Can a multi-year budget be changed?
Yes. There is an annual budget update process that must happen each year, which is required under the Municipal Act, 2001.
Council must readopt the budget annually for each year to which the multi-year budget applies.
During the annual budget update, Council can adjust the budget as needed or make changes that are required to make the budget compliant with the Municipal Act.
Council can do this through three types of budget amendments:
- New or Changed Regulation – The organization must address a new or changed legislation or regulation that has a financial impact to the municipality.
- New Council Direction – Council has provided a new direction after the multi-year budget was approved.
- Cost or Revenue Driver – There is a corporate or service area budget shortfall due to changes in economic conditions.