MD sees $11.7M surplus but major spending still ahead
The Municipal District of Pincher Creek is sitting on an $11.7-million surplus, but the mid-year financial picture comes with a major caveat: much of the municipality’s spending is still to come.
The MD collected $18.3 million in revenue by June 30, already surpassing its full-year budget of $16.7 million, while expenses totalled $6.6 million — less than half of the $14.5 million budgeted for the year.
The result is an $11.7-million gap between revenue and expenses so far this year, according to the municipality’s second-quarter financial summary, accepted by MD council July 14.
But the numbers do not mean the MD has suddenly found itself with an $11.7-million windfall. Property taxes and requisitions account for much of the revenue already received, while several significant expenses are still expected in the second half of the year, including road, gravel and infrastructure work that is seasonal and had not yet started as of June 30.
Taxes drive early revenue
Property taxes and requisitions brought in $17.6 million by the end of June, about $2.9 million more than the $14.7 million budgeted for the full year. Administration noted the Alberta School Foundation Fund requisition is still paid quarterly, which affects the timing of the figures.
Not every revenue line beat expectations. Investment income came in at just $50,592, far short of the $350,000 budgeted — an 85 per cent shortfall. Administration attributed the gap to timing: investment interest is calculated at year-end, not throughout the year, meaning the mid-year figure does not reflect the full amount expected for 2026.
User fees, government operating transfers and licensing revenue also came in under budget at the halfway mark.
Overall, the MD recorded $18.29 million in revenue compared with $17.27 million at the same point in 2025. Expenses were $6.63 million, compared with $13.61 million in the first six months of 2025.
Spending trails budget across departments
On the spending side, the biggest underspend by far was roads, streets, walks and lighting. The MD had spent $2.36 million of its $6.22-million budget by June 30. That left the department about $3.86 million below its annual budget at the halfway point.
Administration said the public works numbers should be viewed in the context of the municipality’s seasonal work schedule.
Contracted services were below budget, but several seasonal activities had not yet started. No major repairs had been required by June 30, while fuel was on budget. Gravel crushing was scheduled for the fall and additional roadwork was still to come.
The MD also noted that gravel, dust control and cold mix work was underway.
Administration spending told a similar story, with $1 million spent against a $2.75-million budget. Legislative, protective services, water supply and several other departments were all well under their halfway targets.
Salaries, wages and benefits — the MD’s single largest expense category — sat at $2.24 million spent against a $5.45-million annual budget, also tracking under 50 per cent.
The MD’s airport operations were also showing a favourable variance. The airport recorded about $28,754 in revenue or reduced expenses against a budgeted deficit of $69,500. Administration attributed the difference to limited repairs being required and lease revenue being received.
Capital funding lagging
Government transfers for capital projects came in at $319,124, compared with a $1.4-million budget — a $1.1-million shortfall.
After accounting for that capital transfer, the municipality’s total excess of revenue over expenses reached just under $12 million by June 30.
A separate internal document, used for budget tracking rather than formal financial reporting, shows a lower mid-year figure of about $10.6 million. That version includes transfers to and from reserves, which are not counted as revenue or expenses under standard accounting rules but are tracked separately for budgeting purposes.
Municipal staff cautioned the two views will not match exactly and are not meant to.
Reserves grow to $20.56 million
While spending remains below budget in several areas, the MD has continued to build its reserves.
The municipality’s restricted surplus accounts had a combined opening balance of about $19.4 million. By June 30, the balance had grown to about $20.56 million after $1.92 million in transfers into reserves and $763,673 transferred out.
The equipment reserve was the largest, ending the quarter at about $5.2 million. The bridge reserve stood at about $3.84 million, while the road infrastructure reserve had about $3.53 million. The water and wastewater infrastructure reserve held about $2.82 million.
The equipment reserve includes planned purchases such as a plow truck, water truck, heavy truck tractor, loader scale, portable welder, rotary cutter and other municipal vehicles and equipment. The budget allocated about $1.42 million toward those purchases, with about $131,713 transferred out of the reserve by June 30.
The bridge reserve also has several projects identified, including the Waldron Flats bridge over Indian Creek, the west-end Maycroft bridge over Ernst Creek and the Connelly Creek bridge.
The road infrastructure reserve includes Pisony Road, Beaver Creek Road and Gladstone Road. About $10,605 had been spent on those projects by June 30 against a combined budget of $145,000.
The water and wastewater infrastructure reserve also has money allocated toward the Oldman Reservoir intake and Lundbreck wastewater main repair. A total of $66,213 had been transferred out of the reserve by the end of June.
The tax rate stabilization reserve saw a $15,000 withdrawal tied to a donation to the Chinook Regional Hospital Foundation.
Infrastructure Spending, Municipal Finances, Municipal Reserves


























