Understanding the Regional budget

Every year, Niagara Region creates a budget. The budget is a financial plan for how your Regional tax dollars, utility fees and government funding are spent on the programs and services that keep our communities running.

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Learn where your tax dollars go

Where the money comes from

Niagara Region's budget is funded through five main sources.

Your property tax bill comes from your city or town. To make it easier, all the taxes for your city or town, Niagara Region and your school board are combined in one bill. Your city or town collects the payments and sends the Regional portion to Niagara Region.

General tax levy

This is the main source of Regional funding. It pays for most Regional services and programs, including roads, buildings and other infrastructure. Everyone in Niagara pays the same general levy rate because everyone receives the same level of service.

Special tax levies

Separate dedicated funds pay for waste management and Regional transit. Because service levels vary by municipality — not every area gets the same garbage pickup schedule or bus routes — rates vary depending on where you live.

Almost all cities and towns buy treated water from Niagara Region at a wholesale rate and then resell it to residents based on how much they use. Charges also cover the fixed costs of building, maintaining and running the wastewater treatment system.

When Niagara Region sells water to the cities and towns:

  • 25 per cent of the cost is based on average use over the last three years
  • 75 per cent of the cost is based on actual usage

Funding comes from the federal and provincial governments for specific projects and service operations, and from local municipalities for capital work on municipally owned assets.

Grants may come as annual transfers or through application-based programs. Subsidies are similar but are used more often to fund ongoing services. For example, homelessness funding is calculated based on population size. A recovery is a reimbursement for money already spent.

Like a savings account, reserves are funds set aside by Regional Council to plan ahead. They help cover unexpected events, one-time capital projects and long-term funding needs.

Reserves can be built from budget surpluses, proceeds from selling assets like land or buildings, development charges, and special tax levies.

Additional revenue is collected through fees and charges for Regional services and activities, including bus fares, seniors programs, business licensing and inspections.

Learn about:

Where the money goes

How Niagara Region spends money is guided by Council's Strategic Priorities and feedback from residents. Most essential services are paid for through the general levy, including:

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Community Services

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Court Services

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Economic Development

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Niagara Peninsula Conservation Authority

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Niagara Regional Housing

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Niagara Regional Police Service

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Niagara Regional Housing

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Tranportation Services

Waste management and Niagara Transit are funded through special tax levies. Water and wastewater services are covered through your municipal water bill.

How the budget is created

Building the Regional budget takes about a year and involves staff from across all departments, regional agencies, boards and commissions, and Regional Council.

1
Departments and agencies submit their budget requests based on service needs and Council's strategic priorities.
2
The Budget Review Committee of the Whole reviews and deliberates on the proposed budget.
3
Regional Council approves the final budget, setting the tax rates for the coming year.

Budget dictionary

New to budget terminology? These plain-language definitions explain the key terms used in Regional budget documents.

Niagara Region's overall budget has two parts: the operating budget and the capital budget.

Operating budget

Covers the day-to-day costs of delivering Regional programs and services — things like staff wages, utilities and office supplies. Think of it like your monthly household expenses, such as food, your phone and utilities.

Capital budget

Covers big, long-lasting investments like new infrastructure, buildings and equipment. Think of it like buying a home or vehicle — major one-time purchases that last for years.

When reporting Niagara Region's budget, staff give Regional Council the gross budget and the net budget.

Gross budget

The total cost to deliver all Regional programs and services before any outside funding is applied. It includes everything from snow plowing to long-term care to office supplies.

Net budget

What's left after subtracting water and wastewater rates, grants, subsidies and fees. This is the portion paid for by your Regional property taxes.

Think of it like a grocery bill: your gross total is $500, but after $150 in coupons and a $25 gift card, your net amount owing is $325.

The Regional tax base is the total amount of property values in Niagara that can be taxed.

Assessment growth is the total of all changes that happen to the Region's tax base during a year. This includes:

  • Adding new construction
  • Adding major renovations
  • Subtracting demolitions
  • Adding and subtracting property value appeals

At the end of each year, all property value changes are added to or subtracted from the original tax base. The difference between last year's and this year's total is our assessment growth. This growth becomes part of the tax base in the next year and is planned for in the budget.

Assessment growth creates more income for the Region. Changes in assessed property values in a community shift how much property tax each owner pays, but no new money is collected.

Your property's assessment value for calculating taxes is different from its market value if you were buying or selling it.

Market value

What your property would likely sell for — the number you'd see on a real estate listing or news story about average home prices. It changes based on what buyers are willing to pay.

Assessment value

A separate number used to calculate your taxes, set by the Municipal Property Assessment Corporation.

The Municipal Property Assessment Corporation sets the assessment value for about 5.7 million properties in Ontario. They assess values for all property types like homes, apartment buildings, businesses, farms, industrial properties and more.

The Municipal Property Assessment Corporation decides your property's assessment value by looking at the sale prices in your specific market. They also make changes based on:

  • Building area
  • Age
  • Lot size
  • Construction quality
  • Location

The Municipal Property Assessment Corporation's assessment values are important because Niagara Region, local municipalities and school boards use them to calculate property taxes for each property owner or business.

Every four years, the Municipal Property Assessment Corporation reassesses all properties in Ontario based on real estate market changes. These new values are used to update how taxes are divided among property owners.

If your property's assessed value goes up, the new value is phased in over four years to make it easier for you to adjust. If the value goes down, the new value applies right away so you get the full benefit sooner. The Municipal Property Assessment Corporation explains how property reassessments work and how they impact your property taxes.

Due to the pandemic, the Ontario government postponed the 2020 reassessment to the end of 2024. Property taxes in 2025 are based on the property assessment values as of Jan. 1, 2016.

An interim tax levy is a temporary tax installment sent out before the final budget is approved. Since the approval process takes time, your first property tax bill of the year is based on 50 per cent of what you paid the previous year. Your second bill adjusts the total once Council has approved the final budget.