Municipal governments are charged with the responsibility of providing a broad range of services to their residents.  These services include: water and sewer services; fire protection; recreation facilities; land planning and administration; economic development; capital infrastructure replacement; and capital operations and maintenance.  The exact nature of the services provided varies, and will depend upon the size of the community.  Many communities also provide a wide variety of services, under contract from other levels of government.  These can include such services as post offices and airport maintenance, management under contract from the federal government, as well as income assistance and social housing from the Nunavut Government

While demand for services continues to increase, constraints continue to be placed on the revenue available to pay for these services.  As a result, municipal governments must carefully review local expenditure plans to ensure that all services are planned and provided for, within the level of funds available.  Additionally, the resource plans must address the needs of the community.

To achieve the best results in the planning for the delivery of community services, key financial, economic, and social factors relating to these services must be brought together under a single process.   This process is known as the budget.

The budget process is the main instrument for estimating and controlling local spending.  It must take into account community needs and legal obligations. It should also serve as a valuable tool to monitor the performance of the municipal government’s management.