FAQs

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 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.

Pickering's 2021 Budget saw the lowest increase in property taxes over the last 20 years. This represents the lowest tax rate among Durham Region Lakeshore municipalities. 

Each year, capital projects related to sidewalks, local roads, bridges and community energy systems are funded in part through this program. Visit pickering.ca/gastax(External link) for more information.

The City regularly collaborates with various local businesses and community groups to deliver innovative projects, infrastructure, programs, events, and services to its diverse population. These partnerships enable the City to enhance its service provision, while remaining fiscally responsible to residents and businesses. 

Casino and naming rights

• Special Provincial Funding – since amalgamation in 1998, the Province has given the City of Toronto millions of dollars in special grants and loans - funding which was not provided to any other municipality in Ontario. 
• Toronto Business Taxes Subsidize Residential Taxes – Toronto has historically taxed their businesses at much higher rates than other municipalities, which allows Toronto to keep residential taxes lower. A commercial business in Toronto pays 3.2 times more in taxes than a homeowner, while in Durham Region that same business only pays 1.5 times more. We offer competitive tax rates as incentive for businesses to start up or relocate here. Essentially Toronto’s huge business base subsidizes the residential property tax base. In 2007, Toronto Council adopted a policy to rebalance this ratio, and committed to seeing that residential property taxes increase more quickly than non-residential rates, over the course of 10 years. 
• Special Taxing Powers – The Province has granted Toronto special taxing powers, such as the Land Transfer Tax, which also allows it to keep its residential property taxes lower. The Toronto Land Transfer Tax is equivalent to a minimum of a 10% property tax decrease. In other words, without this special tax tool, Toronto taxes would have to increase by at least 10% to maintain its current service levels. 
• Every day, thousands of individuals commute to Toronto from the “905” area.  The City of Toronto retains or keeps the property taxes associated with these commercial office towers and the “905” area has the expense of providing the various municipal related residential services such as parks, recreation and libraries.  In other words, Toronto keeps the revenue and the “905” has the cost of providing the residential services. 

Statistics Canada’s Consumer Price Index (CPI) looks at the costs of consumer and household goods such as milk, bread and eggs.   It does not reflect the cost increases that all municipalities face for expenditures such as contracted goods/services, insurance, building materials, asphalt, concrete, etc. Statistics Canada’s Non-Residential Building Construction Cost Index, which the City must use to annually index *development charges, is a more representative measure. In recent years, this index has shown inflationary increases well above CPI.

* Development charges are fees collected from developers at the time a building permit is issued.

The fees help pay for the cost of infrastructure required to provide municipal services to new development. 

Most municipalities in Ontario use development charges to ensure that the cost of providing infrastructure to service new development is not borne by existing residents and businesses in the form of higher property taxes.

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.