Budgets

The capital budget is used for long term investments like infrastructure and facilities, that are paid off over time. This includes projects related to roads, bridges and sidewalks, vehicles and equipment, streetlights, playgrounds and trails. It includes new infrastructure projects as well as the maintenance and rehabilitation of existing infrastructure.

The Current Budget, also known as an Operating Budget, covers the day-to-day expenses required to deliver services to residents. These costs can return year-after-year and include services such as roads, parks, and sport field maintenance, staffing and utilities for City facilities like libraries and community centres, and fire services. Most of the funds for the current budget are raised through property taxes and the remainder comes from a variety of sources like user and permit fees and licences. This budget is prepared by each Municipal department and reflects that area of responsibility.

The Mayor has special powers and duties under Part VI.1 of the Municipal Act, 2001 S.O. 2001, c. 25 and in accordance with O. Reg. 530/22 and O. Reg. 580/22. Part of these special powers includes the ability to prepare and propose the City’s budget, subject to possible Council amendments, and the Mayor’s ability to veto such amendments, which are subject to an override process that may be accomplished by two-thirds of the Council. As such, Mayor Ashe has provided Direction to the Chief Administrative Officer (CAO) and the Director, Finance & Treasurer pertaining to the 2024 City of Pickering Budget. View Direction 01-2023.

Legislative framework governing the Mayor’s special powers and duties under Part VI.1 of the Municipal Act, 2001 S.O. 2001, c. 25

Under O. Reg. 530/22, the Mayor is required to propose the budget by February 1st. After the Mayor proposes the budget, Council can pass resolutions to amend the budget within 30 days. The Mayor may veto a Council budget resolution within 10 days after the expiry of the amendment time frame. Council may then attempt to override a mayoral veto with a two-thirds majority vote, within 15 days after the expiry of the Mayor’s veto time frame (under the legislation these time frames may be shortened). At the end of this process, the resulting budget is “deemed” to be adopted by the municipality. Learn more.

See Schedule A (page 40) of the Procedure By-law for excerpts from the Municipal Act (the “Act”), pertaining to the exercise of the Special Powers and duties provided to the Mayor as the Head of Council for the City of Pickering. The provisions that follow are provided to inform Council and the public on the process to be carried out when the Special Powers are utilized. These Special Powers, commonly referred to as “Strong Mayor Powers”, are exercised under provincial legislation and take precedence over the normal rules of procedure outlined in this By-law, where applicable.

The Province of Ontario introduced Bill 23 in an effort to get more homes built faster.

Bill 23 amends the Development Charges Act by freezing, reducing, and exempting fees typically levied by municipalities and other authorities to help pay for the cost of growth.

Through this process, they have shifted some of the cost of growth from developers to municipalities. In 2023, the City lost $3,738,095 of DC revenues, and at this time, the preliminary estimate for the 2024 DC loss is approximately $2.5 million.

This shortfall can result in slower development of growth-related infrastructure, reduction in service levels, an increase in property taxes for taxpayers, or a combination of all three for many municipalities.

Simply put, unless offset with replacement funding, Bill 23 will significantly impact our ability to fund growth and the infrastructure needed to support our growing community.

The City is proposing to use casino revenues to make up the 2023 development charge shortfall from Bill 23.

What are Development Charges?

Development charges are fees paid by developers to help pay for growth-related costs like roads, transit, water and sewer infrastructure, parks and community/recreational facilities.