The 2007 Operating Gross Budget is $7.797 billion, which represents a $190.611 million or 2.5% increase over 2006 in gross expenditures. This budget is funded primarily by user fees and charges of $1.205 billion, Provincial and Federal Grants and Subsidies of $1.944 billion and Property Taxes of $3.221 billion with the latter representing 42% of total revenues.
After applying non-tax revenues including provincial and federal subsidies, user fees and reserve draws, the remaining gross operating budget is funded by property taxes (referred to as the net budget). The 2007 Net Operating Budget of $3.221 billion includes an increase of $89 million or 2.8% over the 2006 property tax base.
The 2007 Operating Budget also includes an assessment growth of $16.214 million, and property tax increases of $72.618 million, generated from a 3.8% or $49.114 million increase on residential properties and a 1.267% or $23.504 million increase on commercial, industrial and multi-residential properties.
To deliver services approved by City Council in 2006, the total 2007 budget includes a base budget of $7.746 billion that reflects a gross expenditure increase of $139.343 million or 1.8%, compared to 2006. This confirms that City spending has been contained through continuous improvement and efficiency initiatives.
Balancing the 2007 Operating Budget
The 2007 Operating Base Budget starting pressure was $548 million. The Budget Committee recommended moderate investment in new and enhanced City building initiatives that fulfill Council and the Mayor’s priorities totalling $51.268 million gross expenditures and $14.448 million net. As a result, the budget pressure was increased to $562 million.
