Town of Erin exceeded 2025 budget by $1 million
'I looked at that ... and I wanted to cry': councillor John Brennan
ERIN – Town councillors here have raised alarm bells after a quarterly budget variance report revealed the municipality exceeded its budget by 17 per cent in the fourth quarter of 2025.
The report was shared during the April 9 meeting of council.
“Revenues and costs fluctuate over the year due to programs and seasonal needs, along with unexpected costs and events that arise,” said town treasurer Wendy Parr.
She attributed part of the deficit to lower-than-expected revenue from the building department, due to the slowdown in the housing market, and from the planning department, due to expenses from the Ontario Land Tribunal for heritage and zoning appeals.
“These are expected to conclude in 2026,” said Parr.
To address the shortfall, staff drew close to $1.06 million from the town’s tax stabilization reserve, resulting in a reserve balance of negative $29,785.
“I looked at that tax stabilization fund and I wanted to cry,” said councillor John Brennan. “We blew through a million dollars in one year. That’s scary”
Councillor Cathy Aylard echoed Brennan, telling staff “simply, we are overspending,”
“We’re not in a good position right now and this was a snowball that kept on building momentum quarter after quarter last year,” said Aylard.
“All four quarters resulted in deficits.”
Aylard introduced a motion for council to direct Parr and town CAO Rob Adams to conduct a comprehensive review of the 2026 budget to identify potential savings, efficiencies and deferrals.
“We need to be very diligent this year on where we are and where we should be,” said councillor Jamie Cheyne.
Aylard’s motion was seconded by Ryan and was approved in a unanimous vote by council.
Staff is expected to report back to council by May 15 with a recovery and control plan for 2026, with an “explicit objective to restore the total deficit and replenish the tax stabilization reserve.”
“We are already through Q1 (quarter one), we’re heading into Q2 – we need this report with corrective action,” said Aylard.
