The annual Business Plan & Budget outlines how the City plans to allocate resources to deliver the programs and services residents and businesses rely on every day.
Balancing the Budget
The City is required by provincial law to balance its operating budget each year; simply put, the money raised must balance the money spent. Capital budgets, which fund long-term infrastructure projects like roads, bridges, and facilities, can include debt financing. To balance the operating budget, the City can either:
- Increase its revenue stream through raised property taxes and fees; or
- Manage expenses through adapting or reducing the cost of programs and services
Operating Budget
| How Money is Raised | How Money is Spent |
|---|---|
Money is raised in two streams: Tax rate: funded primarily through property taxes, user fees and reserves User rate: funded primarily from reserve funds and user fees which are intended to make the programs and services self-sustaining. These include parking, water and wastewater. | Money is spent on day-to-day expenses for program and service delivery including: |
Capital Budget
| How Money is Raised | How Money is Spent |
|---|---|
| Money is raised through a combination of property taxes, development charges, debt issuance, grants and reserves. | Money is spent on capital projects designed to create, enhance or restore the service potential of the City’s significant network of assets, which include infrastructure (roads, bridges, buildings etc.), land, equipment and vehicles. |
Annual Budget Drivers
Similar to a personal or household budget, the City’s budget is affected by factors beyond our control that impact the cost of a program or service:
Managing Reserve Funds
The City strengthens its financial foundation by responsibly managing reserve funds. This is the financial cushion to support essential services, respond to emergencies, and invest in future priorities.
In 2024, this commitment to smart financial stewardship generated nearly $50 million in returns, the City's best performance on record. 2024's returns follow nearly $30 million earned in 2023, contributing to a total of approximately $90 million in investment gains over the past four years.
Smart investing allows the City to hold operating budget increases at zero, advance critical infrastructure and community improvements and strengthen the City’s financial position. This is reflected in the strong credit rating by S&P Global.
Did You Know...
Ontario municipalities receive only 9 cents of every tax dollar raised in Ontario, while the Provincial and Federal governments receive 44 cents and 47 cents respectively. In contrast to this, municipalities own 57% of the capital infrastructure, while the Provincial Government owns 41% of Infrastructure and the Federal Government only 2%.
Barrie taxes are very comparable to other municipalities. In fact, they are in the lower end of other major southern Ontario cities. In 2024, S&P Global revised the City of Barrie's outlook to positive and affirmed its ‘AA+’ credit rating.