Proposed municipal budget increase sits at 3.64 per cent

Jeff Helsdon, Local Journalism Initiative Reporter

The first draft of the town’s 2026 budget is sitting at a 1.8 per cent hike, plus a retroactive court-mandated policing increase, for a total tax increase of 3.64 per cent.

If approved as presented, the budget will be 1.12 per cent lower than the 2025 budget. For an average home assessed at $243,000, this means an increase of approximately $22.36 quarterly or $89.42 on the town portion of the annual tax bill.

“Our goal is to always balance affordability for residents with the need to invest in critical infrastructure and services,” said Mayor Deb Gilvesy. “This proposed increase reflects higher policing costs, mainly due to court-mandated retroactive pay.”

The 2026 budget also marks the first completed under the changes with Tillsonburg becoming one of the municipalities with strong mayor powers mandated from the province.

For the budget, this means a shift from the traditional format that saw all of council working on the budget to the mayor working with staff, drafting the budget, and then it being open to council revisions.

The town’s initial draft called for an eight per cent increase, but staff worked with the mayor to identify $1.43 million in changes to reduce the impact on taxpayers while continuing to meet the town’s infrastructure obligations. Rising statutory cost increases, including CPP and EI, continue to place additional pressure on the municipal operating budget, outpacing the rate of inflation.

“We know residents expect value for their tax dollars however it is still important that our infrastructure is renewed at time of renewal to avoid large tax increases in the future,” adds Gilvesy. “This budget positions Tillsonburg competitively within the region and ensures we can deliver essential services and strategic projects.”

The impact of the court-mandated settlement with the OPP would have been a more than 17 per cent increase for municipalities, until the province intervened and reduced the increase to 1.4 per cent. Provincial assistance was also provided last year, and brought the increase down to 0.7 per cent.

Gilvesy pointed out that OPP costs are still more efficient than those of municipal forces. Many surrounding municipalities with municipal forces pay a much larger percentage of their budget for policing. The services that the OPP provide, such as ‘no borders’ investigative support, intelligence support, and specialized response teams, are a benefit to the community at no additional cost. Municipalities with municipal forces are billed for some of these services.

“From my understanding, we are done with the court-mandated retro pay,” Gilvesy explained. “That being said, the OPP’s contract with the province expires on Dec. 31, 2026, so there’s going to be a new contract.”

CAO Kyle Pratt emphasized the importance of long-term planning, which was evident in the budget.

“Municipalities across Ontario are facing rising costs and aging infrastructure,” says Pratt. “This budget reflects our commitment to responsible investment and operational excellence, ensuring Tillsonburg remains a vibrant and sustainable community.”

Budget details

The proposed 2026 municipal budget totals $43.5 million, with $9.8 million allocated to capital projects

Highlights of the 2026 capital budget include:

• Cranberry Line – reconstruction completion

• Rokeby Road – reconstruction completion

• Completion of Kinsmen Pedestrian Bridge rehabilitation

• Significant investment to Lake Lisgar, including cleaning and maintenance to Hawkins Bridge, silt removal, repairs and new decking at Gibson House, as well as a new perimeter fence at the water park

• Annandale House upgrades, new elevator and kitchen

• Park and sports field updates and refurbishments

• Clock tower refurbishment

• Aging critical equipment replacement at the Tillsonburg Community Centre

• Three new pickleball courts (funded 90 per cent from Development Charges)at a to-be-announced location

• Phase 1 of Customer Service Centre renovations

“This budget reflects a balanced approach, investing in infrastructure, and ensuring we have the resources to meet evolving needs while staying aligned with our strategic plan”, Pratt said.

“There’s no new significant projects but a lot of smaller projects that deal with our asset management plan,” Gilvesy said. “There is a focus on the lake because we have to renew infrastructure there.

Departmental business plan highlights include:

• Continued implementation of the 2021–2030 Community Strategic Plan

• Advancing the Infrastructure Renewal Program

• Ongoing healthcare and physician recruitment efforts

• Strengthened asset management practices

• Supporting economic growth through strategic land sales to build on recent industrial investment and help fund the final phase of the VIP Phase II lands

Residents are encouraged to review the proposed 2026 budget and watch the upcoming Council meeting on Wednesday, Jan. 7, at 9 a.m. The meeting will be available in person and via livestream, making it easy for the community to stay informed about how tax dollars are being invested.

“We want residents to have access to clear information and see the decision-making process firsthand,” Gilvesy said. “Your awareness and understanding help strengthen transparency and trust in local government.”

The new budget process

Work on the budget started in the summer, with the mayor sending out an e-mail to council, asking for input on capital project suggestions. Gilvesy then sent staff these requests, plus hers, and a target for the budget. The mayor began reviewing the budget in November, working toward finalizing the draft document. It was provided to council before being released to the public on Jan. 2.

Starting with the budget meeting on Jan. 7, council has 30 days to bring forward amendments. Council also has the resolution to shorten the review period by amendment. The mayor then has 10 days to veto those amendments. Council is then provided 15 days to override the vetoes, which must be done by a two-thirds majority. After the 15-day amendment period, the budget is deemed to have been adopted 15 days later.