Budget Direction
In 2023, Council approved a two-year operating budget and a four-year capital budget. This resulted in a net tax levy increase of 5.9% and 7.3%, respectively, for 2024 and 2025. In accordance with the Municipal Act, 2001, Council must readopt the budget for 2025.
The process for preparing and adopting a multi-year budget and the requirements for a municipality’s budget are prescribed in the Municipal Act, 2001. Establishing an annual review process is mandatory and is addressed through the Multi-Year Budget Policy.
In addition to the matters required to be addressed by the Municipal Act, 2001, the scope of 2025 budget changes may include, but are not limited to, the following:
- New or Changed Regulation
- New or Changed Council Direction
- Cost or Revenue Driver
On May 22, 2024, Council provided direction to staff for the 2025 operating and 2025-2027 capital budget. Staff will follow these directions to prepare the 2025 Annual Budget Update Report which will be presented to Council in Q4 2024 in order to reconfirm the 2025 budget and deliberate business cases.
2025 Operating Budget
In 2023, Council approved a 2025 operating budget that resulted in a net levy increase of 7.3% over 2024 taxation levels and considered:
- The cost of providing provincially-mandated and cost-shared programs
- The cost of delivering Council-approved service levels
- The cost associated with growth in infrastructure that is operated and maintained by the City
- A capital budget that reflects a level of investment which aligns with the “base scenario” described in the long-term financial plan plus a special capital levy for accelerated road asset renewal equivalent to 1.5% of the net levy in each year of the four year capital plan
- An estimate of assessment growth
As part of the planned September 2025 update, staff will present potential service and budget adjustments that reduce the anticipated 2025 tax levy change to no more than 4.9% over 2024 taxation levels, inclusive of the second year of the four-year 1.5% capital levy approved in 2024.
2025-2027 Capital Budget
Council approved the 2024-2027 Capital Budget, which was developed by staff based on an assessment of the community's highest priority needs consistent with the application of prioritization criteria that considers:
- Financial affordability
- Financial commitments and workload requirements in future periods for multi-year projects
- The impact on operating costs associated with new projects
- The probability and potential consequences of asset failure
- The financial cost and potential service impacts of deferring projects
Water and Wastewater Rates
Council approved the 2024-2025 Business Plan for Water and Wastewater Services that includes:
- The cost of maintaining current approved programs at current service levels based on anticipated production volumes
- The cost associated with legislative changes and requirements
- The cost associated with growth in infrastructure operated and maintained by the City
- A reasonable estimate of water consumption
- A rate increase of 4.8%, consistent with the Water and Wastewater Long-Range Financial Plan approved by the Finance and Administration Committee on June 4, 2019
User Fees
In addition, Council approved staff recommended changes to 2024-2025 user fees for property tax-supported services that reflect:
- The full cost of providing the program or services including capital assets, net of any subsidy approved by Council
- Increased reliance on non-tax revenue
- Development of new fees for municipal services currently funded by the tax levy
Business Case Direction (Service Level Changes)
Staff were directed to present any 2025 service enhancements, changes in services, or new service proposals as business cases for consideration by the Finance and Administration Committee on a case-by-case basis, subject to the following conditions;
- All business cases must be approved by resolution of the Finance and Administration Committee to be incorporated into the 2025 Annual Budget Update Report; and
- Any business case with a value of $100,000 or less be incorporated into the base budget where the Executive Leadership Team supports the change, with a summary of such changes disclosed to the Finance and Administration Committee in the 2025 Annual Budget Update Report.
Service Partner Budget Direction
Council requested that Service Partners (Greater Sudbury Police Services, Nickel District Conservation Authority, Greater Sudbury Public Library Board, Public Health Sudbury & Districts) each follows the same 2025 budget directions approved for the City of Greater Sudbury’s municipal services when preparing their updates for 2025 Budget.