Sarnia city councillors will discuss potential changes to the mayor's draft 2026 budget this week, which proposes a 3.1 per cent tax increase.
Mayor Mike Bradley used strong mayor powers to lower the proposed hike.
Budget deliberations are scheduled to begin at 9 a.m. at Sarnia City Hall on Tuesday, November 25.
During a recent council meeting, former longtime city councillor Mike Kelch offered some words of wisdom.
"After 21 years, I learned that the truth is... simple, tough budgets can push a city backwards or they can force the kind of decisions that move it forward," he said. "So this is your chance to reset Sarnia's financial direction and make sure we're not having the same conversation next year, the year after, and beyond."
He pointed to the $6.79 million deficit for this year and referenced the need for regular staff reports to update council on the city's spending.
"That's a lot. That might be a record," he said. "When you're running a deficit that high, that's a signal that the budget that you did a year ago was way off or something terrible happened in the interim. Either way, it's not good planning."
The draft 2026 operating budget outlines $195.5 million in spending, and the draft capital budget proposes $59.9 million in investments.
Kelch said if council plans to approve a major capital project now, they need to be prepared for the debt that will follow for the next 20 to 30 years.
"That's why you need a real, honest affordability plan -- not just a project list," he said. "If the operating budget of the future can't support the long-term costs of a project... it doesn't matter how nice or how indispensable the project looks on paper. If you can't afford it, you can't afford it. Period."
This will be the last budget for the current council, as a municipal election is planned for 2026.
"Please don't leave a mess for the next one," Kelch said. "Stay focused, be clear on your priorities, please have courage and make decisions that will hold up five years from now, not five weeks from now."
During the November 17 council meeting, the city also heard from several groups seeking funding.
"Don't string people along, if you know in your heart the dollars won't be there in the end, don't do it," said Kelch.
Projects/ initiatives seeking funding include:
- The Bright's Grove library hub project (which was moved to the unfunded capital list by Mayor Mike Bradley).
- A proposed new police headquarters ($25 million for the first phase).
- A physician recruitment program is asking for $80,000 to be maintained annually.
- The Downtown Collective is seeking $100,000 to $150,000 to launch a series of beautification projects.
- A foundation for Sarnia BACE, a proposed health and community complex, is requesting a total of $10 million.
Project Coordinator Kendel Ross said $7 million over the next two years would be allocated toward the capital costs of phase one, and $3 million would be spread over five years to secure the adjacent 17 acres required for the development of phase two.
The multi-use campus is planned to be located behind the Goodwill on Michigan Avenue.
Ross said the project has already received a pledge agreement of $1 million from the Mike Weir Foundation and a letter of intent from the Lockwood Foundation for an additional $1 million.
Councillor Terry Burrell entered a successful motion to have staff review the project ahead of budget deliberations.
