Why is there a surplus?
The Municipal Government Act requires the Town of Canmore to adopt an operating budget where the estimated revenues must cover the estimated expenditures. This means we can't budget for a deficit.
But, sometimes there is a surplus at the end of the year because of unanticipated increases in non-tax revenue from fees, or greater than anticipated growth, or sometimes there has been savings in expenses.
What happens to the surplus?
In a typical year, the surplus is often allocated to various reserves based upon established policies, financial strategy, and future business plans and strategies.
Current Year Surplus
The operating surplus for 2023 is $2,111,502, which Council allocated to the following reserves:
- $711,000 to the Integrated Transportation Management Reserve
- $600,000 to the Tax Stabilization Reserve
- $550,000 to the General Municipal Capital Reserve
- $250,502 to the Asset Replacement/Rehabilitation Reserve
Reserve Funds
Canmore is sustainable only if both its capital infrastructure assets and its financial assets can be maintained over the long term. The Town of Canmore has a policy to establish reserve funds to ensure the long-term financial stability and flexibility of the Town of Canmore, to position it to respond to varying economic conditions and changes affecting the Town of Canmore’s financial position, and to ensure the organization has the ability to continuously carry out its responsibilities.
To read the policy and learn about the reserve funds held by the Town of Canmore, click here.