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Each year The City determines the funds it requires for its operating budget and capital budget. City Council reviews and approves these requirements at separate times.
The City presents a capital budget plan with a 10-year horizon to City Council. The operating budget deals with a one-year period, while capital requirements are estimated over a 10-year timeframe to create a capital forecast. The initiatives included in the first year of the forecast are considered in order to determine the capital budget for that year. For example, if the capital forecast covers the years 2010-2019, the capital budget will only deal with 2010.
What is a capital budget?
The capital budget indicates the funds needed for the first year of the 10-year capital forecast period. It is how we pay for major projects such as reconstructing streets; building and improving public facilities such as recreation facilities, community centres, parks and firehalls; dealing with growth pressures such as new streets; and new initiatives. These costs are similar to adding an addition to your home this year.
What is a capital forecast?
Most of The City’s capital expenditures are planned on a long-term basis to make them more manageable. The estimates that are included in the 10-year capital forecast are placeholder values for the funding that is expected to be required in each of the 10 years. Longer-term planning allows The City to tailor projects to the changing needs of the community and to better manage finances. Our capital forecast is similar to your plan to purchase a new vehicle in two years or start home renovations in three years.
What is the approval process for the capital forecast and budget?
Each year in November or Decembet, City Council reviews the funding requirements expected over the next 10-year forecast period. They consider three options for single or multi-year projects that start in the first year of the 10-year period:
- approve funding, which is a commitment to follow through with the project until it is completed;
- defer the project to another year in the forecast;
- remove the project from the forecast entirely.
Council does not approve funding for projects that begin in the second, third, fourth or fifth year of the forecast.
There are also major construction and renovation projects in the 10-year capital forecast that follow a different approval process guided by The City’s Major Facilities Planning and Construction Template. The capital forecast includes placeholder values for these projects that identify the funding that's expected to be needed in each of the 10 years. City Council recognizes these placeholder values and can choose to remove or defer them. Choosing to leave a template-guided project in the capital forecast does not mean Council has given final approval to the project. Instead, Council provides direction and makes ‘go / no go’ decisions on major construction and renovation projects at specific points in each of the three phases of the template process. This decision may occur throughout the year.
Citizens are invited to attend Council's capital budget meeting to listen to the discussion.
What is an operating budget?
The operating budget shows the day-to-day costs of delivering programs and services for the next year. These costs are similar to your everyday household expenses such as mortgage payments, utilities or groceries.
What is the approval process for the annual operating budget?
City departments present their operating budgets and any new requirements to Council in mid-January. Then Council holds separate meetings at month-end to consider all the requirements and provide direction and approval for operating funding for the rest of the year. All the operating budget meetings are open to the public to attend to learn about the requirements and Council's decisions.
When does The City produce its Annual Report?
The City's fiscal year-end is December 31. The Annual Report is produced in the following months and is scheduled to be released on May 1. We encourage you to review the copies from recent years posted on this page.
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