FAQ's

Scugog provides a number of services and programs to the residents and takes care of roads, facilities and equipment valued at almost $500 million in the Township.  Property taxes are the major source of revenues to pay for the services/ programs and taking care of our assets.

Property taxes are the most significant revenue source for the township; however, we also receive grants from the Province of Ontario, and charge user fees to help offset the costs of programs and services to the taxpayer to the extent possible, in addition to other miscellaneous funding sources including development charges.

Many services offered to residents are available equally to all and these would be included as part of your property taxes.  Examples include Fire protection, snow plowing of roads, grass cutting in parks etc.   User fees are the rates charged for the delivery of products or services to residents that are optional and offered on a fee for service basis. Examples include rental of meeting rooms, purchase of a permit, enrollment in a day camp program etc.

No this is not always possible.  Although these fees are reviewed annually and compared against other areas and similar municipalities, staff balance the recovering of charges and ensuring that programs and services are offered to the public in an affordable and responsible manner.

Each year municipalities face several pressures that increase the costs of services including inflation, added services due to growth and changes in community expectations or legislation.

The cost to provide services often increase at a rate that exceeds other revenues. The Township has very few options to address these increases.  They can be offset by increased taxes, increases in other revenues, cutting costs or reducing programs.  All these options are considered when the annual budget is prepared.  To maintain existing service levels and programs it is not possible to go without increases.

Municipalities struggle to manage when their prime source of funding is the property tax base. The ability for municipalities to raise additional revenues is limited due to legislative or legal constraints and are left with reducing services if they want to keep taxes low in the short term.  New revenue sources need to be made available through legislation to take the pressure off the tax base.

Staff and Council recognize it is a difficult time for everyone. The demand for services and cost pressures continues each year, and inflation is having a significant impact on service delivery. 

The majority of the increase in 2021 & 2022 was related to the infrastructure requirements identified in asset management studies. The funding for reserves allows the municipality to invest funds when needed to help maintain our assets at the lowest cost.  Recent studies have indicated the asset management deficit within Scugog is $190 million for roads alone, of which over $100 million is now or near-term needs. This reinforces the need to continue to invest in assets. The deficit cannot be eliminated all at once, and a planned approach of gradually increasing contributions to the capital reserves so they can be used to finance capital improvements is the most feasible solution.  

The right work done at the right time allows you to extend the life of a road at the best possible price. You can stretch the life of a road from 25 to 50 years at much less than the cost of building the road twice, simply by doing the right maintenance activity at the right time. The same philosophy holds for facilities and equipment needed to support service delivery. Without the facilities to deliver programs, or the equipment to maintain the roads and facilities, service levels will decrease.

Staff are critical to service delivery.  Without staff who would drive the snowplows, graders, cut the grass, clean the parks, inspect the properties, fight the fires, review the plans, and many other functions that go on every day.  Cutting staff would reduce the ability to provide the services residents need, expect and deserve.

Development charges have typically been used to offset a large percentage of the capital cost associated with growth however they do not cover all costs.  In addition, assets added to the Township’s inventory must be maintained to ensure they continue to meet the needs of users in the future.  This maintenance comes with a cost as the increase in usage will add to the wear and tear on all municipal assets. With the restrictions and exemptions on DC's as a result of Bill 23, it is even more likely growth will not pay for growth. 

Although the increase in taxes collected from new growth helps offset some of the costs, it cannot cover everything. The demand for services by the new residents (who will have service level expectation from their former municipality) along with the added cost to maintain new infrastructure assets assumed from developers can be substantial.  Some areas that will be impacted by population growth and service expectations include cleaning of parks or public facilities due to increased foot traffic, an increased need for by-law enforcement, an increase in the number of roads to be cleared of snow during the winter, and the need to allow for more participants in recreation programs offered.  

We recognize businesses have been impacted by two years of restrictions due to the pandemic, however the demand for municipal services and legislative requirements remains. The public expects continued service delivery and costs are increasing, revenues are decreasing, and pressures continue to grow.   The Township works with community committees such as the BIA, the Chamber, and the Economic Advisory Committee to help find ways to support business. The Region’s economic development department also provides a key role and resource for assisting businesses within Scugog. 

Township staff are always interested in what the public has to say and encourages them to review the postings on the website www.scugog.ca.  The budget presentation was posted on You Tube should you wish to view it followed by Q&A.