City begins planning process for next Capital Budget
Mayor Blaine Hyggen says the City’s next Capital Budget will be fully centred on needs rather than wants.
At its Community Issues Committee (CIC) meeting on Wednesday, Lethbridge City Council took the first major step towards its next Capital Budget – which will include a four-year (2027-2030) approved budget within a 10-year (2027-2036) financial plan, referred to as the Capital Improvement Program (CIP).
“We know there are already many, many more projects than there is funding,” says Mayor Blaine Hyggen. “We want to be upfront with our residents and our community partners about this reality. Based on what we know, this City Council will be extremely limited in the CIP projects we can approve. Because of this, we won’t be going out looking for new projects but rather continue our focus to address the needs we already have lined up.”
Darrell Mathews, Chief Financial Officer & Treasurer, presented a Capital Budget Workshop 2027-2036 CIP to the CIC Wednesday, outlining that the Capital Budget includes one-time construction costs for items such as roads, recreation facilities, parks, buildings, facilities and utility projects.
“The focus of today’s presentation was to provide an overview of why the City of Lethbridge prepares a Capital Budget, what the CIP is, the direction Council has already provided and the process that will guide the 2027-2036 CIP,” says Mathews. “This will set the foundation for future discussions on proposed Capital projects, available funding, and the difficult choices Council will need to make later in the budget process.”
As part of his two-part presentation, Mathews outlined:
Part 1: 2027-2036 CIP Overview
- Creation of the Capital Budget
- What the Capital Improvement Program (CIP) includes
- Budget Direction from City Council
- The 2027-2036 CIP Process
- Summary of Proposed Capital Projects
- CIP Estimated Funding
- Next Steps for City Council
The information provided will assist CIC with the upcoming 2027-2036 CIP deliberations, set to take place in November, with approval by City Council in December. The development of the 2027-2036 CIP will also align with the direction provided by City Council to include:
- Placing a high priority on maintaining current capital assets over building new assets
- Proposed capital projects that have been identified within existing City Master Plans or City Asset Management Plans
- Proposed capital projects with bike lanes will not be considered, except for any bike associated projects on pathways that have been identified as a multi-use pathway
- To work with the community to provide information about other grant opportunities e.g. Community Capital Project Grant (CCPG), that are available for community group capital projects
“Our City Council recently approved its 2026-2029 Strategic Plan to set a clear direction for this Council term,” says Hyggen. “Through our coming budgeting processes, we will continue to focus on our commitment to support existing businesses, to attract investment and strengthen Lethbridge’s role as a regional hub for agriculture, agri-food, advanced manufacturing, trade, logistics and emerging industries.”
The Municipal Government Act (MGA) Section 242 & 245 requires that every municipality must adopt an Operating and Capital Budget that covers each calendar year. The City of Lethbridge follows this MGA requirement by the adoption and approval of multi-year Operating and Capital Budgets.
Council’s CIC will also meet on Thursday, starting at 9 a.m., for a 2027 Operating Budget Workshop session. In May 2024, City Council approved changes to the Capital and Operating Budget process by staggering the two budget deliberations by one year. Due to this process change, the 2023-2026 Operating Budget will need to be extended by one more year to include a “stub year” for 2027.