Navigating Engagement on Difficult Budgets

Municipal budgeting is never simple, but when financial plans require substantial increases, the engagement process becomes especially sensitive. That’s especially true in recent years. Post-pandemic inflation, housing affordability crises, cost of living increases, and tariff wars continue to impact peoples’ financial capacity and their perception of economic conditions. The result is that people are on high alert for any further financial bad news.

Those same issues have driven up the cost of running a municipality. Approaching difficult budget conversations with clarity, transparency, and respect, is an opportunity for municipal leaders to strengthen trust and improve public understanding.

Lead with Transparency

When budgets include notable increases, residents expect straight answers. Councils should clearly explain the reasons behind higher costs and avoid jargon. Plain language is the order of the day. Linking increases directly to services and outcomes makes them more understandable. For example: “Road maintenance now costs $1.2 million more than last year due to material and fuel price increases.” Transparency establishes credibility and reduces perceptions that Council is hiding information.

Highlight the Cost Drivers

It is essential to demonstrate that budget pressures originate from identifiable factors, rather than arbitrary decisions. Inflationary impacts on fuel, wages, and materials, as well as regulatory requirements, infrastructure renewal, and service expectations, all contribute. Breaking down these drivers, ideally with charts or simple visuals, helps residents see that Council is responding to very real, and often unavoidable, pressures. This level of detail also reinforces that Council is exercising due diligence and faces the same price pressures residents face.

Frame the Trade-Offs

Difficult budgets inevitably involve trade-offs. Instead of presenting the increases as fait accompli, municipalities can demonstrate the alternatives considered. For instance: “Maintaining current transit service levels requires a 2% tax increase. Reducing service hours could lower this to 1%, but at the expense of access and reliability.” By showing the consequences of different options, Council invites constructive dialogue and illustrates that decisions were not made lightly. A former Mayor once told me, “Contrary to what most people will say, they don’t mind paying higher taxes, as long as they can clearly understand the benefit to them and their community from those increases.”

Maintain a Long-Term Perspective

While the immediate focus is on this year’s increase, it is equally important to show the long-term implications of budget decisions. Deferring infrastructure investment or reducing preventative maintenance may temporarily ease financial pressures, but will create larger costs down the road. Framing budget choices in terms of sustainability, resilience, and intergenerational equity allows residents to see beyond the short-term challenge and understand the value of investing now. If you’ve got an Asset Management Plan, use that data to show the very real cost of deferred maintenance, not hypotheticals.

Demonstrate Fiscal Responsibility

When residents are asked to contribute more, they want assurance that their municipality is managing finances responsibly. Councils should highlight efficiency measures, regional partnerships, and grant funding opportunities pursued to offset costs. Sharing stories of innovation, such as energy-saving initiatives or process improvements, underscores that staff and council are committed to reducing the impact on taxpayers wherever possible.

Listen and Engage Respectfully

Engagement must go beyond simply delivering information. I’ve talked about this before. Residents really do value authentic opportunities to provide input and ask questions. Town halls, online platforms, surveys, and small-group discussions all create channels for dialogue. Even if the budget cannot accommodate every concern, listening carefully and responding respectfully helps strengthen the relationship between council and the community. The key here is to do this as part of a culture of continual engagement. If you only ask folks what they think when difficult decisions are being made, you are training them to associate engagement with bad news.

Finally, close that engagement loop. Show residents the results of your engagement efforts. When you change a budget item or bump an infrastructure investment up because of resident input, tell them! Engagement without that feedback loop looks disingenuous and nothing grows engagement fatigue faster.

Transparent budgeting and authentic engagement are key elements of great governance. If you’d like to know more about how we can help you knit these things together, reach out. craig@strategicsteps.ca