Budget FAQs

A municipal budget is a plan for how dollars are used, invested, or earned over a given period. It is also a policy and planning document that outlines the Town’s priorities. Decisions made as part of the budget process define the programs and services that contribute to a municipality’s quality of life. Property taxes help fund the budget. Property tax rates are based on the assessed value of a home as conducted by the Municipal Property Assessment Corporation (MPAC).

No, tax and budget impacts are calculated differently. The impact on property tax bills is dependent on a few different factors, including the amount of levies raised by the Region of Halton to pay for their services and similarly, the Province for education taxes. In addition, the municipality must consider the net levy required to deliver its services. 

The Town of Halton Hills collects taxes on behalf of Halton Region, the boards of education, and the municipality. Only 0.51 cents of every tax dollar goes towards the programs and services provided by the Town.

The Town’s budget is made up of two parts – an operating budget and a capital budget.

The operating budget covers the on-going day-to-day expenses of a municipality to cover programs and services to residents. This includes items such as staff salaries, fire services, and community services. 

The capital budget typically includes larger expenditures that result in either a new asset (to address growth demands) or repairs to an existing asset.  Repairs to existing assets are driven by the Town’s Corporate Asset Management Program (CAM), which focuses on preserving the condition of assets and extending their useful lives in the most economical way possible by keeping them in a state of good repair.

The term ‘state of good repair’ refers to keeping assets in good condition or good working order. For the Town, this means investing in its current assets such as facilities, roads, bridges and other infrastructure that the municipality already owns.

A municipality’s Long Range Financial Plan (LRFP) helps determine long-term affordability typically 10 years. The LRFP is updated annually, based on informed assumptions, such as inflationary increases and the timing of development and the associated receipt of development charge fees (Vision Georgetown development expected to commence late 2026). It also permits the Town to plan effectively for financial sustainability, ensuring reserves are sufficient to fund the state of good repair program and manage any unexpected events. This in turn provides guidance for both the annual operating and capital budgets in terms of affordability and net tax levy requirements. 

A user fee is a charge paid by an individual for the use of a public service. User fees are a source of funding that municipalities can implement, outside of property taxes. The Town charges fees for licenses, permits and services such as transit and recreation. In some cases, fees are charged to recover 100% of the cost of delivering a service, or partially, as is the case for Activan. 

Special levies are imposed on property taxpayers when the Town determines a need for dedicated funding.

As of October 31, 2023, the Government of Ontario expanded strong mayor powers to the Town of Halton Hills. Strong mayor powers offer resources to heads of Council to accelerate the implementation of key shared municipal-provincial priorities such as housing, transit, and infrastructure. 

As part of the strong mayor powers, Mayor Lawlor is required to table a Mayor’s budget. As part of the process, the Mayor’s budget is subject to Council amendments, a Mayoral veto and Council override. Mayor Lawlor will table her budget on November 3.

Yes. The municipality has previously borrowed money through the Region of Halton for large capital projects.  The Town benefits from favourable borrowing rates due to the AAA credit rating of Halton Region.

No, by law, municipalities in Ontario are not permitted to run a deficit. They must have a balanced budget and cannot finance operations with debt.

Reserves and reserve funds are monies set aside to be used in the future, beyond the current budget year. The Town of Halton Hills has different types of reserves and reserve funds, some that must be used for specific purposes and others that can be used as needed.

Reserves help keep the Town financially stable by:

• Protecting against unexpected problems or risks
• Planning for ongoing maintenance and replacement costs
• Covering specific debts or obligations
• Evening out expenses that might otherwise cause big budget swings
• Saving for large future projects
• Providing a way to fund things internally without borrowing
• Giving flexibility in managing debt

Giving flexibility in managing debt

The majority of the Town’s funding comes from property taxes. Sources include:

• Property taxes = 74.8%
• Payments in lieu of taxes = 1.7%
• User fees & service charges = 13%
• Recoveries & donations = 1.6%
• Grants and subsidies from other levels of government (restrictions apply) = 0.9%
• Financing  = 3.6%
• Contributions from reserves = 2.6%
• Other = 1.8%

There are several ways to learn more or participate in the budget process including:

• Visiting the Budget 2026 project page on letstalkhaltonhills.ca
• Attending or watching the Town Hall Budget Meeting on November 12, livestreamed at haltonhills.ca
• Watching the Budget Meetings livestreamed on December 1 and 2 at haltonhills.ca
• Delegating at a Budget Meeting by completing a delegation form on the website
• Submitting comments via email to clerks@haltonhills.ca