A City budget is an annual financial plan that outlines how much money the City expects to receive and how those funds will be spent. It helps determine the level of services provided to residents and guides decisions about maintaining and improving infrastructure such as roads, buildings, and public transit.

The operating budget is like paying your house bills to keep the lights on. It covers day-to-day spending for services such as recreation programs, parks maintenance, roads, transit, police, and other emergency services. Like household expenses, these costs rise with inflation. About 30 percent of the operating budget is funded through property taxes, with the remainder coming from provincial grants, subsidies, and user fees.

The capital budget is more like investing in major household purchases or renovations. It funds the City’s long-term infrastructure needs, including the construction and repair of roads, bridges, transit, public buildings such as libraries and community centres, fire stations, and parks. The capital budget is largely funded through reserves.

Balancing the budget means the City cannot spend more money than it brings in. Provincial law requires the City to balance both its operating and capital budgets each year, ensuring that total expenses equal total revenues. To achieve this, the City can increase revenue through property taxes, fees, and other funding sources or manage expenses by adjusting or reducing the cost of services.

The City of Sault Ste. Marie collects taxes for the Province of Ontario (for school boards), levy boards, and outside agencies, as well as the City of Sault Ste. Marie.

For example, in 2026, for every dollar collected based on an assessment value of $200,000, the taxes owed for this property would be: $3,699. Below is a breakdown of where the property tax dollars would be allocated. 

Use the Sault Ste. Marie Property Tax Calculator to get a better understanding of where your tax dollars go.