“We strive to address the affordability challenges many in our community face while continuing to provide essential services and quality-of-life amenities that help citizens enjoy safe, healthy and thriving lives, now and in the future.”
- MAYOR IAN BODDY
3 CITY INTRODUCTION
5 THE CITY’S ROLE IN SERVICES
7 BUILDING AN OPERATING BUDGET
11 PROPERTY TAXES
17 BUDGET TRENDS AND UPDATES
Owen Sound is a lower-tier municipality in the County of Grey with a census population of 21,600 people and acts as a regional hub in a rural geographic area, with a daytime population expanding to more than 45,000 people.
Owen Sound employs staff in the areas of City Manager’s Office, which includes Strategic Initiatives and Operational Effectiveness, Communications and COmmunity Development, Community Services, Corporate Services, Operations, which includes Public Works and Engineering and Water/Wastewater, and Fire Services. City of Owen Sound Police Services and the Owen Sound & North Grey Union Public Library are governed by separate boards which are funded in whole and in part by Owen Sound taxpayers.
The budget includes the City of Owen Sound staffing 152 Full Time Equivalent (FTE) employees, 12 Part Time Equivalent (PTE), 26 seasonal staff, and 13 summer students.
The table below breaks down the number of employees by department. It does not include Police or Library employees.
Municipal governments in Ontario spend billions each year to provide the public services that meet the important needs of Ontario residents. The municipal government receives its power from the provincial government. The city or town council decides on by-laws that deal with issues concerning their community such as public parks, libraries, local police and fire services, garbage removal, and public transportation.
Municipal governments raise most of the money for financing these services from the property taxes paid by residents and businesses in the
local area. Additional funding comes from user fees such as facility rentals, for example, and some funding comes from provincial government grants.
In the City of Owen Sound, councillors are elected at large, meaning all councillors represent the entire municipality. In Ontario, the head of a local (lower or single tier) municipal council is either called the mayor or the reeve.
What about Grey County Council? The head of a county council is called a warden. The county council is composed of designated elected members from the lower tier municipalities. The county council itself selects the warden from among its members.
Depending on its size and its history, a local municipality may be called a city, a town, or a township or a village. They are also referred to as “lower tier” municipalities when there is another level of municipal government like a county or region involved in providing services to residents.
Owen Sound is a lower tier municipality, where as Grey County is upper tier. See the image on this page that helps define which level of government is responsible for which service or program for its residents.
Each year, City Council considers community priorities, Strategic Priorities, expected service levels, and legislated responsibilities as it sets the operating and capital budgets for the City of Owen Sound.
Since 2020, the City has made significant strides to reduce the gap between Owen Sound’s residential taxes and the average for Grey Bruce. This budget will continue to close that gap as City taxes are increasing slower than the rest of Grey County municipalities. Council always strives to find a balance between services offered and affordability for citizens.
City Staff build a budget by implementing zero-based budget techniques. Zero-based budgeting deviates from traditional budgeting in that the budget for each new period is created starting from a “zero base.” Council and staff must justify each expense before adding it to the new budget, even old and recurring expenses.
The City does not have the ability to simply disolve services from one year to the next, like a corporation might. This means fixed costs must be included in the budget first, such as staff wages and facility operations. Next, main contracts are included in the budget (such as transit and waste management). After this, each additional cost that isn’t fixed is analyzed and considered (such as professional memberships).
$36.2 million or 69.2%
The total operating expenses for 2025 are $48.5 million, but total tax levy required is $36.2 million.
The difference between what will be spent and what is required from taxpayers is offset by grants, user fees, and other revenues as City Council and staff work hard to stretch every tax dollar as far as possible.
Owen Sound residents help shape and influence City budgets all year long through the development of Master Plans or Strategic Plans, through regular Council and Committee meetings, and also through budget-specifc engagement.
For the 2025 Operating Budget, the City launched a dedicated online budget engagement project page on the OurCity platform (OurCity.OwenSound.ca) in mid-July 2024. This included educational information, FAQs, and a survey for residents.
Survey Insights:
• Clear preference for online engagement, with 82% favouring anonymous online surveys
• Residents prefer increasing user fees over property tax increases to manage rising service costs
• Mixed views on budget planning timeframes: while 32% of respondents would appreciate multi-year budgeting (four-year rates set each term of Council), but 47% prefer to remain with one year at a time changes
In-person Meetings:
• Preliminary budget reviews were presented at committee meetings throughout the Fall of 2024
• This gave members of the Committees and the public a chance to ask questions about the budget process or amounts.
Citizen engagement is crucial in creating a budget that truly reflects the needs and priorities of our community. Stay informed on future updates by visiting OwenSound.ca/Budget or have City news delivered to your email inbox by signing up at OwenSound.ca/Subscribe.
The amount of property taxes a resident pays is based on the value of the property they live in. Tenants pay a portion of their landlord’s property taxes through their rent. The property value is determined by the Municipal Property Assessment Corporate (MPAC) - not the City.
The taxes are calculated by multiplying the assessed value of a property by a tax rate. There are three parts to the tax rate:
1. The municipal tax rate, set by the City of Owen Sound
2. The municipal tax rate, set by the County of Grey
3. The education tax rate, which is set by the provincial government
For illustrative purposes, the chart below shows property tax calculations based on a sample tax rate of 0.15%. Owen Sound’s tax rate will be set in April of 2025.
Owen Sound has multiple tax rates, for different types of properties.
This includes:
• Residential (single-family structure available for non-business purposes)
• Multi-residential (seven or more self-contained residential units)
• Commercial (used for retail, food service, office or other general commercial uses)
• Industrial (may include warehousing, light manufacturing or other general industrial uses)
• Farmland (any tract of land devoted solely to agricultural purposes)
• Managed Forests (receive designation through an application for this tax class
For more on property types, visit mpac.ca
Property tax is a regressive tax - it is not linked to one’s income. Property tax rates are uniformly applied. This does disproportionately impact lower-income residents and adds to the overall cost of housing. This is why Owen Sound continues to strive to find the best balance between services offered and affordability for citizens and continually looks to the province for other possible streams of revenue.
The City of Owen Sound collects taxes on behalf of Grey County and the Province of Ontario.
Of each dollar collected by the City of Owen Sound...
.20 .08 .72
...the County of Grey receives 20 cents for their programs and services
...the Province of Ontario receives 8 cents for public education
...and the City of Owen Sound keeps 72 cents of each dollar to provide services.
Of the $0.72 of each tax dollar collected from residents, the City of Owen Sound works to be financially responsible while providing many services and opportunities.
Below outlines how the City breaks down one City tax dollar:
Includes Police and Fire services.
Includes construction and repairs to roads and sidewalks and conventional and mobility bus services.
Includes arenas, parks, cemetery, River District, programming, Tom Thomson Art Gallery, tourism and events.
Includes community development, engineering, planning and building.
Includes garbage and recycle collection, compost site, household hazardous waste events, and source separated organics (starting in June).
Includes stormwater network, drains and reservoirs.
Includes Council, Strategic Leadership Team, and corporate services supports such as insurance, human resources, IT, health and safety, finance, procurement, service desk, tax billing and collection, and corporate facility management.
Includes Library programs and services and the Adult Learning Centre.
Includes by-law enforcement, parking and animal control.
*Water and wastewater are not included as they are 100% funded through a rate structure.
Although reviewed and reset annually, the City’s Operating Budget doesn’t just last one year - the effects of City budgets span multiple years.
Owen Sound references the BMA study which compares all participating municipalities in Ontario, and shows Owen Sound is trending toward our taxes being more in line with comparable municipalities.
BMA Study
Since 2000, BMA Management Consulting Inc. has annually completed a municipal comparative study on behalf of participating Ontario municipalities. The study identifies both key quantifiable indicators and selective environmental factors that should be considered as part of a comprehensive evaluation of a local municipality’s financial condition. Use of the study over a number
“While we should be proud of what we have achieved, our vision is not to coast on these successes, but to build on them and to imagine new possibilities for our great city. We’re bridging the gap between our city’s tax rates and those of other municipalities.”
- Mayor Ian Boddy
of years provides trends to allow decision makers to monitor selected indicators over time. Trend analysis helps to provide interpretative context.
Closing the Gap
Over the last four years, we have made significant strides to reduce the gap between Owen Sound’s residential taxes and the average for Grey Bruce. As presented, the 2025 Operating budget will continue to close that gap. City Council and staff always strive to find a balance between services offered and affordability for citizens.
Since 2020 the gap between Owen Sound ‘s residential taxes and the region average was reduced by 17 per cent! This is a huge shift. This is even after a reduction in the multi-residential ratio that shifted the tax burden back to the residential tax class. The pressure is not off, and our current proposed increase is expected to further close the gap in 2025, building on our previous progress. In multi-residential and commercial taxes, Owen Sound is in the mid range, and in industrial the low range for the region.
Starting this June, we’re excited to launch our new Green Bin Organics Program, making it easier than ever for residents to reduce their environmental impact and support Owen Sound as a Green City.
This weekly collection service for kitchen waste will be available to residential properties with six or fewer units (excluding the River District), complementing our existing bi-weekly garbage collection. Eligible households will receive their green bin, kitchen catcher, and comprehensive instructions in mid-May, along with access to detailed program information.
This important initiative represents another step forward in our commitment to waste reduction and sustainable living, helping divert organic waste from landfills while reducing greenhouse gas emissions. By separating kitchen waste into the provided green bins, residents can actively participate in creating a more environmentally responsible community and contribute to a greener future for our city.
Visit OwenSound.ca/Waste for current waste collection information and stay tuned for more Green Bin information in 2025!
Mayor Ian Boddy
iboddy@owensound.ca 519-376-4440 ext. 1212
Deputy Mayor Scott Greig sgreig@owensound.ca
Councillor Travis Dodd tdodd@owensound.ca
Councillor Jon Farmer jfarmer@owensound.ca
Councillor Brock Hamley bhamley@owensound.ca
Councillor Marion Koepke mkoepke@owensound.ca
Councillor Suneet Kukreja skukreja@owensound.ca
Councillor Carol Merton cmerton@owensound.ca
Councillor Melanie Middlebro’ mmiddlebro@owensound.ca
Residents can report concerns to the City using an online form at OwenSound.ca/ReportAConcern or by scanning the QR code above
Completing the online form is a convenient and efficient way to receive information or address any issues. City staff will respond to concerns based on priority.
Topics you can report on include:
• Animal Concerns
• By-law Complaints
• Garbage or Recycling Issues
• Playground Equipment Issues
• Pothole Issues
• Sidewalk Issues
• Snow Removal Issues
• Traffic Signal Issues
• Transit Service Issues
• Tree Issues
• Watermain Break Issues
• And more
While reporting, there is a chance to include a location, a brief explanation, and any photos that may help City staff to understand the issue better.
