The City is responsible for delivering services to residents and for maintaining infrastructure that citizens use every day. The money we receive from things like property taxes is spent on these services and infrastructure, and also saved in reserve for future spending.
The City’s services are organized into different areas. Each year, these areas present their proposed budget and objectives to the Budget Committee for review and approval.
The 2021 budget is allocated in the following ways:
In addition to providing services, the City is responsible for maintaining infrastructure. Infrastructure includes equipment and structures owned by the City and used by everyone.
Infrastructure includes roads, bridges, stormwater drains and sewers, sidewalks, streetlights, traffic signals, community centres, libraries, fire stations, pools, arenas, parks, trails, playground equipment, theatres, buses and bus shelters.
Infrastructure must be maintained in order to avoid excessive future repair costs, put safety first and make sure that Mississauga continues to be a great place to live, play and do business.
In total, the City owns about 60% of the total infrastructure in Mississauga, which is worth about $13.6 billion distributed as follows:
The good news is Mississauga’s infrastructure is in pretty good shape. However, it is taking more money to keep it that way. Here’s how the condition of our roads, bridges and buildings looks:
Reserves and reserve funds are established by Council to assist with long-term financial stability and financial planning in the City.
Reserves and reserve funds are an important element of the City’s financial plan. By maintaining reserves, the City can accumulate funds for future needs or contingent liabilities, a key element of sound long-term financial planning practices.
Reserves and reserve funds provide stability in times of unexpected shifts in revenues and expenditures, provide funding for one-time expenditure requirements, and minimize fluctuations in taxes caused by cyclical conditions.
Credit-rating agencies consider municipalities with higher reserves to be more advanced in their financial planning.
The City maintains operating and capital reserves and reserve funds. See more details of all reserve activity for the City.
The City’s infrastructure is funded from property taxes and other sources like the Canada Community-Building Fund or development charges. The City is facing challenges to fund the maintenance of infrastructure over the coming years due to something called the ‘infrastructure gap’.
The City’s infrastructure is worth $13.6 billion. The City maintains a 2% infrastructure levy each year. The levy helps to ensure there is enough funding available to maintain and replace City infrastructure.
The City uses a combination of this levy and funding from federal and provincial government partners to manage its infrastructure costs.
These funding sources do not completely cover the cost of keeping City infrastructure in a state of good repair. This is what’s known as the infrastructure gap.
In 2021 Council adopted an Asset Management Plan for its core infrastructure. This plan recommended changing the method of calculating the infrastructure gap.
In previous years the infrastructure gap was based on a one year analysis of infrastructure replacement values. Going forward, this will be based on a ten year analysis of actual infrastructure repair and replacement needs.
Over the ten year period, on average, the City is spending $206.6 million annually to maintain and replace its existing assets. Additional funding of approximately $40 to $45 million per year is needed to keep City infrastructure in a state of good repair.
The Asset Management Plan and continuing support from other levels of government will help the City ensure that funds are prioritized to manage the infrastructure gap.
Aging infrastructure and climate change create additional pressure on the City’s stormwater system and budget. The stormwater charge was approved in 2016 as a dedicated funding source to maintain the stormwater system, and to increase the City’s investment in capital improvements.
Due to the COVID-19 pandemic, many City services, facilities and programs were put on hold resulting in a budget deficit. We’re planning our 2021 finances to build a business plan and budget that reflects the needs of the community.