FAQs

In general, the budget is divided into two separate but related components: operating and capital.

The operating budget, as the name suggests, covers the day-to-day operation of each of the City’s departments, which include:

• Mayor/Council/CAO’s office
• Human Resources
• Corporate Services (shared services)
• Infrastructure and Development Services
• Building and Planning Services
• Community Services
• Fire
• Social Services

Salaries and wages, snow removal, transit service, parks maintenance, emergency services, and waste/recycling collection are all examples of operating expenses.

The capital program deals more specifically with the City’s tangible assets, managed by each department. Capital assets include things like infrastructure (roads, bridges, sidewalks, buildings, sewers, etc.) as well as vehicles, machinery and equipment.

The capital program covers the purchase, maintenance, improvement or replacement of those capital assets.

So the cost of rebuilding Albert Street, for example, would fall under the capital program. The cost associated with plowing, sanding and salting that road in the winter would be considered an operating expense.

Funding for municipal programs and services and capital assets comes from a variety of sources, the primary one being property taxes. 

Revenue from user fees, government grants and contributions from other municipalities with whom we share services also help to cover cost of running the City of Stratford.

Once the budget is finalized, the City determines the net tax levy for that year, which is the amount of money required of taxpayers to cover the cost of providing all of the programs and services the City of Stratford offers its residents. That amount is collected through property taxes, which are calculated by multiplying the City’s tax rate for each property class by the current value assessment of your property (as determined by the Municipal Property Assessment Corporation - MPAC). 

There is also a separate education tax rate, which is set by the Province of Ontario. The City collects education taxes on behalf of the Province, and distributes them to the local school boards. The total tax bill blends the municipal and education amounts. 

There are multiple factors that affect the City’s budget and tax levy each year, and have an impact on both the revenues we collect, and the expenses we pay. 

Inflation is a big factor, but others include fluctuating energy rates, aging infrastructure that requires rehabilitation or replacement, and in some cases, increased service levels.