Glossary

The process of distributing the cost to deliver corporate support services across various departments and/or cost centres.

For example, the Region divides the cost of providing IT support services across all departments.

A comprehensive report on an organization’s activities and financial performance over the course of one financial year.

The process of applying to an authoritative organization to change a decision. For instance, if you disagree with MPAC’s assessment of your property, you have the option to file an assessment appeal.

If you are disputing your tax bill, you may file a tax appeal.

An increase in the value of an asset or good over time.

The sum of all of the changes that happen to a property within a calendar year, including:

• New construction
• Major renovations
• Demolitions
• Property value appeals

A budget is a financial plan that outlines the money the Region will raise and spend within a year.

It is the plan that aligns the Region's priorities with the services we deliver to residents. It directs what infrastructure will be purchased, built and repaired.

The capital budget is the annual plan for the purchase of capital assets. Capital assets include things like:

• Roads
• Water treatment plants
• Sewers
• Buildings
• Machinery and equipment

The Region updates a 10-year capital budget and plan each year to ensure that we have enough funds to maintain our aging infrastructure. Additionally, we plan for higher replacement cost of assets and new projects that will support community growth.

When MPAC re-assesses all properties in Ontario, some commercial, industrial or multi-residential properties decline in value. Ordinarily, this decline would decrease property tax.

However, the capping program uses a "clawback" to fund revenue shortfall resulting from lower assessment values by withholding some or all of the reduction to property owners.

A credit rating is an estimate of the organization's ability to meet their financial commitments based on previous transactions.

Niagara Region’s credit rating is evaluated by Standard and Poor’s bond agency each year. The Region has maintained its "AA" credit rating with a stable outlook.

The potential that an organization or person who borrows money from a bank will fail to meet its required payment terms.

Annual principal and interest costs included in the operating budget to pay for the construction of new capital projects (i.e. roads, bridges, buildings, water plants).

Debt differs greatly from a deficit as it is often used to pay for significant capital projects, while a deficit refers to not having enough money to pay for operating expenses.

Products or services that have not yet been provided to the customer. As the product or service is delivered over time, it is recognized as revenue on the income statement.

An example of this would be development charges, gas tax and government grants.

A deficit would occur if the Region’s actual net operating expenses exceeded its budgeted net operating expenses.

Deficit differs greatly from debt in that a deficit refers to not having enough funds to pay for operational expenses like salaries, utilities or fuel. Debt, on the other hand, pays for significant infrastructure projects where you have an asset (i.e. new roads, bridges, water plants).

It’s important to note that the province does not allow Niagara Region to run a deficit.

Fees collected from new property developments and redevelopments in order to pay for growth related costs such as roads, water, wastewater and planning costs. These are required to provide service and accommodate growth.

A projection of Niagara Region’s year-end financial results. The forecast is used as guidance for financial decisions and recommendations.

Fixed costs are fees that do not change based on the amount of services you use.

All funds received from the provincial and federal governments to help pay for programs and services delivered by the Region.

The total cost to deliver programs and services. This is before funding and subsidies for cost-shared services are applied.

A monetary asset purchased with the intent that the asset will provide income in the future.

Includes all revenue received from area municipalities (on behalf of residents), including Regional property taxes, payment-in-lieu and supplemental.

The ability of an organization to obtain funds to meet immediate or short-term financial obligations.

Under provincial and federal regulations, Niagara Region is required to provide a variety of programs and services for residents, businesses, organizations and municipalities.

A non-profit corporation responsible for assessing the value of homes and businesses across the province.

Pays for the daily business of the Niagara Region and its boards and agencies. This budget pays for programs and services, including the staff to deliver those services, supplies and repayment of debt for major projects.

The process of establishing a dollar value for your home or business for property tax purposes.

MPAC assigns all properties and/or land in Ontario to one of seven classes according to its primary use:

• Residential
• Multi-residential
• Commercial
• Industrial
• Pipeline
• Farm
• Forest

Every four years MPAC reevaluates the current value of your property or home. Depending on the value of your home (increase value or decrease), you may pay more or less property taxes.

Taxes charged to property owners according to the assessed value of each property.

Property taxes are collected and administered by the local area municipality in which the property is located. The local municipality distributes the Region its share of property tax revenue and the education property taxes to the Ministry of Education.

Pays for rate based services such as:

• Waste management
• Curbside collection
• Recycling and landfill sites
• Water and waste water treatment
• Biosolids management
• Lab services

Costs for these services are charged to municipalities based on usage (water and wastewater) and number of households (waste management). The rates charged to residents for each of these services will vary depending on where they live.

Money set aside to mitigate future fluctuations in the economy, changes to government funding and unanticipated events. Examples include:

• Taxpayer relief
• General capital levy
• Employee Future benefits reserve

Differ from reserves as they must be used to meet a specific purpose(s), as defined by the Municipal Act.

As an example, the development charges we collect are reported as deferred revenues or reserve funds. These funds must be used towards infrastructure developments (i.e. roads, buildings, street lights) related to economic growth.

Money received through ordinary activities.

The Region receives its revenue from user fees, services charges, grants and investment income.

Funding received from other levels of government to offset the cost for programs that Niagara Region delivers on their behalf.

Additional money received within the calendar year as a result of assessment growth.

This money is budgeted for based on historical trends and used to fund existing programs and services.

A surplus occurs when the Region spends less than it thought it would, or raises more revenue than planned.

Niagara Region allocates surpluses to reserves.

The Province of Ontario introduced the Tax Capping program to protect commercial, industrial, and multi-residential properties from significant tax increases. This program limits or "caps" tax increase at 10 per cent as a result of changes to property value.

Capping protects landowners from paying the full amount of taxes based on the assessed value of the property as they are paying less tax than if they calculate their taxes using the general formula.

Loss of revenue due to reductions in property assessment values.

The alignment of service delivery between municipal and provincial (or other levels) governments.

Includes shared services revenue without shared services agreement, licences, permits, approvals, and fees and service charges on the User Fee By-Law such as:

• Child care fees
• Health fees
• Police fees (i.e. accident reports, etc.)
• Seniors homes fees (i.e. long-term care accommodations fees)
• Road fees
• Other miscellaneous fees (i.e. zoning)

Variable costs are fees that change based on the volume of services you use.