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City of Mississauga 2012 Capital and Operating Budgets Approved - No Service Cuts

Feb 08, 2012

At its meeting today, Mississauga City Council approved the City's 2012 Capital and Operating Budgets, focusing on maintaining services and introducing some modest service improvements. As well, the Budget includes an infrastructure levy that will be used to help keep the City's assets in a state of good repair.

"In this budget we preserved existing levels of service, found efficiencies and provided for continued progress in implementing the City's strategic plan," said Janice Baker, City Manager and Chief Administrative Officer.

"Council and staff carefully reviewed each service area to reach a sustainable final budget," said Mayor Hazel McCallion.  "We know our residents value the services we provide and so much of what we do, like snow clearing and fire and emergency services, are essential services that cannot be compromised, even in the face of economic challenges. We are committed to providing good value for our taxpayers."

This Budget will fund $155.6 million in capital infrastructure costs and $599.8 million for services and operations. The 2012 tax levy will total $345.4 million and approximately $254.3 million will be generated through user fees and other revenue.  As part of the budget process, City staff identified $3.4 million in cost savings.  The Operating Budget also includes $4.1 million in new initiatives including transit service expansion and improved street tree maintenance. 

The City Budget, combined with the Region of Peel Budget will result in a 2.8 per cent increase on a residential property tax bill and 1.5 per cent increase on a commercial property tax bill.  For residents, this equals an additional:

  • $113.76 in property taxes on an average home assessed at $430,000, or
  • $26.46 per $100,000 of assessment.

The City's Budget, represents 29 per cent of a resident’s tax bill or 16 per cent of a business' tax bill.  

Mississauga owns approximately $6.7 billion in infrastructure assets, which includes the operation and maintenance of:

  • 6,700 acres of park land
  • 5,209 kilometres of roads
  • 12 community centres
  • 25 ice rinks
  • 18 libraries
  • 49,234 traffic lights 
  • 91 transit routes. 

"The City's infrastructure is generally in good condition but it is aging. The need to provide funds to rehabilitate or replace these assets has been identified over the past several years and this need is growing," Baker said. "For the first time, the City will be taking on debt to fund some capital costs.  We have been planning for this reality for some time.  Our business plan and legacy of strong leadership and excellence in financial planning will allow us to manage debt responsibly and maintain our reputation for fiscal prudence."

Over the past year, Mayor McCallion hosted 7 Budget Town Hall sessions to explain how the funds generated through property taxes are used to fund City and Regional services. 

"The reality is our municipal funding options are limited.  Beyond the property tax, on which the City receives 29 cents for ever dollar paid, user fees, permit and licensing fees are our only other option.  They account for 42 per cent of city revenues and we are ensuring these fees recover costs where we can," Mayor McCallion added.  "We continue to put pressure on the Federal and Provincial governments to provide more financial support to cities in order to alleviate the stress on our budget."

As Canada's sixth largest city, Mississauga is home to 734,000 residents and 55,000 businesses, including 63 Fortune 500 companies with Canadian head offices or major divisional head offices. A diverse, progressive and award-winning municipality located on the shores of Lake Ontario in the heart of the Greater Toronto Area, Mississauga is "Leading Today for Tomorrow" by focussing on delivering services, implementing its Strategic Plan, delivering value for money, maintaining infrastructure.

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Related Links:
   2012 City of Mississauga Budget Fact Sheet


Media Contact:
Laurel Schut
Manager, Corporate Communications (A)
Phone: 905-615-3200 x5832
TTY:    905-896-5151
Email:   laurel.schut@mississauga.ca


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