Budget Frequently Asked Questions

Budget documents tell a city's financial story and set spending targets for municipal programs, services and initiatives. The budget is an important element in the accountability cycle and provides a standard against which subsequent performance can be judged.

A Capital Budget and Forecast is where the city plans for upcoming years and identifies how to pay for city infrastructure projects such as road reconstruction, park improvements and public buildings.

The City of Burlington relies on a number of funding sources, some that occur each year and others that are one-time funds.

These funding sources include:

• Transfers from the operating budget
• Transfers from reserve funds
• Senior government transfers such as the federal and provincial gas tax
• Charges levied against developers (development charges) to cover the cost of new infrastructure in growth areas
• Issuing of debt

A capital project is a project that helps maintain or improve a city asset, often called infrastructure. It is a new construction, expansion, renovation, or replacement project for an existing facility or facilities; or purchases of major equipment, or; major maintenance ore rehabilitation project. The project must have a total cost of at least $25,000 over the life of the project. Project costs can include the cost of land, engineering, architectural planning and contract services.

The capital budget process involves consideration of priority capital needs, financing capabilities, council directions, community needs and goals outlined in the city's 25-year Strategic Plan. Along with the input received from community consultation, city staff develops a one-year capital budget and 10-year forecast. This budget is then reviewed by the city's Community and Corporate Services Committee and approved by City Council.

The Operating Budget is where the city plans for its day-to-day operations, including salaries, utilities and supplies to deliver city services.

The operating or current budget is primarily funded from property taxes, though it can also include revenues received from:

• earnings on our investments
• senior government subsidies such as the provincial gas tax
• user fees and charges such as recreation fees, parking fines, business licenses and building permits.

Burlington City Council ultimately decides, based on feedback from community stakeholders - including taxpayers - and recommendations from city staff. Almost all of the city taxes collected go to the operating budget (about 90 per cent). The rest go to the capital budget (about 10 per cent).

The city collects property taxes on behalf of both the Halton Regional government and the school boards. Of your property taxes, approximately 43 per cent funds city services, 36 per cent funds the region and 21 per cent funds the school boards.

City share (43 per cent) pay for municipal services such as:

• Libraries
• Recreation programs
• Fire services
• Public transit
• Parks maintenance
• Snow removal

Halton Region share (36 per cent) pay for regional services such as:

• policing
• public health and ambulance services
• garbage and recycling collection / disposal
• water and wastewater

Education share (21 per cent) is directed to:

• Halton District School Board
• Halton Catholic District School Board
• Conseil scolaire Viamonde (French Public
• Conseil scolaire de district catholique Centre-Sud (French Catholic)

Municipal budgets in Ontario are provincially legislated to be balanced annually. The city cannot budget for a surplus or deficit.

To ensure a municipality's long-term stability and protect against unforeseen circumstances, (snowstorms, flooding, etc.) legislation allows municipalities to allocate surplus funds to reserve funds.

Depending on the stage in your life and your interests, you will use city services differently. Whether we use them or not, we all pay for the many services the city must provide. If you don't drive a car, you still pay for roads. If you don't use our parks, a portion of your taxes are still used for their upkeep. If you do not have school aged children you still pay education taxes.

The Municipal Property Assessment (MPAC) assesses all properties in Ontario. The assessed value is based on valid property sales (arms length transaction from a willing seller to a willing buyer) in your community. This method is called Current Value Assessment (CVA).

MPAC can be reached at 1-866-296-MPAC, ext. 6722.

All properties in Ontario are now being assessed for the taxation years 2017 to 2020 based on property assessment values at Jan. 1, 2016.

The provincial government has mandated that reassessments will occur every four years. In addition, the government has introduced the phasing in of residential assessment increases as part of the reassessment. Decreases in assessment will not be phased in and are effective in the first year.

Example: Property value increases from $200,000 to $240,000 due to the current re-assessment.

A $40,000 assessment increase will be phased in gradually in increments of $10,000 each year over four years as follows:

2017: $210,000

2018: $220,000

2019: $230,000

2020: $240,000

To find out if your assessed value is accurate, simply ask yourself this question - could you have sold your property for its assessed value on Jan. 1, 2016? If the answer to this question is yes, then your assessed value is probably correct.

Yes, you can get detailed information about your property and information on up to 24 additional properties of your choice and up to six selected by MPAC, free of charge. To do so, visit AboutMyProperty at www.mpac.ca and enter your personalized User ID and password included on your Property Assessment Notice, or call 1-866 -296-MPAC, ext. 6722.

You may also send a written request to:

MPAC
Attention: GRAD
P. O. Box 9808
Toronto ONT. M1S 5T9

Fax: 1-866-297-6703

For residential, farm and managed forest property classes you must first file a Request for Reconsideration (RfR) with MPAC by March 31 in a given year. For additional information on how to file, visit MPAC. There is no cost to file an RfR. MPAC will mail the RfR results no later than Sept. 30. If you are not satisfied with MPAC's RfR results, you can file an appeal to the Assessment Review Board (ARB) within 90 days of the mailed RfR response from MPAC. There is a cost to appeal.

For all other property classes you have two options:

File an RfR with MPAC by March 31. There is no cost to file an RfR.

File an appeal to the Assessment Review Board (ARB) by March 31. There is a cost to appeal.

As a general rule, if your percentage increase year over year is larger than the average municipal change (4.5 per cent), you may experience an increase due to the reassessment. If your percentage change is relatively close to the average, you may not experience an assessment related tax increase or decrease. If your percentage change is less than the average, you may experience an assessment related tax decrease.

A simple calculation you can do to see if you have had an assessment related increase is to multiply your interim tax bill by two and compare it to your prior year's total tax bill.

Your tax bill is determined by multiplying your assessment by the tax rates determined by the municipality, region and province (education).