Financial Plan (Budget) and Financial Reporting

What is a financial plan?

A financial plan, which used to be called a budget, must be adopted by all municipalities.  The municipal fiscal year runs from April 1 – March 31.  Property taxation is on the calendar year. The financial plan contains:

• an operating budget;  
• a capital budget;
• a 5-year capital expenditure program; with, 
• an asset management plan. 

If a municipality does not have any capital expenditures planned, this can be noted in the operating budget.  

A municipal operating budget template is available for municipalities. Financial plans must be submitted to the Minister by April 15 - File Municipal Financial Documents. 

Can a municipality budget for a deficit?

Council cannot project a deficit in their operating budget for any fiscal year other than for amortization and the public utility.

If an operating deficit is projected at the end of a fiscal year that is not offset from a reserve fund or surplus fund, the operating deficit must be debited to the operating fund for the next fiscal year unless the Minister has approved another way to address it.  

If a municipal council determines during the fiscal year that their operating expenses are likely to exceed revenues and transfers provided for in their operating budget by more than 5%, the council must notify the Minister immediately and the Minister may approve the operational deficit for that fiscal year.

Where can I learn more about Asset Management? 

The Infrastructure Secretariat has created a Municipal Expenditure Tool to assist municipalities with their costing of asset management plans.  

What are the Financial Plan Regulations?

The MGA Financial Plan Regulations provide more detail on what is required for each of the three components of the financial plan.

• Sections 2 - 6: requirements for the operating budget
• Section 7: contents of the capital budget
• Section 8-9: contents for the capital expenditure program and asset management program.

How is a financial plan adopted?

Council must adopt the financial plan by resolution at a council meeting (open to the public) before March 31. Before the financial plan is adopted, there must be a public meeting held at least 2 weeks before for the purpose of providing the public with information about the proposed financial plan.   

What are the financial reporting requirements for municipalities?

Each year,  municipalities are required to submit a financial plan, by April 15th and audited financial statements for the municipality by October 15th.

What is the Annual Municipal Information Return (AMIR)?

The AMIR is used to collect financial data from all island municipalities.  Municipal Affairs uses the data to generate municipal statistical reports and to meet reporting requirements of Statistics Canada, which uses the data for national reporting.

What are the timelines for financial reporting?

File Municipal Financial Information with the Minister.