Budget Basics

Overview

New Tecumseth: Small-Town Charm, Big Possibilities

New Tecumseth blends small-town warmth with the best of rural and urban living. Our three vibrant centres — Alliston, Beeton, and Tottenham — each offer their own unique character, surrounded by thriving farms and a strong manufacturing base.

We’re proud to be one of Canada’s top 5 safest communities and a growing hub for business, with over 2,500 companies employing more than 21,000 people. Just an hour north of Toronto and minutes from Highway 400, we’re home to 40,000+ residents who enjoy top-notch amenities, recreation, and community services.
National rankings have recognized us as one of the best places in Canada to live, retire, raise a family, and buy real estate. Our festivals — from Canada Day to Winterfest — celebrate our rich culture and community spirit.

New Tecumseth is growing, but we’re staying true to what makes us special.

New Tecumseth at a Glance

Based on the 2024 Canadian Census, New Tecumseth is growing fast — ranked 7th among urban municipalities in Canada for population growth, now home to nearly 44,000 residents. With a mix of rural charm and urban convenience, it’s a place where people love to live, work, and play.

• Income Snapshot
  • Median household income: $90,000
  • Average household income: $114,900
  • About 28% of residents spend 30% or more of their income on housing
• Commuting & Employment
  • 65% of the labour force commutes from outside the Town
  • Over 21,000 employed, with 2,230 unemployed
• Housing & Growth
  • Strong real estate interest and steady development
  • Diverse income levels, with many households earning over $100K
• Recreation & Lifestyle
  • 70 hectares of parkland
  • 26.42 km of the Trans Canada Trail
  • Over 30,000 drop-in recreation participants annually
  • Home to unique festivals and events
• Diverse & Welcoming
  • Top languages spoken (besides English): French, Italian, Spanish, Portuguese
  • Recognized as one of the best places to live, retire, and raise a family in Canada

New Tecumseth continues to thrive — blending community spirit, economic opportunity, and a high quality of life.

Funding Our Communities: A Shared Effort

In Ontario, every level of government plays a role in supporting our communities — and each receives a portion of the taxes collected to do so.

• Municipalities like New Tecumseth receive about 9 cents of every tax dollar.
• The Province receives 44 cents, and the Federal Government receives 47 cents.

Even with a smaller share, municipalities are responsible for 60% of public infrastructure — including roads, water systems, parks, and community facilities. The Province manages 38%, and the Federal Government 2%. 

This highlights the importance of thoughtful local budgeting and long-term planning. It also shows how all levels of government work together to build strong, connected communities.

 Budget

What Shapes the Town's Budget

The Town’s ability to deliver quality services and maintain infrastructure comes from a variety of financial sources. Just like managing a household budget, the Town’s annual budget is influenced by a variety of factors. Here’s a look at some of the major factors which shape the budget each year:

Expenditures 

• Community Needs and Priorities - Get Involved with the Public Input Session on October 8 at Town Hall (full Council schedule)
• Council Direction - Council is ultimately responsible for setting and approving priorities and goals that guide how the Town plans and allocates budget each year
• Various Plans/Studies undertaken to determine the historical and current states of various Town services to provide the best plan for the future
• Strategic Plan, the Town's long-term plan outlining priorities and guiding future spending
• Regulatory Changes (new bills, etc.) can happen each year as new bills and laws are enacted, changing how the Town performs tasks which impacts budget decisions
• Economic Environment Changes including pressures from inflation, rising costs, tariffs, and interest
• Unexpected Events such as emergencies

Funding Sources

• User Fees - Through By-law, fees and charges are collected for various services or activities provided or done by or on behalf of the Town, such as recreation programs, water and wastewater services, and dog tags.
• Taxes
• Development Charges (DCs) collected when building permits are issued for new homes, businesses, and other developments, DCs help pay for the roads, parks, and services needed when new homes and businesses are built
• Grants are applied for through various external organizations to supplement other revenue
• Donations
• Reserves and Reserve Funds (learn about Reserves and Reserve Funds under More Budget Basics below)

Together, these funding sources help ensure New Tecumseth remains a vibrant, well-serviced, and financially responsible community.

 Capital Budget: Building for Tomorrow

The Town’s Capital Budget helps fund long-term projects that shape our community — like roads, bridges, parks, buildings, and vehicles.

How We Fund It:

We raise money through a mix of property taxes, utilities, development charges, government grants, reserves, and strategic borrowing.

How We Use It:

Funds are invested in projects that build, upgrade, or extend the life of Town assets — ensuring New Tecumseth continues to grow safely and sustainably.

Operating Budget: Powering Everyday Services

The Operating Budget covers the day-to-day services that keep New Tecumseth running — like road maintenance, curbside collection, recreation, parks, and emergency services.

How We Fund It:

Tax-supported services: Funded by property taxes, user fees, and reserves 

User rate-supported services: Funded by user rates and reserves for services like water, wastewater, and parking

How We Use It:

These funds help deliver the essential services residents rely on every day.

Budget at Work

How We Invest in New Tecumseth

Ever wonder how your property tax dollars are put to work? Here’s a look at how the Town of New Tecumseth allocates funding to keep our community thriving:

• 44% supports day-to-day Town operations — everything from parks and roads to recreation and public works
• 12% goes toward building and maintaining infrastructure through the Town’s Capital Plan
• 11% is directed to education, as required by the Province
• 33% supports key service partners like policing, libraries, and County services such as land ambulance and social programs

Every dollar plays a role in delivering the services and infrastructure that make New Tecumseth a great place to live.

Your Tax Dollars at Work in New Tecumseth

Every day, your contributions help power the services and programs that make New Tecumseth a great place to live. From safe roads and clean parks to emergency services and community events — your support keeps it all running. Here’s a look at how a typical household’s property taxes help deliver real value across the Town:

• Fire & Emergency Services
  • 24/7 protection and rapid response to emergencies across the community.
• Roads & Traffic
  • Maintenance of roads, sidewalks, stormwater systems, and snow clearing to keep you moving safely year-round.
• Transit
  • Reliable and accessible transit options to connect residents to work, school, and services.
• Parks, Recreation & Culture
  • Beautiful parks, trails, and recreation centres, plus events like the Potato Festival and Honey Fest that bring our community together.
• Waste & Recycling
  • Curbside collection, landfill operations, and hazardous waste disposal to keep our Town clean and green.
• Planning & Development
  • Smart growth planning, zoning, and development services that shape our future.
• Libraries & Community Services
  • Access to books, digital tools, and programs for all ages through our local libraries and service partners.
• Service Partners
  • Support for essential services like policing, land ambulance, and social programs delivered through the County of Simcoe and other partners.

 Every dollar is an investment in the safety, sustainability, and vibrancy of New Tecumseth.

More Budget Basics

What Are Reserves and Reserve Funds?

Think of reserves and reserve funds like the Town’s savings accounts — they help us plan for the future, manage unexpected costs, and keep taxes stable.

• Reserves are set aside by Council for specific purposes, like saving for future projects or emergencies. They don’t earn interest and aren’t tied to a specific asset.
• Reserve Funds are more structured. They’re legally separated from general funds and must be used for a specific purpose. Some are obligatory (required by law, like Development Charges), while others are discretionary (created by Council for planned needs). These funds do earn interest, which stays in the fund.

Together, these financial tools help the Town stay resilient, fund infrastructure, and manage debt responsibly.

What is Assessment Growth?

Assessment growth refers to the increase in a municipality’s property tax base resulting from new developments, property improvements, or changes in property assessments. This growth can stem from newly constructed residential, commercial, or industrial properties being added to the tax roll. It may also arise from renovations or expansions that enhance a property's assessed value, as well as reassessments and adjustments made by the Municipal Property Assessment Corporation (MPAC) to reflect current market conditions.

Challenges Today, Growth Tomorrow

Municipalities are facing some financial hurdles — slower economic growth and limited water capacity have made it harder to welcome new development. That means fewer new homes and businesses, and less revenue to fund the infrastructure we all rely on.

The cost of things like fuel, hydro, and materials continues to climb. While the Town works hard to find efficiencies, these increases can affect the cost of maintaining current service levels.

But we’re not standing still. We’re actively addressing these challenges, including strengthening our asset management reserves to protect the services and spaces that make our Town great.

The expansion of the Raymond A. Barker Water Treatment Plant is underway, with interim solutions being explored to unlock development sooner. Plus, growing interest in industrial projects is set to boost our local economy and tax base.

We’re laying the groundwork for a stronger, more vibrant New Tecumseth — and the future looks bright.

Strong Mayor Powers and the Budget Process

In Ontario municipalities like New Tecumseth, the Mayor has been granted additional responsibilities known as strong mayor powers. These powers include leading the municipal budget process by proposing the annual budget by February 1, with structured timelines for council review, potential amendments, vetoes, and overrides. The process emphasizes collaboration, transparency, and long-term planning, while also outlining accountability measures and procedures for filling vacancies. To learn more, visit the Ontario Municipal Councillors Guide. 
Strong Mayor Powers Report

A Balanced and Transparent Budget

Under Sections 289 and 290 of the Municipal Act, the Town is required to prepare a balanced operating budget each year. This means we can't borrow money to cover day-to-day operating costs—borrowing is only permitted for capital projects, like building new infrastructure.

To keep things transparent, the Town shares its budgets and financial statements publicly, so residents can see exactly how funds are being used. We also rely on asset management strategies and a long-term financial plan to guide and support major capital investments.

Plans for the Future

The Town of New Tecumseth's plans, studies and reports and asset management improve our community and guide us toward our future goals.

 Budget Book

 Learn more about the Town Budget, review the 2025 Budget Book, and more on our Budget & Finances Page.