2026 Preliminary Draft Capital Budget Report

Staff brought forward the 2026 Preliminary Draft Capital Budget for Council on Monday, September 15 for review before moving forward in the budget process. Some key projects in the Proposed Capital Budget are:

• A New Housing Action Plan
• An Enterprise Resource Planning system
• Sportsplex Grounds Plan and Lands Site Development Study
• Active Transportation Intersection Improvements, Sidewalk/Wayfinding and Signage Improvements
• Major rehabilitation of Bridge 1-E (Seventh Line, former Eramosa Township)
• Removal, without replacement and construction of turnarounds at Bridge 30-P (Sideroad 5, former Pilkington Township)
• Detailed engineering design and permitting to replace Bridge 29-WG (Sideroad 15, former West Garafraxa Township) and Bridge 28-P (Sideroad 11, former Pilkington Township)
• Noah Road Culverts 4-N and 7-N
• Major Pavement Rehabilitation on Sixth Line E. – WR21 to SR 10
• Full Reconstruction of Smith Street from David St. to Henderson St.
• Douglas Crescent watermain replacement
• Water meter replacement program
• Operations centre construction
• Belwood Hall Renovation
• Sportsplex Roof A & E (Pool Roof and Streetscape) Replacements

On October 27, 2025, Staff brought forward the 2026 Staff Draft Budget Update for information.

On September 2, 2025, Mayoral Direction number 2025-001 was issued, directing the Chief Administrative Officer, the Township Managing Director of Corporate Services, and the Treasurer to prepare a 2026 staff budget in accordance with Staff reports COR2025-30 and COR2025-40. Further direction suggested the 2026 staff budget update report prepared in accordance with this directive be considered by the Mayor in October 2025 and subsequently issued as the Mayor's draft budget for public feedback and engagement, inclusive of any amendments made by the Mayor to the staff budget update.

Staff are in the process of developing the 2026 Staff Draft Budget utilizing the following points for consideration:

• Maintain a 2026 tax rate increase equal to or less than 2.5% excluding asset and termite management allocations.
• That staff maintain an increase equivalent to a 2% increase in taxation during the 2026 Draft Budget process to generate the required funds to mitigate the funding gap within specific asset types identified in the Township's 2025 Asset Management Plan.
• That staff maintain funding in the 2026 Draft Budget process to ensure sufficient Termite Management program funding.
• Assume 2026 assessment growth equal to 2.5%, to be used to fund budget increases considered to be growth in nature, with assessment growth figures to be updated in November, when received.
• Increase fees and charges for 2026 by 2.5%, other than where pressure on rates indicates an alternate rate change.
• Maintain a 3-year funding average of approximately $1,900,000 in growth related capital projects to be funded by development charges within the Draft Ten Year Capital Forecast.
• Allocate the following funding to the Draft Capital Budget:
  • $7,050,000 in combined General Capital Reserve, Canada Community-Building Fund (CCBF), OLG Funds, and Ontario Community Infrastructure Fund (OCIF).
  • An increase in funding to the tax-supported Equipment, Vehicle, and Facility Replacement Reserves to support budgetary needs.