ERIN – It wasn’t a unanimous decision, but town council here has approved the 2026 budget with a tax rate increase of 3.8 per cent – up from the 2.5% originally proposed.
The decision came during a Dec. 11 meeting of Erin council.
“The budget at 3.8% is keeping within the range of similar municipalities within the county,” said CAO Rob Adams.
“It offers a fiscally responsible budget while still preparing us for the growth and the infrastructure that continues to be built in the community.”
The budget calls for a $139,055 increase in the total tax levy, which means an additional $12 in taxes per $100,000 of assessment for the average Erin homeowner.
“That equates to about a cup of coffee per week, so the increase, while significant, is very minor when spread out across the entire year for an average residential property,” said Adams.
The tax increase also means less money will be taken from the town’s tax stabilization fund reserve, something councillor Cathy Aylard argued for during the meeting.
“I’m still not comfortable with this budget,” said Aylard. “It’s hard to explain.
“We’re not hiring anybody new and we’re not supplying any new services next year, so it’s hard to explain a tax increase and then dipping into reserves.”
She added, “Using any of the tax stabilization reserves really represents that we’re overspending.”
The original budget proposal suggested using $339,728 in tax rate stabilization funds, leaving just $50,154 in the reserve. The approved budget will see $57,099 taken from the reserve, leaving $332,783 for future use.
To cut back on costs, staff have deferred some capital projects and reduced spending in certain departments.
Operating budget cutbacks include:
- part-time salaries in the community services budget have been reduced by $80,110; and
- the communications, marketing and promotions budget has been reduced by $14,000.
Capital budget cutbacks include:
- $42,000 removed for way finding signage;
- $35,000 removed for website modernization; and
- $40,000 removed for the town hall sign.
The town’s capital budget will sit at $8.8 million for 2026 with an operating budget of $10.2 million, down from $10.5 million.
Councillor John Brennan put forth a motion to allocate use an additional $30,000 from the tax stabilization reserve to reduce the tax rate increase to 3.5%. His motion failed after a vote.
Aylard again stressed she would have liked to see no funds drawn from the reserve.
After much debate, councillor Bridget Ryan also put forth a motion.
She proposed council defer the budget decision until the new year so staff could have a better idea of year-end revenue and expenses.
This also failed as councillors agreed with Aylard, who said that would just “push the problem down the road.”
Both Aylard and Ryan voted against the budget, but it still passed 3-2, with approval from Brennan, councillor Jamie Cheyne and Mayor Michael Dehn.
