Municipal Capital Levy moves funds from operating to capital budget

The Capital Levy is the component of a municipal operating budget transferred to the capital reserve funds to be spent in the capital budget and on principal and interest payments on debt. It contributes toward the replacement of capital assets owned by the municipality.

Examples

Belleville

Belleville approved an annual capital levy increase of 2.2% annual capital levy increase to the Asset Management Reserve Fund to pay for the ‘infrastructure gap’ between the asset maintenance needs outlined in the 2022 Asset Management Plan.

In the 2025 Operating Budget, the Capital contribution increased by $637,200 or a tax levy impact of 0.50% and the debt financing increased $228,100 or a tax levy impact of 0.18%.

2023

Net impact: $635,100 (0.57%)

Current year capital contribution increases are reflective of identified operating impacts outlined in the approved 2023 Capital Budget ($543,500) . These increases are reflective of the additional contributions required for new infrastructure identified in the Capital budget. Ensuring these increased contributions are made helps the City manage its infrastructure gap and ensure renewal and replacement funding will be available when required for this new infrastructure. Debt financing increases ($91,600) reflect the expected debt issuances in the year for the QSWC energy savings project and a reduction of development charge debt funding in Fire.

2024

Net impact: $1,219,200 (1.03%)

Current year capital contribution increases are reflective of identified operating impacts outlined in the approved 2024 Capital Budget ($866,700) as well as Contributed capital from subdivision approvals ($145,000). Ensuring these increased contributions are made helps the City manage its infrastructure gap and ensure renewal and replacement funding will be available when required for this new infrastructure.

Debt financing increases ($197,500) reflect the completed debt issuances in the year for the QSWC energy savings and
Mineral and Maitland Road reconstruction.

Kingston

Kingston has 1% annual capital levy property tax increase to raise funds to support capital infrastructure, part of longer term strategies for responsible asset management.

Peterborough

Peterborough uses the dividend from its ownership stake in Peterborough Utililties Group (COPHI) to bolster the annual capital levy provision. For the 2025 budget, the amount is estimated at $4M.