ACW Council closes in on 2026 budget with five per cent tax levy increase

BY SCOTT STEPHENSON

At a special meeting held on March 13, Ashfield-Colborne-Wawanosh (ACW) Council finalized its 2026 budget following extensive discussion and debate. Ultimately, council approved a five per cent tax levy increase, with $670,889 to be drawn from the township’s general reserves to balance the budget.

 

In her introduction to the budget, Treasurer Ellen McManus described the draft as a collaborative effort across departments. “This preliminary budget was developed with input from all department heads, reflecting a collaborative effort to align future needs with available resources,” she wrote. “Our goal is to ensure the township continues to deliver essential services efficiently, effectively and responsibly while meeting the needs of our growing community.”

 

McManus also noted that preparing the 2026 budget came with significant challenges. “Preparing this year’s budget has been particularly challenging due to ongoing inflationary pressures and supply chain issues/tariffs, fixed contract increases, reductions in grant funding and the continued delay in property tax reassessment,” she explained.

 

The draft budget was initially based on a zero per cent increase to the township’s 2025 levy. If the increase were to stay at zero, with all proposed programs and capital projects fully funded, the township would face a $2.16 million deficit. Bringing that total potential deficit down requires either cuts, increased taxation or transfers from reserves.

 

The 2026 draft budget also explains recent changes to the municipal budgeting process introduced by the province. In 2025, ACW was granted Strong Mayor Powers, which require the head of council to prepare and present an annual budget by Feb. 1. If that deadline is not met, responsibility reverts to council. McManus writes that Mayor Glen McNeil opted to continue the township’s traditional collaborative approach, directing staff to prepare a recommended budget. As no mayoral budget was presented by the deadline, council retained authority over the 2026 process.

 

McNeil expressed confidence in the township’s financial position. “This is a very manageable budget today,” he said. “ACW has the lowest tax rate of any municipality in Huron County. We currently have $10 million in reserves as a result of past council’s, this council’s and staff’s financial acumen. We have increased our reserves by $7 million in the last 10 years - $4 million in the last four years.”

 

McNeil also outlined the impact of tax increases for the rest of council. “I would like to indicate that a one per cent increase in the tax rate is the equivalent to approximately $70,000,” he pointed out. “So five per cent is $350,000, and 10 per cent is $700,000.”
In 2026, ACW will receive $1,137,500 through the Ontario Municipal Partnership Fund (OMPF) in 2026, equivalent to $354 per household.

 

The budget also includes a $20,000 election-related expense under general administration, to be funded from reserves.
Council also addressed community grant funding. After determining that fully funding all requests would exceed the budget by nearly $20,000 - largely due to emergency repairs to the Menesetung Bridge - council voted to reduce contributions to all applicant groups by 39 per cent, including in-kind requests.

 

During discussions on external costs, Chief Administrative Officer Mark Becker highlighted a significant increase in Ontario Provincial Police expenses.

 

“I want to draw council’s attention to the OPP costs, which went up almost $100,000,” he said pointedly. “Just saying that out loud in case nobody’s seen it. That’s a fixed cost that we have no control over.”

 

Becker emphasized the importance of long-term planning. “I always look forward to this day each year as we set our priorities for the coming year,” he told council and staff. “As always, the draft budget has been prepared based on a zero per cent increase from the 2025 tax levy. Staff have included all the necessary capital projects in the draft budget, with the understanding that council will ultimately determine which projects will be included in the 2026 budget, which will be deferred and what amounts may be transferred from reserves.”

 

Drawing on decades of experience, Becker cautioned council against focusing too heavily on minor adjustments. “Based on my past experience, this being my 37th municipal budget and Ellen's sixth budget, I would like to encourage council to remain focused on the big picture. Small adjustments such as changing $500 here or there typically do not have a significant impact on the budget’s outcome,” he advised.

 

Becker also highlighted infrastructure needs identified in the township’s asset management plan. “Council should also keep in mind that our current asset management plan identifies an average annual capital funding requirement of $4.9 million to maintain existing infrastructure each year.”

 

Much of ACW’s budget is tied to maintaining its extensive rural road and bridge network. Public Works Superintendent Thomas McCarthy stressed the importance of ongoing investment. “The items that I’ve put in the budget are based on asset management plans that we've been working on for years…. You need to invest - I go over this every year. You’ve got 75 bridges. Bridges last 75 years. You need to do a bridge every year. You need to keep on top of your asphalt, or it will fall into disrepair… everything’s in there for a reason… I didn’t put roads in the budget that I don’t think need to be there”

 

The 2026 capital roads budget includes major projects, such as $770,000 for resurfacing Nile Road, $350,000 for demolition of the Laurier Line Bridge and $25,000 for sidewalk repairs in Dungannon. A $690,000 multi-year culvert project on Westmount Line Road is nearing completion and largely funded through grants. 

 

In an effort to reduce costs, McCarthy suggested deferring the Laurier Line Bridge demolition until 2027, a move council supported.

 

Winter maintenance costs were also a concern. Councillor Anita Snobelen pointed to rising costs and supply challenges. “I think the public needs to be aware of just how much gravel, salt and sand costs to keep the roads safe,” she said. “That’s not even including, you know, the cost of the plow, the gas, fuel and the maintenance on equipment.”

 

McCarthy confirmed that a harsh winter had increased salt and sand usage, with costs continuing to rise due to supply issues.
Council members took time to settle on an appropriate tax levy increase. Deputy-Mayor Bill Vanstone supported an increase of three to four per cent, a position echoed by councillors Anita Snobelen and Evan Hickey. Councillor Wayne Forster suggested a range of four to six per cent. 

 

Councillor Jennifer Miltenburg argued that a higher increase was necessary to address infrastructure gaps. “I’m not blaming past councils, because I was a taxpayer happily underpaying my taxes and unaware of it,” she said. “But, to me, that suggests that we are behind on doing one bridge a year… you’re either going to get higher taxes or poorer roads.” Miltenburg recommended a levy increase between five and eight per cent.

 

Councillor Curtis Blake, meanwhile, advocated for no increase, citing affordability concerns. “Families don’t have the option of just going out and making more money and being able to afford to pay those taxes,” he said.

 

McNeil proposed a range of five to seven per cent, which ultimately aligned with council’s final decision.

 

After settling on a five per cent tax levy increase and reducing the deficit to $670,889, council decided to fund it through general reserves, despite McManus’ warning about falling into such a habit.