ERIN – Town officials are proposing a 2025 draft budget that projects a 3.9 per cent tax levy increase with a total levy of $10,222,945.
Last year the town passed a 3% tax rate increase for 2024, with the tax levy totalling $8.34 million.
If a 2025 tax levy increase of 3.9% is passed, the levy will increase by $1.8 million.
At the Nov. 14 council budget meeting, town treasurer Wendy Parr presented a report on the proposed budget.
The 2026-28 forecasts included in the report are for planning purposes and will be revised in future budget processes, stated officials.
The 2026 forecast recommends a tax levy increase of $1.5 million or a 2.53% tax rate increase; in 2027 the figures are $2.6 million and 2.54% respectively; and in 2028 they are $400,000 and 2.51%.
Tax rates are affected by assessment increases across the municipality, including 500 new homes in 2025, 738 in 2026, 556 in 2027 and 397 in 2028.
Councillor John Brennan mentioned the idea of including a municipal cost index along with the consumer cost index (CPI) report.
“CPI is not really reflective of the kind of expenditures that a municipality has versus an individual person,” noted Brennan.
Parr replied, “I hadn’t heard of a municipal price index, but I could certainly look that up and include that in further reports.”
“That would be good because CPI gives us an indication of where our residents are … but this other index that I’m talking about talks more about the price of fuel, the price of construction and things like that,” Brennan explained.
“I think it gives our residents a better handle on the kind of expenditures that we face because they’re far more than CPI is.”
Capital requests
For 2025 there is $11.3 million in total capital requests, which excludes $106 million for the wastewater project, the report states.
If $1.2 million is taken from taxation it could be divided into various projects, including $500,000 for information technology (digital transformation), $135,000 for fire equipment upgrades and $80,000 for website design.
The report also recommends $1.9 million be taken from reserves and reserve funds:
- $650,000 for a roads department grader;
- $70,000 for a roads patrol truck;
- $100,000 for a roads workshop building renewal; and
- $400,000 for the roads restoration program.
“The remainder is for projects to maintain the water systems and is funded by other water reserves,” added the report.
The town has over 57 different reserves and reserve funds used for various projects that include capital replacements.
Public consultation
In efforts to gain feedback from residents, the town offered a 2025 budget survey between Sept. 26 and Oct 31.
The survey asked 13 questions related to services, funding, tax dollars and possible town improvements. It accumulated 71 participants.
Residents were asked to rate the value of services received for tax dollars, with 32% rating it poor and 19% rating it very poor.
Budget concerns
Councillor Jamie Cheyne asked why expenses for cemeteries dropped from $10,000 to $500 when there are still a few needing “a lot of work.”
“We did find that most of those expenses were from grass cutting … now parks and recreation [department] has taken over that responsibility,” Parr explained.
“I would hope maybe at some point some of this money could be put back into cemeteries to bring that level of respect back up,” Cheyne said.
He noted cemetery trees have been cut down; some sites are without fences and gates, allowing people to drive in; and a signage program was promised but not fulfilled.
Parr assured Cheyne his concerns would be taken “under advisement.”
“We will be at our next meeting providing a brief summary of … top priorities in each department,” stated chief administrative officer Rob Adams.
The first draft budget was received by council for information and passed unanimously.
The next council meeting is scheduled for Nov. 28 at 3pm.
