Niagara Region Budget

Every year, Niagara Region creates a budget that shows how much money we need to pay for the programs, services and key priorities that are important to our community.

The budget is a financial plan for how and where Niagara Region puts your regional tax dollars, utility fees and money from other levels of government to provide services and programs that help our communities run.

Where the money comes from

• Property taxes

  Your property tax bill comes from your city / town. To make it easier, all the taxes for your city / town, Niagara Region and your school board are combined in one bill.

  You make payments each year. Your city / town collects the money and sends the Regional portion to Niagara Region.

  Regional taxes are set by Niagara Region and are made up of the general tax levy and special tax levies.

  General tax levy

  This is the main bucket of money that pays for most of the Regional services and programs you get.

  Everyone in Niagara gets the same level of service for these things, so the general levy is the same for everyone.

  Special tax levies

  These are separate, dedicated pots of money to pay for waste management services and regional transit.

  People in Niagara get different levels of service for garbage collection and transit depending on their municipality. This means they are charged different rates based on the level of service they get.

• Water and wastewater rates

  Almost all cities / towns buy treated water from Niagara Region at a wholesale rate and then resell it to residents based on how much they use.

  Money is also charged for the fixed costs of building, maintaining and running the wastewater treatment system.

  When Niagara Region sells water to the cities / towns:

  • 25 per cent of the cost is based on the city / town's average use over the last three years
  • 75 per cent of the cost is based on how much water the city / town uses
• Grants, subsidies and recoveries

  Money comes from the federal and provincial governments for specific projects and service operations and from Niagara municipalities for capital works on municipally owned assets.

  Funding from upper levels of government can come from annual transfers or application-based grants. This is an important funding source that helps the Region welcome growth, support existing assets, build new infrastructure and community housing, and keep programs responsive to changing community needs.

  A subsidy is like a grant, but it is more often used to pay for services. For example, subsidies to help fight homelessness are calculated based on population size and used to pay for homelessness services.

  A recovery is a technical term for a reimbursement of an expense. During the pandemic, recovery funding was given to cover some of the money Niagara Region had already spent.

• Reserves

  Like a savings account, reserves are set aside by Regional Council as a way to plan ahead. Reserves help pay for things we can't anticipate, like changes in the economy, unexpected events and emergencies. They're also used to pay for one-time capital projects.

  The money set aside in reserves can come from:

  • Budget surpluses
  • Selling assets like land or buildings
  • Development charges
  • Special property tax levies or other revenue
• Other revenue

  Money is also collected through other fees and charges for services and activities provided by Niagara Region. This includes things like bus fares, seniors programs, business licensing and inspections.

  Learn about:

  • Fees and charges bylaw
  • 2025 Schedule of Fees and Charges
  • Fees for development charges

Where the money goes

How Niagara Region spends the money is guided by Council's Strategic Priorities and feedback from Niagara residents.

Most of Niagara Region's important and essential services and programs are paid for by the general levy. This includes Public Health and Emergency Medical Services, Community Services, Transportation and Economic Development. The general levy also pays for Corporate Administration and Corporate Services that keep Niagara Region working efficiently.

The self-governing agencies, boards and commissions that deliver important services for the Region are also paid for out of the general levy. These are:

• Niagara Regional Housing
• Niagara Regional Police Service
• Niagara Peninsula Conservation Authority
• Court Services

Waste management and Niagara Transit Commission operations are paid for by special tax levies. Water and wastewater management are paid for through your municipal water bill.

How the budget is created

Creating the budget takes about a year. It involves staff from all of Niagara Region's departments, regional agencies, boards and commissions, the Regional Budget Review Committee of the Whole and Regional Council.

Watch Council and committee meetings online.

Budget dictionary

• Operating budget and capital budget

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

  Operating budget

  The operating budget covers the day-to-day costs for delivering regional programs and services, such as child care services, paramedics, police, seniors services and waste collection. These costs include things like utilities, office supplies and staff wages.

  The operating budget is like your monthly costs, such as food, your phone and utilities.

  Capital budget

  The capital budget spends money on big, long-lasting assets like building new infrastructure and buying new equipment. It also covers regional road maintenance, water treatment plants, buildings and machinery.

  These are known as capital projects. The capital budget is like your big one-off purchases and investments, like buying a home or vehicle, or renovations.

• Gross versus net budget

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

  Gross budget

  The gross budget is the total cost to deliver Regional programs and services. It includes everything from snow plowing to long-term care to office supplies.

  Net budget

  The net budget is the cost to deliver Regional programs and services after subtracting water and wastewater rates, grants, subsidies, fees and charges. This is the part of the budget that's paid for through Regional property taxes.

  Niagara Region's budget is like your grocery bill. Your total (gross) bill at checkout is $500. After using $150 worth of coupons and a $25 gift certificate, you're left with a $325 (net) bill to pay.

• Regional tax base and assessment growth

  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.

• Assessment value versus market value

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

  Market value

  Market value is what a real estate agent might list your property for when selling. It's also what real estate websites might tell you it's worth. Market values are what appear in news stories about the average cost of buying a home. The market value changes based on what someone is willing to pay.

  Assessment value

  Assessment value is a different number used to calculate your taxes. You can find it on your tax bill from your city / town. Check your assessment value through 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.

• Property value reassessment

  Every four years, property owners in Ontario get a reassessment from the Municipal Property Assessment Corporation. These values are based on real estate market changes and are used to update how property taxes are divided between all property owners in a city / town.

  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.

• Interim tax levy

  An interim tax levy is like a tax installment that's put in place before the final tax amount is set. Since the final budget can take time for Regional Council to approve, property tax bills are still sent out on a regular schedule.

  The first bill for the year uses the interim tax levy. The second bill adjusts the total amount of taxes owed based on Regional Council's approved budget.

  To figure out the interim tax levy, the Region uses 50 per cent of what you paid in taxes in the year before.