With a minimum amount of debate, city council yesterday (Monday) gave preliminary approval to the city’s draft 2026 budget that will see an increase in the range of six per cent in the municipal tax levy.
This year city ratepayers were hit with a 3.93 per cent increase when the final 2025 budget was approved on Jan. 13.
Mayor Joe Preston praised Adam Boylan, Director of Financial Services, for his efforts and those of department heads for what he described as team budgeting.
Boylan noted, “Overall, the 2026 budget maintains St. Thomas’s position as one of the more affordable municipalities in the province, though it should be acknowledged that the plan does not fully address the city’s longer-term capital and reserve requirements.”
One of Boylan’s cautionary flags is related to the city’s reserve funds.
“Staff estimate that by the end of 2025, the city will hold nearly $47 million in uncommitted reserves. Uncommitted reserves represent the portion of actual reserve balances not already allocated through prior council decisions, legislative requirements, or to approved capital projects, and they provide the most accurate picture of the funding available to address emerging needs.”
However, at the end of next year, the city is projected to have $28 million in total reserves across all categories.
Boylan noted the city holds less in reserves than many comparative communities.
Council members will review the budget one more time at next Monday’s meeting.
Written by Ian McCallum
