Section 290(1) of the Municipal Act requires local municipalities in each year to prepare and adopt a budget. The Municipality currently prepares three budgets:

1. Capital Budget,
2. Operating Budget; and
3. 10-Year Capital Plan

The purpose of preparing budgets is to allow Council to develop policy in financial terms and to assist in setting priorities and establishing service levels for the upcoming year before expenditures take place.

Municipal Budgets, including the 2020 Operating Budget and 2020 Capital Budgets are available for review on the Municipal Website under ‘Budgets’

The information within the same demonstrates how funds have been allocated to municipal projects in both the Operating and Capital Budgets.

The 2020 Budgets showcase, for forecasting purposes the 2021 Operating Budgets and the 2021-2030 Capital Budget.  These forecasted budgets are subject to changes based on project criteria and decisions of Council, however the forecasted budgets gives the community a starting place for comments on the budgets.

Each year Council must consider impacts on the base budget. These budget drivers may include, but are not limited to:

• Annualization of previous years initiatives;
• General inflation;
• Foreign exchange fluctuations;
• Utility cost increases;
• Impact of fluctuating fuel costs and costs of petroleum based products;
• increased transfers to Reserves and Reserve Funds to fund capital programs based on 10 year capital budget from 2020;
• Provincial funding level changes, including the Ontario Municipal Partnership Fund  (OMPF) Grant

What exactly is a budget?

A planned itemized summary of money coming into the Municipality and how that money will be spent over a specified period of time. Watch this short video to learn more.

Did you know?

Provincial Government (Ontario) legislates that money coming into a municipality must equal money going out.  This is also known as a balanced budget!

What is the difference between Capital & Operating Budgets?

Operating Budget:

• Pays for all the day to day activities of the Corporation;
• Examples:
• Regular maintenance activities prescribed by the manufacturer that would normally be required to ensure that the asset is able to provide service at a level and quality as originally intended (i.e. lubrication of motor and compressors, replacement of filters) or as required by the product warranty.
• Routine maintenance and expenditures, such as repainting, cleaning and replacing minor parts.
• Utilities, insurance and administrative expenses

Capital budget:

• Pays for all new big investments or rehabilitation of assets currently under the Municipality’s control
• Five Thousand dollars ($5,000) or greater and meets one of the following criteria:
• the replacement or overhaul of an asset or major component that will extend the useful life of the asset;
• the expenditure results in an increase in the service quality of the asset
• the expenditure results in an increase in the capacity of the asset; and
• the efficiency of the asset is increased or associated operating costs are lowered – such as replacing existing lighting with energy saving lighting or replacing a furnace with a high efficiency furnace thereby decreasing future operating costs

What are Reserves & Reserve Funds?

• A Reserve Fund is an amount set aside for a specific purpose by authority of a by-law (or as required by legislation) that is carried from year to year unless utilized or formally closed.
• Reserves are also amounts carried from year to year, but reserves are set up by resolution of Council and are utilized mainly as a plan against budget contingencies, large item procurement or unforeseen events.

For additional Municipal Property Assessment Corporation (MPAC) information please refer to the MPAC website.

For additional information on Tax Rates please refer to the ‘Tax Rates’ portion of the Municipal Website.

For additional information on understanding you tax bill, please refer to the ‘Property Tax Information’ and the 'How To Understand Your Tax Bill' portions of the Municipal Website.