2011 Municipal Study - City of Brantford

Municipal Study 2011Analysis of Net Municipal Levy Per CapitaIn order to better understand the relative tax position for a municipality, another measure that hasbeen included in the study is a comparison of net municipal levies on a per capita basis. Thismeasure indicates the total net municipal levy needed to provide services to the municipality. Thisanalysis does not indicate value for money or the effectiveness in meeting community objectives.Net municipal expenditures per capita may vary as a result of:Different service levelsVariations in the types of servicesDifferent methods of providing servicesDifferent residential/non-residential assessment compositionVarying demand for servicesLocational factorsDemographic differencesSocio-economic differencesUrban/rural composition differencesUser fee policiesAge of infrastructureWhat is being collected from rates as opposed to property taxesAs such, this analysis is not an “apples to apples” comparison of services, but rather has beenincluded to provide insight into the net cost of providing municipal services within each municipality.Further analysis would be required to determine the cause of the differences across each spendingenvelope and within each municipality. This analysis was completed using the most currentinformation available - net municipal levies as per the 2011 municipal levy by-laws and the 2010Stats Canada estimated populations.Changes in per capita expenditures reflect changes in expenditures relative to changes in population.Increasing per capita expenditures may indicate that the cost of providing services is outstripping thecommunity’s ability to pay, especially if spending is increasing faster than the resident’s collectivepersonal income. Examining levy per capita shows changes in levies relative to changes inpopulation size. As population increases, it might be expected that revenues and the need forservices would increase proportionately, and therefore, that the level of per capita revenues wouldremain at least constant in real terms. However, this is not always the case as the cost of providingservices is not directly related to population. If per capita revenues are decreasing, the municipalitymay be unable to maintain existing service levels unless it finds new revenue sources or ways toreduce costs.Revenue & Municipal Expenditure Profile Analysis & MPMPs70