How does the Town of Ponoka fund the operating and capital budgets?

The operating and capital budgets are funded by a number of different sources, including:

Property taxes

• Municipal property taxes are one of the Town’s primary revenue sources and help fund many municipal services residents use every day. 
• Property taxes are collected locally by the Town of Ponoka. However, not all taxes remain with the municipality, as a portion must also be collected on behalf of the Province for education, and on behalf of Rimoka Housing Foundation for seniors housing.

Grants from the federal and provincial governments

• Grants are funding contributions primarily from the provincial or federal government that help municipalities pay for infrastructure projects, community initiatives and municipal services. Some grant funding may be used broadly, while others are dedicated to specific purposes such as roads, utilities, recreation facilities, housing or economic development. Grant funding helps reduce the financial burden on local taxpayers for major projects and investments.

Reserves

• Reserves are funds the Town of Ponoka sets aside over time to help prepare for future infrastructure maintenance, replacement, emergencies or unexpected financial pressures.

Debentures

• Debentures are long-term loans municipalities can use to help fund major infrastructure projects such as roads, utilities, recreation facilities and other large capital projects. In Alberta, municipal debentures are regulated through the Province and allow the cost of major projects to be spread over time instead of being paid entirely in a single year. This helps share infrastructure costs between current and future residents who will benefit from the investment.

Revenue from the Town’s electrical utility

• The Town of Ponoka owns and operates its own electrical utility. Revenue generated through the utility helps support the operation, maintenance and long-term sustainability of the electrical system.

Utility fees

• Utility fees are user-based charges that help fund services such as water, wastewater, sewer and waste management. Unlike property taxes, utility fees are directly tied to the cost of delivering a specific utility service.

Other revenue sources (including recreation user fees, licences, permits and government transfers)

• Additional municipal revenue comes from sources such as recreation user fees and rentals, development permits, business licences and other service charges. These revenues help offset the cost of providing municipal services and programs.