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.
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!
I always hear about operating and capital budgets, what is the difference between these two?
- Pays for all the day to day activities of the corporation;
- Examples of operating expenses include, salaries and wages, insurance, supplies, fuel, and utilities to name a few.
- Pays for all new big investments or rehabilitation of assets currently under the city’s control
- Examples of capital expenses include, new buses, new roads, and new sewers just to name a few
Where does the City of London get money from and how is it spent?
*Diagrams are available in different formats upon request
How municipal services are funded:
Funding of municipal services primarily based on a combination of local taxation (assessed property value), provincial grants & subsidies, and fees for services (i.e.: permits, licences).
How money is allocated:
Dollar amount based on the average residential tax bill - Municipal portion of property tax $2,410.
What is Assessment Growth?
- Assessment growth results from property taxes that are paid primarily as a result of an expanding City (new homes and businesses).
- These new taxes are paid to receive the same services that existing tax payers receive. Given that there are an increased number of homes and businesses requiring core municipal services, civic departments, boards and commissions have to provide an increased volume of core services.
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 consumed or formally closed.
- Reserves are also amounts carried from year to year, but reserves are set up by resolution of Council and are used mainly as cushions against operating budget contingencies or unforeseen events.