ERIN – Town staff presented the 2026 draft budget to Erin council on Nov. 27.
The budget includes a proposed 2.5 per cent tax increase with a total operating budget of $10,525,788 and capital budget of $8,918,361.
The proposed budget will allow the town to maintain its current level of service, but it will preclude increases or additional services next year.
Town CAO Rob Adams told council that staff took “a very prudent and disciplined approach to this year’s budget” due to economic slowdowns and reduced growth in new housing starts.
“In a municipality that was preparing and facing a tremendous amount of growth, this sudden change has caused us to have to reflect and make adjustments accordingly,” said Adams.
To keep the tax increase low, staff proposed using funds from the town’s rate stabilization reserve.
Next year’s budget will focus on cost containment, service stability and long-term financial sustainability, officials say.
Capital projects, expenses
Staff outlined capital projects and expenses by department in the proposed budget, including funding sources.
The town’s communications department will undergo an exterior town hall electronic sign replacement, funded through taxation, at a cost of $40,000.
Community services will boast capital spending of $48,000 for town hall renovations, tools and other improvements, all funded through taxation.
The economic development department has one capital expense planned for 2026: wayfinding signs for downtown. This will cost the town $42,000 with 70% funded through taxation and 30% through grants.
The information and technology department proposes capital spending of $148,361 for projects such as website modernization, purchasing computer hardware and software and more. These will be funded through taxation and reserves.
Fire and emergency services is projected to spend nearly $750,000, with big-ticket expenses such as a replacement pumper truck, gear and station renovations. These will be funded through taxation, reserves and reserve funds.
The roads department will spend $2,460,000 on items such as bridge and culvert rehabilitation ($1 million), road restoration ($650,000) and a single-axle snowplow ($400,000). These will be funded though taxation, reserves, reserve funds and development charges.
The water system department will eat up most of the capital budget, with total expenditures of $5,440,000. The cost of water services for new residents is expected to cost $5 million and will be funded through development charges.
Deferred projects
To save money, Adams told council that staff elected to defer three capital projects:
- replacement of municipal fleet vehicles;
- HVAC replacement at town hall; and
- installation of security cameras at municipal facilities.
“We’ve gone through this budget with a fine-tooth comb. In fact, we’re at the point where moving any less than what’s proposed would be a real challenge for the municipality,” said Adams.
“Staff have knocked at least a million and a half dollars out of what was the proposed budget.”
‘A year of maintenance’
Councillor Cathy Aylard said 2025 “was a huge investment year, so much was accomplished … it really was a tremendous investment year in the future of our town.
“Now unfortunately, the economy has turned and we are looking at 2026 in a completely different economy. I’m looking at 2026 as a year of maintenance.”
Aylard thanked staff for the report, but said there appears to be a gap in information.
“It’s not detailed enough. For the ask we need specific dollar investments associated with each one [department] so we can prioritize them,” said Aylard.
“And we need metrics associated with them.”
Councillor Jamie Cheyne echoed these statements and said that if council dips into the tax stabilization reserve, the reserve will be left at a “sad number” by December of 2026.
The draft budget proposes using $339,728 from the tax stabilization reserve, leaving just over $50,000 remaining at the end of next year.
“There’s still a lot of work to do. A 2.5% increase sounds good on the surface, but dipping into our tax stabilization reserves doesn’t sit well with me,” said Aylard.
“We have to keep the increase to a minimum and without a reliance on [that] reserve.”
Aylard told staff they needed to “go back at it.”
“It is difficult to do everything but we really do have a good, strong staff,” said councillor Bridget Ryan.
“I think with the cooperation of staff and council [we’re] looking at ways where we can save.”
