![]() ![]() This expenditure is offset by funding and subsidies for cost-shared services as well as fees and charges for programs and services. The gross is the total cost to deliver programs and services. The Difference Between ‘Gross’ and ‘Net’ Costs For example shelters, daycare, emergency medical services, public health and income support programs are funded by both the City and the Province of Ontario. The costs of several of the City’s services are shared between the City and other orders of government. Depreciation accounting is another commonly used term to describe the amortization of tangible capital assets. The accounting process of allocating the cost less the residual value of a tangible capital asset to operating periods as an expense over its useful life in a rational and systematic manner appropriate to its nature and use. In turn, the revenue collected from these user fees pays for the services that are provided and the infrastructure to deliver them. For example, water and garbage and recycling costs are calculated by how much water is used and the size of the garbage bin. These programs are funded almost entirely by the user in the form of fees. The City also has three rate supported programs: Toronto Water, Solid Waste Management Services and the Toronto Parking Authority. The capital budget is primarily funded from reserves, development charges, other levels of government and by borrowing funds. The City updates and presents a new 10-year Capital Budget and Plan each year as part of the budget process. It pays for the construction and repair of transit, roads, bridges, parks and public buildings such as libraries, community centres and fire stations. The capital budget funds the City’s infrastructure that supports service delivery. ![]() The remainder comes from provincial grants and subsidies, as well as user fees. Approximately 32 per cent of the funds for the operating budget comes from property taxes. The operating budget covers day-to-day spending on services such as recreation programs, parks maintenance, public health, roads, transit, police and other emergency services. ![]()
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