How we pay for big projects
Capital projects are the large, long-term investments that keep our city running. They include new roads, the Tamsin Valley Leisure Centre, the water treatment plant, and the Tamsin River flood-mitigation berm. Because these projects cost millions, we cannot pay for them all at once with the money we collect each year. Instead, we use a capital financing policy that spreads costs over time and keeps our finances steady.
Three main ways we pay
- User fees: When a project mainly benefits one area or a specific group, we charge the users. For example, water and wastewater bills help pay for the Tamsin River Water Treatment Plant.
- Reserve funds: We set aside money each year from savings, development charges, or surplus operating funds. These funds act like a personal savings account for the city, so we can pay for projects without taking on new debt.
- Borrowing: When a project benefits the whole city or will last for decades, we may borrow money. We spread the repayment over the useful life of the asset, usually up to 20 years. You will never see a sudden jump in property taxes because of a new loan.
Debt limits and borrowing rules
Wrenford follows strict borrowing rules to keep your taxes predictable. Our policy sets clear limits on how much we can borrow each year. We also track our debt-servicing costs closely. By policy, we keep the cost of paying back loans below 10 per cent of our total operating budget. This means the vast majority of your property taxes still goes to services like garbage collection, roads, and fire rescue, not to old loans.
Reserves and sinking funds
We maintain several reserve funds for specific purposes. The Major Renewal Reserve helps replace ageing equipment on transit buses and water pumps. The Park Renewal Reserve covers resurfacing trails and replacing playgrounds. We only add money to these reserves when our long-term financial plan shows a surplus. If a reserve runs low, Council can choose to borrow less or delay non-essential upgrades until the fund recovers.
How projects get approved
Every capital project starts as an idea in a department or a neighbourhood. The City Manager's office reviews the request, checks the long-term financial plan, and places the project in the Capital Works Program if it fits our funding limits. Council must approve the programme and every borrowing by-law. We hold public budget engagement sessions each spring so you can see where the money is going and share your priorities.
Where to find the details
All our financing rules, past budgets, and financial reports are public. You can view the current annual budget, the long-term financial plan, and the approved Capital Works Program through the links below. If you need help reading the numbers or want to know how a specific project is funded, our finance team is ready to help.
Contact the Finance Department
For questions about capital projects, borrowing, or the budget process, contact the City Treasurer's office or email the Finance Department at [email protected]. You can also drop by Wrenford City Hall, 100 Mercer Street, during business hours or call 519-555-0100.