Kevin Natkinniemi.
Natkinniemi highlighted the need to adjust revenue expectations due to lower-than-anticipated sales in permit fees and development services.
“If our costs come in higher or the sale of our services comes in lower, it’s ultimately property taxation that’s balancing that equation,” Natkinniemi explained.
Natkinniemi identified two main areas where revenue has fallen short: permit fees and development services, which are below expectations due to slower urban development; as well as commercial septage, prompting the need to identify new targets and potential upgrades to rebuild the revenue base.
The city also recognized the financial impacts of a lightning strike at the fire station in August 2024. The total known cost of repairs is $19,427.86, covering both material and service costs.
Additionally, repairs for a pipe break at Voght Well earlier in the year have added $45,809.07 to the budget.
Another focus of the amendment is the allocation of Local Government Climate Action Program (LGCAP) funds. Merritt received $175,795 for 2025 and 2026, allowing the city to address emissions and reduce reliance on tax dollars.
The plan proposes purchasing up to three electric vehicles with the grant funds, potentially saving the city $124,000 in capital costs.
“What we’d be looking to do is try and meet some of the pickup requests that were in last year’s capital budget without spending additional funds, so the director of public works and engineering, has agreed to trial one of these electric vehicles, and to free up a pickup that can go to the public works fleet. Then there would be other vehicles potentially for use on other teams, such as bylaw team, and they would have access to a pickup and an EV to divide and conquer the work based on those two vehicles.”
“A budget is an educated assumption on what’s going to happen in the city; we may not meet all of those goals or the outcome may not be what we assumed it might be,” added Chief Administrative Officer Cynthia White.
“Just like making a budget at home, this is not an exact science when you make a budget, it’s not the actuals, it is what we are hoping to see based on previous numbers and educated projections.”
The amendment reflects ongoing efforts to manage unexpected costs while also planning for future growth. As the finance director noted, “Ultimately, this community has been underpaying for services, and residents have to be prepared to pay for the services they are using, whether through fees or taxation.”
The first reading of the 2024-2028 Financial Plan Amendment Bylaw was passed with the removal of the second full-time bylaw officer, but the conversation around service levels, costs, and future financial planning will continue into the 2025 budget discussions.