Just three months into the new year, Ritchot’s council gave third and final reading to their 2025 financial plan, effectively giving it life.
The creation of the municipal financial plan begins in January each year with presentations from each of the various RM departments about their needs for the coming year.
Over the ensuing weeks, council deliberates with the CAO and CFO, eventually leading to a formalized plan which is presented for public scrutiny before its final acceptance.
On Wednesday, April 2, in council chambers, the plan went public. Residents were invited to attend in person or via remote participation.
“Administration uses council approved services, strategic direction, and priorities as the foundation on which to build the annual operating and capital budgets,” says Muhammad Zaman, Ritchot’s chief financial officer. “Administration established the budget with a strong understanding of its impact on future years and the ability to fund those impacts.”
As of the 2021 census, the RM’s population sits at 7,469, representing just under 2,800 dwellings.
Since 2025 was a provincial property reassessment year, administration took into account the total assessment values in the region in order to determine the municipal mill rate for the next year.
Based on that assessment, Zaman says that the value of Ritchot’s properties has collectively increased by 25 percent since the last assessment year in 2023. This equates to an increase of about $177 million in assessment values.
In order to determine whether a municipal mill rate should go up, down, or stay the same, administration divides the financial needs of the municipality for the coming year by the total portioned assessment values of the region.
In 2025, Ritchot’s municipal mill rate will stay the same as last year at 7.950 percent, while providing greater flexibility in terms of spending thanks to the new assessment.
“The proposed 2025 municipal operating revenue is $17.81 million with no increase to the mill rate,” Zaman says.
Forty-three percent of that revenue comes from municipal taxation, he adds, while the balance is derived from financial reserves and other revenue sources.
Other revenue sources include sales of permits and municipal services, development fees, and government grants.
In terms of municipal operating expenditures, one area that will see a significant increase in budget this year, up by almost 40 percent, is protective services. This category includes fire services and law enforcement.
“[This] is due to a budget for a new building inspector for commercial properties, the proposed hiring of a community services officer, and an animal control officer.”
Likewise, the budget for economic development services is up by 37 percent.
“Economic development is a top priority for municipal leaders,” Zaman says. “[It includes] the process of encouraging business development to boost the local economy by offering tax incentives to motivate and encourage businesses to relocate to the community, resulting in more job opportunities.”
The department of public works is anticipated to be funded by an additional 8 percent, and environmental health services, consisting primarily of waste collection, is up by almost the same amount.
Recreation and cultural services will receive a 10 percent bump which, according to Zaman, is mainly allocated to operating and life-cycle funding for community recreational facilities.
Next on the budget is debenture debt, for which $3 million is being set aside.
“A debenture is a type of business loan and most common form of long-term debt,” Zaman explains. “Municipalities often issue debentures to raise money for… funding capital projects.”
Two current debentures on Ritchot’s books include the Ste. Agathe fire hall and Île-des-Chênes’s community centre. These are set to expire in 2032 and 2038 respectively.
Another $7.2 million has been allocated to capital projects in this year’s budget. These include municipal office expansion costs and incubation space equipment, daycare fencing, and the building’s façade.
Almost $92,000 of that will enhance the equipment needed by protective services, with another $707,000 designated for public works transportation, equipment, and machinery.
Capital projects for the coming year include the construction of a new landfill site, pole shed upgrades, land drainage initiatives in The Grande neighbourhood, as well as street reconstruction of Lagasse Drive and Lagasse Bay North.
A budget of $265,000 will invest in upgrades to parks.
At the end of the day, based on Zaman’s calculations, the RM should find itself with a closing operating reserve of more than $6.8 million.
