FAQs
- Discretionary: Discretionary reserves are based on direction from Council and are used to finance future expenditures designated by Council. They are comprised of the tax-supported and rate-supported reserves.
- Obligatory: Obligatory reserves are funds the province requires to be segregated for a specific purpose. They comprise development charge reserves, parkland dedication reserves, and building permit reserves.
What's a municipal budget?
A municipal budget is a plan for how dollars are used, invested, or earned over a given period. It's also a policy and planning document that outlines the County’s priorities. Decisions made during budget development help determine funding for the programs and services that maintain residents' quality of life.
How is the municipality spending my tax dollars?
Your tax dollars support the delivery of a wide range of public services and programs. That includes everything from public safety (policing, by-law enforcement, provincial offences administration) to transportation services like road and sidewalk maintenance and snow plowing.
Your tax dollars also support recreation services and facilities, waste management services, long-term care services, and planning and development. A portion of your tax dollars are also directed to external agencies and boards that in turn deliver health and social services, library services, and conservation services for Prince Edward County.
The municipality has prepared an overview of the 2025 budget to help you understand how tax dollars and other revenue is spent. Click here to view INSERT LINK WHEN READY
Are my tax dollars being properly managed?
County of Prince Edward staff maintain a system of internal controls to ensure assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements.
Consolidated financial statements reflect the municipality’s assets, liabilities, revenues and expenses. As required by the Municipal Act, financial statements are prepared annually by staff and are audited by an external auditor for the municipality in accordance with generally accepted accounting principles for local governments. The Audit Committee meets with management and the external auditor to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements.
How does the budget process work?
The Strong Mayor Powers, Section 284.16 of the Municipal Act, 2001 outlines a statutory process for the approval of municipal budgets, beginning with the preparation of the Mayor’s proposed budget. The Mayor cannot delegate responsibility for presenting the annual budget. However, in a statement, Mayor Ferguson has indicated his expectation that the budget process will continue to be a collaborative endeavour between staff and all of Council.
Staff will post the proposed 2026 budget for Council review and public feedback in November 2025. A Council meeting and two Council-staff workshops will take place in early December to discuss the budget. Based on that feedback, staff will revise the budget that the Mayor will present at a Council meeting in early January 2026.
After receiving the proposed budget from the Mayor, Council can amend it by putting forward and passing a resolution within a specified window of time. Opportunities for the Mayor to veto any amendments and for Council to oppose any mayoral veto are also built into the Act and our process.
What's involved in planning a municipal budget?
Budgeting allows municipalities to prioritize projects, programs, and service levels based on anticipated revenue and expenses. A municipality’s annual budget routinely consists of two components -- operating budget and capital budget:
The operating budget details what the municipality will spend on programs and services during a given year and where the money will come from to pay to deliver those programs and services. Under provincial legislation, the municipalities cannot run into a deficit, so all money spent on services in a given year must have a revenue source.
The capital budget outlines the municipality's plan for funding the snowplows, fire trucks, vehicles, roads, buildings, and other infrastructure that support the delivery of programs and services.
Asset Management Plans, which are required by the province, provide municipalities with an assessment of the current state of their infrastructure. By knowing how much it will take to repair or replace all of its assets, the municipality can then put a long-term plan in place to manage those capital costs.
Who's involved in the budget process?
The Mayor, members of Council, and staff are involved in the budget process. The CAO, Treasurer, Directors, and Managers prepare their departmental budgets, which are then shared with the Mayor and Council.
Are there other ways for the municipality to raise revenue besides property taxes?
Property taxes are the largest source of revenue for the County of Prince Edward. Other revenue sources include federal and provincial funding and user fees.
The Ontario Municipal Act limits how the County and other municipalities in the province can generate non-tax revenue. In 2017, the Ontario government gave municipalities a new revenue tool in the Municipal Accommodation Tax (MAT). In February 2021, the County implemented a 4% MAT on short-term, roofed accommodation stays.
By law, half of the funds generated by the MAT will remain with the municipality to support tourism infrastructure development. The other half must be used to support tourism marketing and development. In the last couple of years, Council has directed most of the municipal portion of the MAT to the road rehabilitation budget.
What is the difference between taxes and user fees?
Property taxes are levied to all property owners for goods and services used by the broader public or for public good. These programs and services are things such as roads maintenance, fire protection services, and affordable housing initiatives.
User fees are paid by individuals for municipal services that are a direct benefit to the individual. For example, fees are charged for someone wishing to rent a town hall for a wedding reception, or someone renting the ice for hockey practices or pick-up games.
Is a municipality allowed to run a deficit?
Provincial legislation states that municipalities must have a balanced budget. Under the legislation, municipalities cannot finance operations with debt. In addition, municipalities in Ontario are not permitted to run a deficit.
What is long-term debt and how is it used?
The County of Prince Edward uses long-term debt to fund larger capital expenditures such as the redevelopment of its long-term care home. It is similar to a homeowner’s mortgage and is repaid over time through payments that include interest.
What does the County do with any excess funds?
Governed by the Municipal Act, the County can invest surplus funds not immediately required for its purposes in short and long-term investments. For example, the County invests money in the reserves fund until it is required for future obligations.
What are reserves and reserve funds?
Reserves and reserve funds act as a savings account where funds are set aside for future needs.
The County’s reserves can be broken down into two categories:
Is the County's budget the sole budget that makes up my tax bill?
The County of Prince Edward sets its part of the tax rate, while the Province of Ontario sets the education tax rate. Together, these taxes help fund services in Prince Edward County and schools across the province.
How are the water rates set?
Please note: the operating and capital budgets for water and wastewater services are funded primarily by the water and wastewater rates. Water and wastewater rates dictate how much you pay for the water that you consume at your home, business or a bulk water station, as well as your base connection charge. Wastewater rates are tied to your water consumption.
Council has approved the water and wastewater rates for the period 2022-2026. The municipality will study the rates in 2026 in order to set them for 2027-2031. Public consultation will occur as part of that rate study.
In addition, the municipality has struck a Water and Wastewater Rates Community Committee to provide public engagement and user collaboration regarding the financial sustainability of the municipality’s water and wastewater systems, including service delivery, long-term planning, asset management, user rates and capital charges. This work will help to inform the 2027-2031 Rate Study.
How can residents influence the County’s budget?
Visiting this page frequently will help keep residents the most up-to-date on any 2026 municipal budget engagement opportunities. This page allows residents to complete surveys and share their ideas and comments regarding the budget process.