FAQs

A planned itemized summary of money coming into the Municipality and how that money will be spent over a specified period of time.

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 2021;
• Provincial funding level changes, including the Ontario Municipal Partnership Fund(OMPF) Grant

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
• Generally meets 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

• 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.