No Write-Off for Didsbury’s Defunct Child-Care Debt

Key Points

• The Didsbury Out of School Care Association (DOSCA)’s 2025 year-end deficit of $42,487.04 will be transferred to an internal loan on the Town of Didsbury’s books.
• This decision was made during the Town of Didsbury council’s recent, regularly-scheduled council meeting.
• Council declined a second motion that would have written off the entire DOSCA internal loan balance of $88,727.13.
• DOSCA, a former municipal department, provided before and after school care, professional development day child care for school-aged children, and a summer day camp program.
• The program operated from the early 2000s until terminated by council motion on May 27, 2025, with the 2025 summer program ending on August 29, 2025.
• DOSCA aimed to impose no burden on taxpayers, with revenues intended to meet or exceed expenditures.
• Surpluses were returned to the DOSCA reserve per reserve policy; deficits were funded from reserves or via internal municipal loans.
• Post-COVID-19, DOSCA recorded losses: $22,183.16 in 2023, $24,056.93 in 2024, and $42,487.04 in 2025, accumulating the $88,727.13 loan.
• A private child-care provider’s 2025 summer program reduced DOSCA’s registrants from a pre-2025 average of 35-45 per day to 15-24 per day.
• Administration reviewed a standalone 2026 summer camp but deemed it unfeasible due to duplicated services and unmet community need.
• Chief Administrative Officer Michael Simpson recommended writing off the loan, noting no feasible repayment options and a cash flow loss of $88,727.13.
• Council opted to keep the loan on books for future administrations’ awareness instead of writing it off.
• Mayor Chris Little emphasised measured government involvement, accountability to taxpayers, and avoiding repeated $90,000 write-offs.

Didsbury (Manchester Mirror) January 30, 2026 – The Town of Didsbury council has refused to write off an $88,727.13 internal loan owed by the now-defunct Didsbury Out of School Care Association (DOSCA), transferring its 2025 deficit of $42,487.04 to the municipality’s books during a recent meeting. This decision prioritises fiscal accountability over debt forgiveness for the municipally-run child-care program, which was terminated last year amid mounting losses. The move underscores ongoing debates about taxpayer burdens from former public services.

What Is DOSCA and Why Was It Terminated?

DOSCA operated as a department of the Town of Didsbury from the early 2000s, delivering before and after school care, professional development day child care for school-aged children, and a summer program featuring day camps. The program was terminated by council motion on May 27, 2025, with the 2025 summer program concluding on August 29, 2025.

As outlined in municipal records, DOSCA was designed with no taxpayer burden in mind. Revenues were expected to meet or exceed expenditures, with year-end surpluses returned to a dedicated DOSCA reserve under the reserve policy. Deficits, when they arose, were covered from reserves or through internal loans from the municipality.

What Financial Losses Led to the Internal Loan?

The program enjoyed surpluses for many years until post-COVID-19 challenges triggered consistent deficits. Losses amounted to $22,183.16 in 2023, $24,056.93 in 2024, and $42,487.04 in 2025, culminating in the total internal loan balance of $88,727.13.

In a briefing note to council, the municipality’s Chief Administrative Officer Michael Simpson explained: “DOSCA was intended to have no burden on the taxpayers and, therefore, the revenues brought in were intended to meet or exceed the expenditures to run the department.” He added: “At year-end, all revenues and costs were compiled and any surplus was returned to the DOSCA reserve in accordance with the reserve policy. If the department experienced a shortfall, the deficit was funded from the reserve, or borrowed from the municipality by way of an internal loan.”​

Regarding the accumulated debt, Simpson noted: “Given that there are no feasible options for repayment, administration is seeking approval to write off the internal loan balance. The implication of this is that the cash flow equivalent of $88,727.13 will not be recuperated.”

Why Did DOSCA’s Summer Program Fail in 2025?

Prior to 2025, DOSCA’s Summer Fun program averaged 35-45 attendees per day. However, in 2025, a private child-care provider launched a competing summer program, drastically cutting DOSCA’s registrations to 15-24 children per day. This duplication of services within the small community eroded viability.

Administration’s post-termination review considered a standalone summer camp for 2026 and beyond. Yet, as Simpson detailed in the briefing: “The Summer Fun program, as well as DOSCA, were developed to meet the need within the community and this need no longer exists. As such, it is administration’s opinion that a standalone summer camp is no longer feasible.” The shift reflects evolving community demands no longer warranting municipal involvement.

What Was Council’s Decision on the Loan Write-Off?

During the recent regularly-scheduled council meeting, members approved transferring DOSCA’s 2025 year-end deficit of $42,487.04 to an internal loan on the Town of Didsbury’s books. A second motion to fully write off the $88,727.13 balance was not pursued.

This choice ensures the debt remains visible for future councils, promoting transparency. By declining the write-off, the municipality avoids an immediate cash flow hit while signalling fiscal prudence.

Why Did Council Reject Writing Off the Debt?

Mayor Chris Little articulated the council’s stance, cautioning against hasty government ventures. He stated:

“Governments can be involved in these things (such as DOSCA) but they have to be done in a very measured and well thought-out approach. I know everyone does their best job and hindsight is 20/20 so I won’t criticize, but we have people to answer to. So writing off almost $90,000 is something we don’t want to have to do twice.”

Little’s comments highlight accountability to Didsbury taxpayers, who expect measured use of public funds. The decision preserves the loan as a lesson for prospective municipal programs.

What Are the Implications for Didsbury Taxpayers?

Retaining the loan on the books imposes no immediate tax hike, as it represents an internal accounting transfer rather than new expenditure. However, it commits future budgets to accountability for past shortfalls, potentially influencing reserve allocations.

Taxpayers benefit from the council’s refusal to erase the debt outright, reinforcing that municipally-run services must remain self-sustaining. This aligns with DOSCA’s original no-burden mandate, even in retrospect.

Could a New Summer Camp Still Happen?

Administration’s assessment rules out a 2026 standalone camp due to market saturation. With private options filling the gap and registrations halved, demand has evidently waned. Council heard no viable path forward, closing the door on revival.

This outcome frees municipal resources for other priorities, though it leaves a gap for families seeking affordable options—now largely met privately.

How Does This Reflect Broader Municipal Finance Practices?

The handling of DOSCA’s loan exemplifies prudent stewardship. By logging the debt internally, Didsbury ensures continuity for incoming administrations, avoiding hidden liabilities. Simpson’s briefing underscores standard practices: surpluses to reserves, deficits via loans—until termination.

Mayor Little’s measured tone avoids blame while prioritising taxpayers, a model for small-town governance amid post-pandemic recoveries.

Background on Didsbury’s Governance Context

Didsbury, a modest Alberta town, relies on careful budgeting for services like child care. DOSCA’s two-decade run served families until external competition and pandemic effects intervened. Termination in May 2025 marked a pivot from direct provision.

The council’s recent meeting reflects routine oversight, balancing compassion for past efforts with fiscal reality.