Perth South begins 2026 budget deliberations with proposed 7.5% tax increase

Perth South council has begun deliberations on its 2026 draft budget, which proposes a 7.5 per cent increase to the municipal – township and county – portion of the tax bill for local property owners.

Council reviewed the draft operating and capital budgets during a special meeting April 2, marking the first step in a budget process that will continue over the coming weeks before a final budget is adopted later this spring. According to chief administrative officer (CAO) Will Jacques, the township’s 2026 budget timeline differs from some neighbouring municipalities due to Perth South’s decision not to use strong mayor powers, allowing the entire council to participate collaboratively in the process.

“Mayor (Sue) Orr made the decision in the fall of 2025 to include all of council in the budget process, and therefore not proceed using strong mayor powers,” Jacques said, noting that decision meant council was not able to formally begin budget deliberations until after Feb. 1. “We had hoped to commence the process closer to Feb. 1, but we experienced some scheduling challenges which slightly delayed our process.”

The draft budget includes a proposed levy increase of $499,500, representing a 10.65 per cent increase over 2025. Factoring in assessment growth of $13,497,000, the resulting tax rate increase for the township portion of the tax bill is estimated at 3.92 per cent, translating to an overall increase of about 7.5 per cent on the final tax bill inclusive of both the township and county portions. Perth County council approved a 2026 budget with an 8.75 per cent levy increase back in February.

Based on those estimates, the impact on a property assessed at the average 2016 value of $500,000 would be approximately $195.96 for residential properties, $49 for farmland and $244.38 for commercial properties.

The township’s draft operating budget includes increases in several departments, including general government, protective services and transportation services.

According to the draft operating budget document, overall general government spending is projected to increase in 2026, driven in part by rising salary and benefit costs, technology expenses, continued investment in municipal administration and services and costs related to the 2026 municipal election. In total, the general government budget is proposed at roughly $630,000, up by more than $185,000 over 2025.

Protective services costs, including policing, fire services and contributions to conservation authorities, also represent a significant portion of the township’s operating expenditures – proposed at nearly $1.7 million, an increase by almost $100,000 over 2025.

Transportation services continue to account for a substantial share of municipal spending, including road maintenance, winter control and equipment-related costs needed to maintain the township’s road network. The transportation services budget is proposed at nearly $2.6 million, up from nearly $2.3 million budgeted in 2025.

Perth South’s draft 2026 capital budget includes 16 capital projects and purchases this year, totalling approximately $5.24 million funded through a combination of reserves, grants and tax levy contributions.

Planned capital spending includes road reconstruction and rehabilitation projects, equipment purchases and information-technology investments such as server replacement and records-management improvements.

Among the larger road projects proposed for 2026 are improvements to Road 134/Station Road, Perth Line 15 (Perth Road 122 to Perth Road 130), Perth Line 16 (Perth Road 130 to Perth Road 122) and Perth Line 14 between Perth Road 130 and Perth Road 125, along with work on Bender Drive.

The capital plan also includes investments in municipal technology and administrative infrastructure, including upgrades intended to improve efficiency and service delivery.

Jacques said council has discussed implementing a consistent approach to reserve transfers and capital levy contributions to avoid large fluctuations in the tax rate from year to year and support long-term infrastructure sustainability.

“As part of the budget process, council has also discussed moving forward on a plan to provide consistent reserve transfers and capital levy contributions to keep rates from fluctuating greatly from year to year, and to provide for greater sustainability for the township’s infrastructure,” Jacques said.

Council will continue reviewing the draft budget at its April 21 meeting before considering adoption later this year. Council comments and any proposed amendments to the draft budget will be incorporated as deliberations continue.