BUDGET RESOURCES

Operating Budget

The Operating Budget covers day-to-day spending on services such as recreation programs, parks maintenance, public health, roads, transit, and emergency services. Approximately 31 per cent of the Operating Budget comes from property taxes, the rest from provincial grants and subsidies, user fees, reserves and other income such as income from investments.

Capital Budget

The Capital Budget pays for the City’s big-ticket items that it owns and manages, such as infrastructure, transit, roads, bridges, parks and public buildings, including libraries, community centres and fire stations. The 10-year Capital Budget and Plan is updated and presented each year as part of the budget process. The Capital Budget is primarily funded from reserves, development charges, other governments and borrowing. Ontario municipalities may issue long-term debt only for capital and not operating expenses.

Rate-supported Programs

The City also has three rate-supported programs funded almost entirely by user fees: Solid Waste Management, the Toronto Parking Authority and Toronto Water. User fees, based on rate models, pay for all or some of the services and the infrastructure to deliver them. For example, water fees are based on how much water used, and households pay different fees depending on the size of garbage bins they have.

Balancing the Budget

The City is required by provincial law to balance its operating and capital budget each year – which means that the money spent must be equal to the money raised.

To balance the budget, the City can either increase its taxes and fees and/or change or reduce the cost or amount of services provided.

Budget Surpluses and Deficits

When the City spends less or raises more money than it thought it would during a year, it might end up with a surplus. 75 per cent of operating budget surpluses must go to the Capital Budget for infrastructure projects and 25 per cent to top-up reserves. The City has never had a deficit. In other words, the City has never spent more than its revenues.

The Difference Between Gross and Net Costs

The Gross budget is the total cost of running all city programs and services. It’s the large number that includes everything. The Net budget is what’s left after subtracting other funding the City gets from other sources, such as subsidies for cost-shared services and program fees. The Net budget is the part of the budget that gets paid for by taxes and other fees.

Cost-shared Services

Several City services are paid for through agreements between the City and other orders of government. For example, shelters, daycare, emergency medical services, public health and income support programs are funded by both the City and the Province of Ontario.

Reserves

Funds set aside by City Council to save over time to pay for big projects, protect against market changes or handle unexpected costs. These reserve funds can be used for general needs or specific purposes, depending on Council decisions.

The City Budget is about building a great city.

The Budget Committee  will review a staff prepared budget and hear input from Toronto residents and businesses. The Mayor will then present the Mayor’s budget by February 1 and City Council will consider that Budget within 30 days.

Through this process, City Council makes decisions about City services, programs and infrastructure that impact you and your community.

Get involved in the City’s Budget process to share what matters to you.

Previous Budgets