Understanding where we are — and where we’re headed
On November 19, Diamond Valley Council held one of the most important meetings of the year: the first full review of the 2026 budget. Over the coming weeks, this budget will shape our town’s future priorities — from water security and infrastructure repairs to long-term financial planning and community services.
This summary is based on a full review of the meeting agenda, budget materials, and the 42-page transcript from the November 19 Council meeting.
1. The Town identified an Infrastructure Deficit
Council and Administration were candid: Diamond Valley is facing a significant infrastructure deficit after many years of trying to keep property taxes low.
The result?
- Several projects have been delayed.
- Many assets are aging faster than they are being replaced.
- Reserve transfers have not kept pace with long-term needs.
This isn’t a failure — it’s a reality many municipalities are now confronting.
Recognizing the issue is an important first step.
2. The 2026 Capital Budget relies heavily on grants
Approximately 96% of next year’s capital projects are funded through external grants. Only a small portion is covered by local reserves.
Major projects include:
- A flood-mitigation berm
- The long-deferred Sheep River water main replacement
- A town-wide water meter replacement program
- Arena lighting and Fire & Rescue equipment
- Several smaller but essential facility upgrades
Heavy reliance on grants keeps taxes lower but also limits the Town’s control over project timing.
3. Water loss is a major concern — and the Town acknowledged it plainly
One of the most striking points in the meeting was the estimate that Diamond Valley is experiencing around 50% unaccounted-for water loss.
Possible sources include:
- Aging underground pipes
- Under-measuring water meters
- System leaks
- Losses from older infrastructure
The water meter replacement program is a meaningful start.
Accurate measurement helps ensure fairness and reduces both environmental and financial waste.
Water security will remain one of Diamond Valley’s defining challenges.
4. The 2026 Operating Budget reflects rising costs
Draft 1 of the operating budget highlighted cost pressures from:
- RCMP contract increases
- Utilities
- Insurance
- The new wastewater treatment facility
- WCB
- Contracted services
Council noted that many of these costs are outside municipal control.
The original draft would have required a 21% tax increase, but internal restructuring is expected to reduce that to approximately 12% in Draft 2.
5. The Town is protecting reserves where possible
Draft 1 does not rely on reserves to offset operating shortfalls — an important signal of long-term financial responsibility.
At the same time, Administration noted that current contributions are still not enough to fully fund future infrastructure replacement.
This reinforces the need for long-range planning and open public conversation.
6. Why this matters — and how we move forward together
Diamond Valley is at an important moment in its development. The November 19 meeting showed growing awareness of the challenges facing our community:
- Water scarcity
- Climate-related risks
- Aging infrastructure
- Rising operating costs
- Long-term fiscal sustainability
These issues affect every resident and business.
The encouraging news is that many solutions already exist — from conservation and efficient building standards to circular economy ideas and community-led projects.
Understanding the challenges is the first step toward building a more resilient town.
A closing note
This summary was created to help residents follow the budget process and understand the decisions being made on our behalf. As the 2026 budget progresses, Sustainable Life will continue providing clear, accessible public updates.
Sustainability grows when we share it. 🌱
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