Budget and Finances

Each year as part of the budget process, the City must seek a balance between the fiscal pressures of tax rate changes and the costs of providing programs, services and facilities.  The budget process is focused on delivering initiatives as determined by City Council as well as maintaining existing service levels and planning for infrastructure renewal.  The budget documents outline the spending targets for the City for the year and the tax rate required.  The budget is an important element in the accountability cycle and provide a standard against which subsequent performance can be judged.

The Finance Department is responsible for the co-ordination and preparation of the annual operating and capital budgets.

• The operating budget provides the necessary resources to deliver programs, provide services and operate facilities to meet the needs of Thorold’s growing community and accommodate inflationary pressures.  The operating budget is funded primarily through property taxes and user fees.

• The capital budget and forecast are a comprehensive financial plan that identifies the capital requirements of growth and maintaining existing infrastructure.  The capital budget is funded through property taxes, reserves, development charges, debt and grants.  The capital budget is used to either build, maintain or rehabilitate assets that will last for more than one year.

• Reserves and reserve funds receive annual contributions from the operating budget to assist with creating a solid financial position to support the City’s future cash requirements.  Maintaining sufficient balances in reserves and reserve funds is a critical component of a municipality’s long-term financial plan as it strengthens its long-term financial sustainability, helps to minimize fluctuations in the tax rates, and provides funding for infrastructure needs.

The City of Thorold's consolidated financial statements reflect the City's balances of assets and liabilities at the end of the fiscal year and the net revenues and expenses for the fiscal year. The consolidated financial statements include the operations of the City, the City's various committees, the Thorold public Library and the Thorold BIA.

The preparation of annual financial statements is required by the Municipal Act, 2001, Section 294.1 which states: “A municipality shall, for each fiscal year, prepare annual financial statements for the municipality in accordance with generally accepted accounting principles for local governments as recommended, from time to time, by the Public Sector Accounting Board of the Chartered Professional Accounts of Canada.”