Draft budget outlines tax levy increase, staffing changes and use of reserves
SMITHS FALLS — Council approved the third draft of Smiths Falls’ 2026 operating budget Monday, Feb 2 advancing a plan that includes a four per cent tax levy increase, the removal of a proposed staff position, and the use of reserves to fund a major roof replacement.
The draft reflects changes made after staff said they were unable to find additional savings without affecting service levels. A proposed Locate Permit Technician position, budgeted at $85,000, was removed as part of that process.
Council also approved funding the town’s $50,000 contribution toward the RMEO roof project as a one-time expense from the tax stabilization reserve, avoiding further levy increases or service reductions.
For the average household, the approved levy increase represents about $136 more in municipal taxes for 2026. Residents are also expected to see an estimated $64 increase related to water and wastewater rates, based on previously approved increases of 5.5 per cent for water and 3.5 per cent for wastewater.
Staff said the town reduced initial budget pressures of roughly 8.3 per cent down to four per cent through revisions made since budget discussions began in December.
During the meeting, council also confirmed that the town continues to work with residents who are struggling to keep up with property taxes. Coun. Peter McKenna asked how the municipality supports people facing financial hardship.
Director of Corporate Services/Treasurer Paul Dowber said residents who reach out and explain their circumstances can enter into payment arrangements that allow them to catch up on outstanding taxes over a two-year period while remaining current on new tax obligations. He said the approach has been successful, with more residents coming forward to clear balances.
McKenna said the willingness to work with residents sends an important message to the community.
Economic Development
CAO Malcolm Morris provided a detailed breakdown of the Economic Development and Tourism budget after questions were raised about its overall size. Morris said the nearly $894,000 budget envelope covers several distinct functions, with about $230,000 dedicated to core economic development activities. The remainder is allocated to communications and marketing, tourism, and Heritage House Museum operations.
Morris said organizational realignment shifted community-focused programs and events, such as Canada Day and Celebration of Lights, into Community Services, while tourism-related events remained within the tourism budget. He noted the overall events budget increased by $5,000 compared to 2025 and that all events will continue, though delivered differently.
With council’s approval, the operating budget will proceed to the final reading at the Feb. 9 council meeting.
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