Back to SearchThe operating budget is a plan for the day-to-day operations at the Municipality and includes such things as salaries, utilities, materials and supplies, contracts, long term financing repayments, general maintenance and repairs, etc. These expenses are consistent from year to year and add up to millions of dollars for the Municipality. This would be similar to your daily expenses like groceries, utilities, gas, insurance, etc. that add up over the course of the year and that you can generally estimate.
The operating budget is mostly paid for by tax dollars and user fees, which include charges for such things as recreation programs, water and sewer services, building permits, childcare and library services. Your personal “operating” expenses would likely come from your pay cheque or some other source of money you receive annually.
The capital budget is the annual plan for the purchase and repair of the Municipality’s capital assets, such as infrastructure, lands, buildings, vehicles and equipment, and includes studies needed to support the capital budget for the year. Some examples of capital projects include parks and trail improvements, the development and renovations of community spaces, road projects and bridge and culvert work.
The capital budget varies from year to year depending on the level of asset replacement or repair that is needed. For you, capital assets are things like a car, a boat, a house, a cottage that you must budget for to repair or replace when needed. To fund the capital budget, the Municipality looks at the availability of funding from multiple sources including grants, development charges, reserves, fundraising, long term financing, taxation and other user fees. You would likely use your pay cheque, possibly a loan or mortgage, your savings or some other source of money to fund your assets and repairs however you’d have to consider all options before proceeding, just like the Municipality.
