Sale of Municipal Properties

The Village will be listing a number of surplus properties for sale over the coming month.  We are required to provide you with notice pursuant to the Community Charter when any property is being disposed of.  Notices will be placed on our website here, and the Land Disposition will be posted below, which will include a link to the Realtor's listing.  

Land Disposition - PID 015-965-473 - Reduced September 3, 2025

Exclusive Offer for Land Disposition - PID 016-256-191 and 016-258-177 - June 17, 2025 

Exclusive Offer for Land Disposition - PID 016-256-174 - June 17, 2025

Land Disposition - PID 013-133-225 - June 19, 2025 - SOLD

You can check out the Village's Asset Management webpage here for more information about what is going on in the Village of Nakusp. Additionally, please watch this 4-minute video to learn more about asset management.
 
What is Asset Management - Video

To understand Village reserves and why they are important, we need to start by understanding what they are. 

The Village holds two types of reserves, which include:  

1. Unappropriated Surplus – Funds left over from annual operations that came in under budget.
2. Reserve Funds – Money intentionally collected and set aside for asset management.

Unappropriated Surplus 

Unappropriated Surplus (we call it ‘surplus’) is money that is held in an unrestricted account. This is the remaining amount of money from the previous year because the Village did not spend everything that was budgeted. Holding these funds is a sound financial management practice because:

• Surplus bridges the funding gap between the start of the fiscal year and when revenue is received. The Surplus makes sure money is available to pay expenses before the Village begins to receive revenue from you through taxes and fees. Without the unappropriated Surplus, the Village is forced to borrow short-term funds to keep the Village operating until sufficient revenue arrives. Having this Surplus available avoids the need to pay any associated interest on borrowed money. 
• If a Village department goes over budget, the Village can draw from the Surplus to make up for unexpected expenses or emergency situations/repairs.
• Surplus can be directed into dedicated reserves at the end of each year. Typically, the Surplus is applied to the reserve from which the surplus funds originated. For example, if a water project were completed under budget, the surplus funds would go into the water reserve. 

Reserves

Reserves are like a savings account that can only be used for specific things. Reserves are established by bylaw, and the bylaw says what the funds are used for. Reserves are what we use to pay for capital projects (e.g. new water system) and overall asset management (e.g. replacing a truck). However, in some cases, operating expenses can be paid with the reserve. Ideally, the Village is setting aside enough money to replace infrastructure as it reaches the end of its lifespan. We know when this is because of the Village’s Asset Management Plan. 

What is Considered a Capital Asset?

Capital Assets are infrastructure or equipment (usually over $10,000 in value) that depreciates over time. Examples include:

• Roads, buildings, vehicles
• Equipment (as low as $2,500 for some items)

The Village estimates its total capital assets at $88.6 million (replacement value)

Our Current Reserve Levels

Below is a snapshot of where we are at the end of the previous year; however, the values change as we spend the money on capital projects or capital purchases (these are called capital expenses). Every year, the Village creates a budget with a list of capital expenses. Some projects will draw down a reserve a lot, but in other years, there are no projects scheduled, so the reserve balance increases.

At the end of 2024, our balances are listed in the table below. To learn more about what each reserve fund is for, please see Nakusp Established Reserves.
 

Missing Reserves

There are some noticeable absences on our list of reserves, that’s because they don’t exist. The Village owns several buildings, properties, and equipment with no reserves established and no money set aside. This includes:

• REC Complex (Arena)
• Playground equipment
• EV Charging Stations
• Senior’s Center
• Old Fire Hall
• Kinship building
• Parking lots
• Village-owned vacant properties
• Public washrooms
• Tennis courts and the skate park
• Hot Springs Covered Foot Bridge 
• Village Office

Annual Reserve Contributions

Since the 2010’s the Village has been increasing taxes and fees to place more money in our reserves. We have a lot of catch-up to do, but in the last few years, Council have been taking this seriously. In 2024, we contributed approximately $1,000,000 into our reserves (combined). In 2025, we have budgeted to place $1,020,000 for reserves. Neither number includes Unappropriated Surplus transfers from the annual budget, think of that as a bonus contribution.

What we Should be Contributing to our Reserves

If every property paid $110,000 this year, we would have raised enough money to replace all of our recorded capital assets. However, that is not practical, nor is it necessary. Right now, we don’t need 100% of the value of an asset in a reserve that will reach the end of its useful lifespan in 60 years. Instead, we aim to increase contributions every year to get there eventually. 

The Village has an asset management plan that outlines how much we should contribute each year. Currently, we should be contributing $1.9 million to our reserves annually. However, in 2025, we are only allocating 53% ($1,020,000) of what we need to be placing in reserves. To hit our target, we need to increase our annual contribution to our reserves. 

To get to $1.9 million in annual reserve contributions, we will need to increase taxes and fees. 

📊 Hypothetical consistent increases to reserve contributions:

• 3% increase: Reaches the target in 22 years
• 5% increase: Reaches the target in 14 years
• 7% increase: Reaches the target in 11 years

As you can see, reaching our target will take time, and during that time, we will be facing other pressures, such as inflation, adding new assets, and changes to regulatory requirements.

However, increasing taxes and fees is only one part of the strategy. It is not the only way to deal with our funding shortfall. For information on other ways we can tackle this challenge, see the next article, Keeping the Village Financially Viable.   

The Village has approximately 20 Reserve funds. If you’re curious to know more about our Reserve funds and their balance as of December 31, 2024, check out "Village Reserves - Why They Are Important & What We Have" from the drop-down list.

Reserves funded by property taxes and other fees:

• Equipment Reserve Fund – This reserve is used for larger pieces of equipment, such as vehicles, garbage trucks, loaders, mowers and other equipment broadly used in Village operations.   This is funded by municipal taxes and a portion of garbage bag sales and recycling revenue. 
• Fire Equipment Reserve – For firefighting equipment, including fire trucks.  This is funded through property taxes and a requisition from the RDCK.
• Parkland Acquisition Reserve – This fund is dedicated to purchasing parkland and making improvements to existing parks.  The funds in the reserve come from the sale of parkland or when a developer provides cash value instead of actual parkland within their development.
• Hot Springs and Chalet Reserve – Funding capital improvements and asset replacement in the Hot Springs facility, campground and Chalets.  Funding comes from net revenues generated at this facility, not through taxation. 
• Road Reserve – The purpose of this reserve is to pay for paving and the construction of roads.  Funded by property taxes or the development of land.
• Elections – The Village requires funds on hand to support the next general election or when a mid-term election is called.  This is considered a ‘regular expense’ and not for capital projects.  Funding comes from property taxes.
• Street and Sidewalks Reserve – Funding the rehabilitation and construction of new sidewalks, pathways and amenities such as street lights, bike racks and garbage cans.  Collected as property taxes.
• Stormwater – Funding for the rehabilitation of the Village’s stormwater network and rock pits, most of which are beyond their useful lifespan.  Property taxes are the primary means of funding this reserve. 
• General Reserve – This is a catch-all reserve that can be used for one-time general operating or Capital expenditures.  This is funded by property taxes.

Funded by Utility Fees or exclusively through other non-taxation fees:

• Land Sale Reserve – The funding comes from the sale of municipally owned land and buildings.  It is used to pay off debt on land, for land acquisition, or any capital improvements to land and buildings.
• Sewer Reserve Fund - Utility bills fund this reserve and form a part of the utility bill.  This reserve is for the Village’s Wastewater Treatment system, which includes sewer pipes, a lift station, and a wastewater treatment plant. Related one-time operating expenses can also be funded through this reserve.
• Water Reserve Fund - Utility bills fund this reserve and form a part of the utility bill.  This reserve is for the Village’s entire potable water system.  This includes wells, pumps, reservoirs, water treatment plants, pipes, valves, and other related equipment.  Related one-time operating expenses can also be funded through this reserve.
• Cemetery Reserve Fund – The Village owns several cemeteries.  The fees collected through interments are held in this reserve and are to be used for both asset management and regular operating expenses. 
• Centennial Building Reserve Fund – The Village has budgeted to create this reserve at the end of 2025, and it will be the net revenue received as rent.  The reserve pays for capital improvements to the building.  Renters are required to apply for grants to help fund capital upgrades.
• Campground Reserve Fund – Campground net revenues are allocated to this fund.  The Village will use this funding to upgrade/expand the facility.  Regular ongoing operating expenses can be paid through this reserve if the campground cannot cover its costs in a particular year. 
• Emergency Services Building – A new reserve we are establishing at the end of 2025.  Funding comes through rent paid by the Fire Department, BC Ambulance, and Search and Rescue.  Building maintenance and capital improvements are funded through this reserve.
• Memorial Benches – This reserve is funded by people who sponsor benches on Broadway in memory of their loved ones.  The money will be used for bench maintenance and repairs, which include operating and capital expenses. 
• Breakwater Reserve – A reserve set up for capital expenditures on the Nakusp marina. Funding comes from the net revenues gathered from boat moorings.   The reserve funds operating costs (maintenance) and the rehabilitation of the marina.

Reserves Funded by Other Agencies and Governments:

Reserves funded by other forms of government can help offset what the Village needs to have in the Reserves.  Administration always looks for ways to use these funds to tackle projects scheduled for replacement or renewal in the Village’s Asset Management plan.

• Growing Communities Reserve:  A reserve tied to the Growing Communities Fund (grant received from the province).  Projects must help achieve higher housing density.
• LGCAP Reserve: This is a transfer (grant) from the province that must be used towards green initiatives aimed at reducing the Village's carbon emissions and lowering energy consumption.
• Community Works Gas Tax Reserve: This is a transfer from senior levels of government.  The funds must be used on transportation infrastructure, waste management, community energy or broadband communication systems.  It can be used for asset management studies, recreation complexes, tourism facilities, and community brownfield redevelopment.
• NACFOR Legacy Fund – This is the accumulation of dividends provided by the Village-owned company, NACFOR.  Projects must be for the benefit of residents of the Village and area, but not for routine operational or capital expenditures.  25% of the funds must be allocated to projects benefiting residents from Arrow Park South to Edgewood. 

Keeping the Village Financially Viable.

Unfortunately, every taxpayer is required to make up for past oversights.  Over the past decades, we have not saved money to fix or replace our infrastructure. We need to focus on saving money to do this, and we also need to seek ways to reduce how much we need to save. This is the only way to maintain service levels you enjoy and keep property taxes manageable. 

Just like in your household, there are several ways to increase the amount of money you have:

1. Increase your revenue. Getting a new job that pays more, working more hours, or investing are all examples of increasing your revenue. In terms of a Village, we invest (conservatively), but our primary means to make more money include: 
   
   a) Increasing our tax base (more development);
   b) Increasing taxes and fees; and, 
   c) Find new business ventures to make money. NACFOR and the Hot Springs are examples. The other way is to tax you more. 

No one wants to tax you more than is necessary. This is the least desirable way to increase Village revenue and is really only used when no other option is desirable or possible.

2. Gifts and Inheritance. Sometimes in life, you are given money unexpectedly, whether a birthday gift or, if you’re really lucky, an inheritance from that long-lost family member.  For the Village, we sometimes receive donations from benevolent individuals, but more often, they come in the form of grants from other government agencies or organizations.  Grants are very important, but also unreliable.  They often come with ‘strings attached’, and we are always competing with other local governments when we apply.  However, we need to pursue grants when they are available, and only when they align with our identified priorities in the asset management plan. However, beware of what you apply for. It is important not to receive grants for things we don’t need.  This only increases the number of assets we have and the amount we need to place in reserves.
    
3. Reduce your costs.  If your expenses are more than what you earn, you are going into debt.  Luckily, a local government in BC is not allowed to budget for a deficit.  Citizens need to think about the cost of new services or when asking for higher service standards.  For example, do you want the Village to clear your sidewalk of snow rather than doing it yourself?  If so, that requires taxes to increase for everyone to meet this higher standard of service.  Compared to other communities, this Village operates relatively lean, in an effort to keep your taxes and fees low.  Taxes in this community are well below the provincial average.  However, this does not reduce the need to increase funding to our reserves.  Over time, increasing reverse contributions is a necessity. Otherwise, you run the risk of a catastrophic failure requiring an enormous budget increase in a short span of time, like what happened in Osoyoos in one year.
    
4. Sell off Assets you don’t need or can’t afford.  Have you ever heard the saying, ‘The more you own, the more it owns you’?  This is the same for the Village.  Having too many assets means we need to set aside more money for asset management.  Furthermore, it takes up a significant amount of staff time to maintain and administer the assets.  The prudent approach is to take a hard look at what assets we have and eliminate what we don’t need.  This means sharing vehicles for staff, amalgamating departments to share equipment resources, and selling off underutilized properties.  The REC Complex is a cherished facility that has a lot of room for additional use.  It makes sense to invite user groups in other Village-owned buildings to move into the REC Complex to both increase its use and reduce village expenses by selling the other, underutilized building.  This generates revenue through the sale of the asset, as well as additional property taxes, and eliminates the need to set aside more money in a reserve for an asset that is sold. 

Council is looking at all of the above options.

Costs are rising across society; this is unavoidable for the Village, too.  Village Council does not want to utilize property taxes as the primary means to fund our insufficient reserves.  High taxes only serve to make the Village a less affordable place to live.  Council is looking at all the above options to reduce the pressure of increasing taxes.  Council is taking an important step by deciding to sell some of its properties.  This supports a wide range of Council’s strategic priorities that focus on keeping your village operating and financially viable.