Council Watch: A 0% Tax Increase, but What Will 2027 Really Cost?

Diamond Valley Council Meeting — November 4, 2026

A proposed 0% increase in municipal property-tax revenue sounds encouraging, particularly when households are already managing rising costs.

But as Diamond Valley Council reviewed its first draft of the 2027 operating and capital budgets, an important distinction emerged: holding property-tax revenue steady does not mean the overall municipal budget is unchanged, or that every household will pay the same amount next year.

The November 4 meeting also brought considerable public discussion about the future of the Dr. Lander Memorial Pool. Although these may appear to be separate issues, they are closely connected.

Both raise a fundamental question: How does our community balance affordability, infrastructure maintenance, service levels, and long-term financial responsibility?

A 0% Property-Tax Increase — With a Larger Budget

The first draft of Diamond Valley’s 2027 operating budget proposes approximately $20.25 million in revenues and expenditures, compared with $19.25 million budgeted for 2026.

That represents an increase of approximately 5.2%.

At the same time, the draft maintains the municipal property-tax revenue requirement at essentially the same level as 2026.

How is that possible?

Municipalities receive revenue from several sources beyond property taxes, including utility charges, franchise fees, grants, permits, and other services.

In Diamond Valley’s case, the proposed budget incorporates increased franchise-fee revenue and previously approved water and wastewater rate changes.

This distinction matters because residents experience municipal costs through more than their property-tax bill.

A 0% change in the Town’s overall property-tax revenue requirement is also not a guarantee that every property’s individual tax bill will remain unchanged. Changes in assessments and the distribution of the tax requirement can affect individual bills.

What About Franchise Fees?

One of the questions submitted for the November 4 meeting concerned the financial impact of franchise fees on residents.

Council’s response provided an estimated additional cost of $257.76 per year, or approximately $21.48 per month, for an average household receiving both natural gas and electricity services.

That estimate depends on the consumption assumptions used in the calculation. Individual households may experience different amounts.

It also does not include increases to water and wastewater charges.

Franchise fees are collected through utility bills and provide revenue to the municipality. They can help reduce the amount that must be raised directly through property taxation, but they remain costs paid by utility customers.

This is why looking only at the property-tax percentage can provide an incomplete picture of household affordability.

A useful question for future budget discussions is:

What is the estimated total annual change in municipal-related costs for a typical Diamond Valley household, including property taxes, franchise fees, water, wastewater, and solid waste?

Presenting those costs together would help residents understand the complete picture.

Investing in Infrastructure: The 2027 Capital Budget

Council also reviewed the first draft of the 2027 capital budget, proposing approximately $4.64 million in projects.

The draft includes:

• $2 million for the berm project carried forward from an earlier year.
• $1.5 million for linear infrastructure.
• $750,000 for an accelerated water-meter replacement program.
• Additional funding for facilities, information technology, and equipment.

Most of the proposed capital funding would come from grants, with a smaller portion drawn from reserves.

One item deserves particular attention: the water-meter replacement program.

Administration explained that accelerating replacement of older meters should help distinguish between water that is actually lost from the distribution system and water that may not be accurately measured.

This is an important distinction.

Replacing inaccurate meters can improve the reliability of consumption data. However, meter replacement does not itself repair leaking pipes.

The information gained should help the Town better identify where physical water losses are occurring and where future infrastructure investments will have the greatest benefit.

From a life-cycle cost perspective, this is a sensible reason to improve measurement before committing resources to solutions.

The larger question will be how the findings are incorporated into the Infrastructure Master Plan and future capital budgets.

The Dr. Lander Memorial Pool: More Than a Budget Line

The future of the Dr. Lander Memorial Pool attracted substantial public participation.

Residents spoke about the pool’s importance to families, children, swimming instruction, recreation, and community identity.

Administration outlined concerns about the facility’s age, mechanical condition, regulatory requirements, staffing, and the financial risks associated with attempting another operating season.

The pool opened in 1964 and is now 62 years old.

The proposed budget initially included funding for a regional swimming arrangement in Okotoks rather than an operating season at the local pool.

The proposed Okotoks program would have provided a two-hour community swimming session on Saturdays, subject to scheduling and a formal agreement.

However, regional swimming access and a local outdoor pool are not identical services.

A local pool offers opportunities for summer programming, lessons, employment, and community activities that cannot necessarily be replaced by a weekly swimming session elsewhere.

At the same time, operating an aging facility carries financial and safety responsibilities that Council cannot ignore.

What Did Council Decide?

During the budget discussion, Council unanimously supported a motion directing administration to move the $75,000 allocated for Okotoks swimming access into the Dr. Lander Memorial Pool reserve.

This is an important development.

It does not mean the pool has been approved to open in 2027. Nor does it establish that the pool must permanently close.

Rather, it redirects proposed funding toward the local facility while further consideration continues.

Council also discussed obtaining better information about the pool’s mechanical condition and exploring opportunities for community involvement.

Residents offered expertise and suggested a community task force to help evaluate the options.

That suggestion deserves consideration.

A well-defined task force could help examine repair requirements, operating alternatives, partnerships, funding opportunities, and long-term costs.

Importantly, its purpose should not be to guarantee a particular outcome. It should be to help the community and Council reach a decision based on reliable information.

Community Participation Has Value — But It Also Requires Capacity

Another theme emerged from the discussion.

Council members spoke about the need for community organizations and volunteers to take greater responsibility for certain services and activities.

There are examples in Diamond Valley where community organizations already play important roles.

Volunteer participation can strengthen a community, bring specialized knowledge into projects, and create a greater sense of ownership.

But there is another side to that equation.

Partnerships, volunteer programs, grant applications, and community committees still require coordination, accountability, and support.

As the Town considers staffing levels and operating costs, it is worth asking whether it is retaining the organizational capacity needed to develop and maintain these partnerships.

Reducing an expenditure today is not always the same as reducing the total cost of delivering a service over its lifetime.

The challenge is to find arrangements that are financially responsible, safe, and sustainable for everyone involved.

What Happens Next?

The November 4 budget presentation was Draft 1, not the final approved 2027 budget.

Council indicated that further discussion and revisions would take place before budget approval, expected in December.

Several matters deserve continued attention:

1. How will the final budget affect the combined annual costs paid by households?
2. How will the accelerated water-meter program help guide actual water-loss reduction?
3. What information is needed to make an informed, long-term decision about the pool?
4. Can community expertise and partnerships reduce costs without transferring unreasonable risks or responsibilities to volunteers?
5. How will Council balance immediate affordability with infrastructure costs that may extend decades into the future?

Final Thoughts

Municipal budgeting is about much more than selecting a tax percentage.

It is about determining what services a community needs, how those services will be delivered, and how today’s decisions affect tomorrow’s costs.

The discussion surrounding the Dr. Lander Memorial Pool illustrates that challenge particularly well.

There are financial considerations, but there are also social benefits, infrastructure conditions, community expectations, and opportunities for collaboration.

None should be ignored.

As the 2027 budget moves toward approval, residents deserve to understand not only what the Town proposes to spend, but also what they will pay, what services they will receive, and what long-term obligations those decisions create.

A question for our community: When evaluating municipal spending, should we place greater emphasis on the immediate annual cost, or on the total financial and community value of a service over its lifetime?

Perhaps the most useful approach is to consider both.

Sustainability grows when we share it.

Sustainable Life — Council Watch