Budget and Finances

Key Capital Projects for 2024

• Continuation of the Trail Development Plan

• Rotary Park upgrades (incl. play structure)

• Reconstruction of:

o Victoria Street

o Ontario Street

o Cardwell Street

• Phase 1 Mill Creek Stabilization

• Water Meter and Billing Upgrade

• Well Treatment - GUDI Upgrade

• Digester Number 2 Refurbishment

• Clarifier 3 Centre Unit

2024 Capital Project Deferrals

Some deferrals were made across the 10-year Capital Plan, which generated over $43M in cost reductions. These deferrals were deemed necessary by staff given the fiscal circumstances of the municipality. These projects would be returned to the 10-year Capital Plan when a long-term sustainable financial plan is in-place. Some of the notable deferrals are noted below:

• SCADA System Upgrades

• Watermain Rehabilitation Program

• Sanitary Sewer Rehabilitation Program

• Road Resurfacing Program Enhancements

• Operations Centre 3-Bay Expansion

• Alder Library Expansion

• Rotary Park Redevelopment

Why are the taxes higher in Orangeville than some of our neighbouring municipalities?

The Town of Orangeville provides a high level of services and breadth of services, including free public transportation, stand-alone library services, policing services, and additional recreation services(ex. smaller program ratios).

The tax-base for the budget is shared between residents and local industry such as businesses, commercial property owners, and industrial operations. Traditionally, Orangeville has been a bedroom community, leading to lower industry presence, placing a higher tax burden on the residential levy.

While the Consumer Price Index (CPI) was at 3.1% when the budget was passed, it is not reflective of breadth of capital and operational expenses incurred by a municipality. The CPI relates to the inflations of costs for food, shelter, household operations, furnishings and equipment, clothing, transportation, and more. 

Municipal expenses, such as steel supplies, asphalt and more, are better reflected within the Non-Residential Building Construction Price Index (NRBCPI), which was at 6.57% for Q3 of 2023.

The Town established budgets that trended below inflation for the past number of years as a method to control the impact on the tax base during the OPP transition. This was only achieved through reliance upon a number of non-sustainable revenue streams (ex.tax stabilization reserve transfers), which have been recalibrated in this years budget (note: Answer #3)

In addition, those budgets resulted in continued growth of the Town’s infrastructure funding gap, as many projects were deferred to future years; that gap needs to be closed. As infrastructure continues to age, funds must be committed to proper maintenance, repair and replacement. This budget has been carefully considered to identify the high-priority projects and defer only those that can be, in order to limit debt loads.

In addition, the savings generated through the OPP transition enabled the Town to begin increasing annual funding dedicated towards infrastructure repair and replacement. Continued growth within the Town’s asset management program will help to identify the appropriate level of annual funding to support long-term infrastructure requirements.

The levy increase of 4.50% or $145 relates only to the Town of Orangeville’s share of property taxes collected. The Town also collects on behalf of County of Dufferin and the various School Boards in the area and both organizations determine their own levy amounts. The Town does not have control over how much the increase will be on their share of property taxes collected from residents. The 4.50% applies only to 61% of your average annual tax bill, not the entire amount (see table below regarding Tax Distribution by Jurisdiction)

The 4.50% increase is the increase to the total levy requirement for the Town. The distribution of taxes will vary based upon assessment and tax ratios. Some residents will see the Orangeville proportion of their tax bill increase by more than 4.50% and some by less than 4.50%, dependent upon their tax class and any in-year changes in assessment value.

The graphics below describe the distribution of the average tax dollar. The first graphic shows the distribution of each tax dollar across the three (3) jurisdictions: Town, County and School Boards. The next graphic outlines distribution of the Town’s proportion of tax revenue across Operating, Capital / Reserves and Debt. The final graphic depicts the distribution of the Town’s proportion of tax revenue by service delivery area.