FAQ

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 City’s priorities. Decisions made during budget development help determine funding for the programs and services that maintain residents' quality of life.

As a result of the newly legislated Strong Mayor Powers, Section 284.16 of the Municipal Act, 2001, outlines a statutory process for the approval of municipal budgets, beginning with the preparation of the Mayor’s proposed budget. After receiving the proposed budget from the Mayor, Council can amend it by putting forward and passing a resolution within a specified window of time. Opportunities for the Mayor to veto any amendments and for Council to oppose any mayoral veto are also built into the Act and our process.

Budgeting allows municipalities to prioritize projects, programs and service levels based on anticipated revenue and expenses. A municipality’s annual budget routinely consists of 2 components:

1. Operating budget plans for day-to-day expenditures such as:
   • benefits
   • heat and hydro
   • infrastructure
   • salaries and wages
   • maintenance of buildings
2. Capital budget plans for the purchase, financing of assets or improvement of existing infrastructure such as:
   • storm sewers
   • parks and roads
   • recreation centers

The mayor, members of Council, and staff are involved in the budget process. The CAO, CFO, directors, and divisional managers prepare their departmental budgets, which are then shared with the mayor and members of Council.

A user fee is a charge an individual pays to use a public service. The tax levy supplements the user fee. User fees include recreation services, like swimming lessons and the arena.

Engage Welland is the City of Welland’s community engagement platform. It allows residents to complete surveys and share their ideas and comments regarding the budget process.

Ontario legislation states that municipalities must have a balanced budget. Under the legislation, municipalities cannot finance operations with debt. In addition, Ontario Municipalities are not permitted to run a deficit.

The city maintains accountability and transparency through the budget process as follows.

City meetings are accessible to the Public.

• The mayor’s budgets are available on the city’s website.
• Variance reporting is completed every quarter.
• Consolidated financial statements are prepared on an annual basis.
• Financial Information returns (FIRs) are completed annually and submitted to the Province. They are a legislatively required data collection tool for collecting financial and statistical information to compare across municipalities.
• The City’s budgets work in conjunction with the council-approved Strategic Plan.

Reserve and reserve funds act as a savings account where funds are set aside for future needs.

The City’s reserves can be broken down into two categories:

• Discretionary: Discretionary reserves are based on Council direction and are used to finance future expenditures designated by Council. They are comprised of the tax-supported and rate-supported reserves.
  
  
• Obligatory: Obligatory reserves are funds the province requires to be segregated for a specific purpose. They comprise development charge reserves, Canada Community Building fund reserves, parkland dedication reserves and building permit reserves.

Governed by the Municipal Act, the City can invest surplus funds not immediately required for its purposes in short & long-term investments. For example, the City invests money in the reserves fund until it is required for future obligations.

https://www.welland.ca/Finance/taxes.asp

The City of Welland and Niagara Region each set their part of the tax rate, while the Province of Ontario sets the education tax rate. Together, these taxes help fund services in Welland, the Niagara Region, and schools across the province.