The City of Sarnia's draft 2025 budget calls for an increase of nearly five per cent in municipal property taxes.
City administrators released highlights of the proposed document this week, to be reviewed in advance of budget deliberations in late November.
In the report, staff described the annual budget process as a "balancing act" that aims to "maintain affordability for residents" and deliver a "high level of service" while investing in critical infrastructure and amenities.
The draft 2025 operating budget outlines $183.8-million in spending.
"External factors impact the city’s ability to maintain and improve levels of service and critical infrastructure investments without increases to its portion of the property tax rate," staff said in a paragraph about budget challenges. "These include high inflation increasing day-to-day operational costs such as fuel and the cost of capital investments such as road resurfacing."
By deferring transfers to reserves and utilizing contingency reserves, staff said a potential 7.31 per cent increase to the city portion of the property tax bill was reduced to 4.91 per cent.
The proposal utilizes $1 million from the Operating Contingency Reserve, about $4.3 million in contributions would be deferred from the Capital Infrastructure Reserve, close to $275,000 in earned interest to the Capital Infrastructure Reserve would also be deferred and the tax stabilization reserve would be reduced $600,000.
The draft capital budget amounts to $56.8 million, and includes many significant infrastructure investments, including:
• $9.6 million on city facilities and recreation spaces including arena improvements, playground equipment replacement, and park improvements
• $4 million in road resurfacing
• $2.3 million in shoreline protection
• $3.6 million for the extension of Gladwish Drive
• $2 million in transit fleet expansion and replacement
• $2.9 million in zero-emission transit fleet upgrades
• $7.6 million in combined sewer separation to protect the water system against extreme weather events
• $6.1 million for flood mitigation
• $4.7 million in sewer/water/road reconstruction on Forsyth and Essex Streets
• $6 million watermain/force main replacement
The Sarnia Police Services Board presented its proposed 2025 budget in late August, which carried a double digit increase.
The $36.7-million document includes $500,000 in contingency funding for the development of a new police facility.
Prior to any cuts, the tax hike would increase the city portion of the tax bill -- for those living inside the transit area -- by about $50 per $100,000 of residential assessment. A public input and grant session will be held during Sarnia council's regular meeting on November 18.
Council will consider any potential amendments during budget deliberations on November 26 at 9 a.m.
Both meetings will be held electronically.
Under a new city budget-setting process, Mayor Mike Bradley can use strong mayor powers to veto any amendment made by council within 10-days.
Any veto though, could be overridden by a two-thirds vote of council.
The City of Sarnia's 2025 budget overview can be found here.