We recognize that a municipal budget is a daunting undertaking. The Town of Newmarket has well over 100 lines of business. While many people don't think of a municipality as a business, it definitely is, and we have expenses, revenues and a $100 million budget just like any other corporation.
The objective of the Municipal Budget 101 series is to take some of the more complicated budget topics and simplify them using examples for everyday life. Our goal is to engage our residents in the budget process and provide an understanding of the steps Newmarket is taking to be a progressive and sustainable community.
See the video below to learn more about how Newmarket's Budget works and what contributes to tax increases:
On this page
Asset Management Fund
Newmarket uses the Asset Management Fund (AMF), which functions as the Town’s long-term savings account. The AMF ensures that when major infrastructure or equipment needs to be replaced, the Town can cover the cost without raising taxes or taking on new debt.
This fund supports the future replacement of essential assets such as water mains, pipes, vehicles, sidewalks, roads, and more. Each year, Newmarket makes a significant contribution to the AMF ($25.7 million in 2025). By funding infrastructure replacements directly through this reserve, the Town avoids interest costs, prevents new debt, and protects residents from substantial tax increases.
Budget planning
Every year, the Town follows a consistent process to plan and prepare the municipal budget. At the same time, we’re always exploring new and creative ways to involve residents in shaping those decisions. Over the years, we’ve taken the budget conversation directly into the community—attending local events, sharing information through advertising and media releases, posting updates on social media, providing a Council toolkit, updating the Town website, featuring content in the Newmarket Now e‑newsletter, and more. All of these efforts are designed to give residents a meaningful voice in how their tax dollars are invested.
Budget process
Operating budgets fund the Town’s day‑to‑day operations and the delivery of services to residents and businesses. They are divided into two categories based on their funding sources: the tax‑supported operating budget and the rate‑supported operating budget. The operating budget is primarily funded through tax dollars and user fees, including fees for recreation programs as well as water and sewer services.
Capital Budgets outline investments in acquiring and renewing assets, such as infrastructure, public facilities, fleet vehicles, technology systems and essential equipment. These expenditures are typically significant in cost and are intended to provide benefits for many years. Some examples of capital projects include parks and trail enhancements, the development and renovations of community spaces like the Mulock Park, and the Pickleball Facility.
Capital Spending Authority (CSA) encompasses all capital investments authorized by Council, many of which extend beyond a single fiscal year due to design complexity and delivery timelines. Maintaining CSA commitments for future years ensures project continuity and safeguards financial stability for multi-year initiatives.
Reserve funds
Municipal reserve funds are essentially a municipality’s savings accounts. Just like individuals set aside money for future expenses—car repairs, home maintenance, or emergencies—municipalities save money to ensure they can pay for future needs without sudden tax increases or new debt.
Reserve funds help a municipality:
- Plan ahead for major expenses
- Avoid borrowing money (and paying interest)
- Stabilize taxes by preventing sudden spikes
- Respond to emergencies without financial strain
- Replace aging infrastructure in a predictable, responsible way
They are a key part of long-term financial sustainability
Glossary of financial terms
| Term | Definition |
|---|---|
| Service Pricing Policy | A guide for the pricing of municipal services to meet cost recovery targets. See Municipal Budget 101 (Service Pricing Policy) for more details. |
| Capital Assets | Infrastructure, land, buildings, machinery, equipment and other items that provide long term benefits. |
| Infrastructure | Capital Assets that deliver essential public service to support commercial and residential activities (ie. roads, water and sewage systems) |
| Operating Budget | The annual plan for the purchase and financing of the Town's operations. It includes salaries, materials and supplies. After all revenues are matched (ie. user fees), the tax levy is used to balance the budget. |
| Reserves/Reserve Funding | An allocation of accumulated net revenue to set aside funds for future expenditures. See Municipal Budget 101 (Reserves) for more details. |
| Asset Management Fund (AMF) | A reserve fund to finance the replacement of existing Capital Assets. See Municipal Budget 101 (ARF) for more details. |
| Capital Budget | The annual plan for the purchase and financing of Capital Assets. |
| Infrastructure Deficit | The gap between what is required to maintain infrastructure and what funding is available. |
| Public Sector Accounting Board (PSAB) | The rules for Municipal Financial Statements. |