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The budgeting process allows municipalities to prioritize projects, programs and service levels based on anticipated revenue and expenses. In Callander, one of our primary sources for budget planning is our Strategic Plan, which helps guide us to determine what the priorities are each year. More information about our Strategic Plan is available on our Plans and Strategies Page. Typically, a municipality's annual budget routinely consists of 2 components:
Budgets are "forward-looking" documents. They report a municipality's planned revenue and the cost of public services for an annual or multi-year period (Source: Ontario.ca).
For the downloadable PDF about how Reserves and Reserve Funds Work, click here.
Reserve funds are a lot like a savings account for a Municipality. Reserves are typically part of an overall strategy for funding operating programs and projects. These funds help offset unexpected expenses or revenue shortfalls. Reserves and reserve funds are an important tool for a municipality's long-term financial sustainability. Setting money aside for unavoidable events (like floods) and for capital projects (like road repairs) reduces the need for long-term borrowing or imposing sudden tax increases on current or future tax-payers. However, just like a regular savings account, when you take money out of reserves it also needs to be returned at a later time.
Schedule A2 - Reserve and Reserve Funds 2023 - AMENDED
By-law 2023-1806 - To Adopt a Reserve and Reserve Fund Policy
By-law 2023-1806 - Schedule A - Policy 014 - Reserve and Reserve Fund Policy
By-law 2023-1806 - Schedules B and C - Policy 014 - Reserve and Reserve Fund Policy
The Council of the Corporation of the Municipality of Callander adopts two annual budgets by by-law each year: a General Ratepayers’ Budget and a Water & Wastewater Budget.
How will the taxation increase affect me personally?
What are the contributing factors that resulted in a taxation increase?
How do we compare to our neighbouring municipalities?
What am I getting for the added tax dollars?
Why aren't you pulling more money out of reserves?
Will taxation increase similarly in the future?
There are two components to calculating municipal taxes:
If the assessed value goes up, there is less impact on the tax rate. If the assessed value goes down, or remains the same, there may be a need for the tax rate to increase in order to provide the expected level of service.
How will the taxation increase affect me personally?
|
MPAC Assessed Value |
Annual Amount Increase |
Monthly Cost Increase |
|
$100,000 |
$91.60 |
$7.63 |
|
$150,000 |
$137.40 |
$11.45 |
|
$200,000 |
$183.20 |
$15.27 |
|
$250,000 |
$229.00 |
$19.08 |
|
$300,000 |
$274.79 |
$22.90 |
|
$350,000 |
$320.59 |
$26.72 |
|
$400,000 |
$366.39 |
$30.53 |
|
$450,000 |
$412.19 |
$34.35 |
|
$500,000 |
$457.99 |
$38.17 |
|
$550,000 |
$503.79 |
$41.98 |
What are the contributing factors that resulted in a taxation increase?
No assessment increases from MPAC
Cost of Living
Strategic Objectives
Capital Asset Management Plan
How do we compare to our neighbouring municipalities?
What am I getting for the Added Tax Dollars?
Birchgrove Resurfacing
Byers Road Culvert Replacement
Fairway Drive
Osprey Crescent
Truck #4
Hart Road Resurfacing
McDonald Road Resurfacing
Enhancing of Breakwall at Pier
Cemetery Columbarium
Hydraulic RAM
Ninovan Road Resurfacing
Pallet Forks
Waltonian Culverts Replacement
Accessibility Ramp for Main Buidling
Generator for Main Building
Pavillion Furniture & Remainder of Waterfront Project
2022 Carry Over
Accessibility Entrance (Library)
Main Street Engineering
Crosswalk Signage at Schools
Bill Barber Rink Upgrades
There is also:
Why aren’t you pulling more money out of reserves?
Council is pulling out nearly 1.2 million from reserves to assist with capital projects this year, and to reduce the burden on taxpayers. Although nearly $8 million exists in reserves, all of the funds are attributed to various initiatives. There is $1,200,000 that could have been attributed to reducing the tax rate, however with the potential for OPP costs to escalate heavily (by nearly $1.1 million) in 2024, Council is concerned that this would have a significant impact on the residents at that time. Keeping these funds to assist in reducing the tax burden in 2024 or 2025 is essential.
The attributed funds in each reserve and reserve fund after budget approval, along with their description is listed below:
|
Reserve Fund |
Balance at end of 2023 |
|
Equipment & Fleet Operations Reserve (Operations) |
34,225.68 |
|
Equipment & Fleet Operations Reserves (Fire) |
328,954.95 |
|
Information Technology |
0.00 |
|
Infrastructure Reserve |
1,478,251.69 |
|
Infrastructure Reserve (Water/Wastewater) |
1,501,732.45 |
|
Facility Maintenance Reserve |
138,795.89 |
|
Facility Maintenance Reserve (Water/Wastewater) |
35,874.02 |
|
General Parks Reserve |
8,202.84 |
|
Working Funds Reserve (General) |
1,200,000.00 |
|
Water & Wastewater General Reserve |
250,000.00 |
|
Downtown and Waterfront Community Development Reserve |
188,282.10 |
|
Medical Centre Reserve |
17,880.00 |
|
Elections Reserve Fund |
6,500.00 |
|
New Building Reserve Fund |
1,280,500 |
|
Library Building Reserve Fund |
403,603.07 |
|
Parkland Dedication Reserve Fund |
5,000.00 |
|
Development Charges Reserve Fund |
243,611.58 |
|
Community Building Reserve Fund (Gas Tax) |
7,999.81 |
|
Museum Reserve Fund |
23,436.31 |
|
Building Department Operating Reserve Fund |
0.00 |
|
Cemetery Care and Maintenance Fund |
117,641.00 |
Will taxation increase similarly in the future?
Future increases in taxation are unknown at this time, however Council is doing what it can to ensure the rate remains fair and reasonable for its taxpayers. Of major concern is the OPP transition to contracted service in 2024. This is currently an unknown but, if it does occur, it would result in a $1.1 million impact on the budget in one year.
If MPAC does not reassess, and new homes are not being constructed in Callander, there continues to be a push for more tax increases, to compensate for the loss of typical revenue received on an annual basis, especially in a climate where the cost of living continues to increase.
April 15th 2023: Council Establishes Ad-Hoc Budget Committee
March 16th 2023: Press Release: General Ratepayers and Water & Wastewater
February 14th 2023: Staff Presented Council with an Amended Draft Budget
January 12th 2023: Staff Presented Council with a Draft Budget
Financial statements are "backward-looking" documents. They report on the actual resources used by the municipalities and the full cost of the services delivered to the public in that year.
The municipality's financial statements at the end of the year may differ from their original budget for several reasons:
Long-term financial planning considers a municipality's long-term costs and investments over a multi-year period (ex. 10 years) and considers things like:
Just like personal financial planning, it is important to plan for upcoming expenses and save for them gradually, rather than having huge expenses come up all at once (Source: Ontario.ca).
2022 Consolidated Financial Statements
December 31, 2021 Financial Statements - Callander
Report on 2022 Council Honoraria and Planning Committees Expenses
Municipality of Callander Drinking Water System Financial Plan (2020-2026)