Greater Napanee aims to balance its 2026 budget amid rising costs

Town staff introduced a proposed $25.9 million 2026 operating and capital budget that would raise $17.33 million in taxes (a 6.93% increase), and said about half the increase reflects external bills such as the OPP and local conservation authorities.

Town staff presented a draft $25.9 million 2026 operating and capital budget to Council during two special daytime meetings on Jan. 7 and Jan. 8. The proposal would raise $17.33 million in taxes, a 6.93 per cent increase over 2025, and staff said about half of that increase comes from external bills such as the Ontario Provincial Police and local conservation authorities. Mayor Terry Richardson asked staff to protect core services, avoid adding new full-time positions and reduce the waste collection levy after provincial changes removed recycling from municipal responsibilities. Treasurer Ellen Hamel said rising expenses are driven mainly by existing wage and contract obligations rather than new hires or programs. Key points: - The draft overall budget is $25.9 million and would raise $17.33 million in taxes, a 6.93 per cent increase from 2025. - Staff said roughly half of the tax increase is attributable to external bills, including OPP billing and conservation authorities. - The budget includes no new full-time equivalents; rising costs are tied to existing cost-of-living adjustments, step increases and payroll-related benefits. - The plan adds $402,558 in operating enhancements for items including fire service needs, bylaw enforcement around encampments, new software and communications gear, and overtime for parks and recreation. - Capital spending is held at $1.22 million but priorities shift toward fire service equipment and used heavy machinery for public works. - Assessment growth is expected to soften homeowner impacts; the average tax rate increase is projected at 5.82 per cent, with a typical urban home assessed at $219,000 seeing about an $88 municipal increase to roughly $1,611, and the annual waste collection surcharge trimmed from $200 to $150 (about a $38 household impact). Summary: The draft budget aims to limit new spending while addressing contract-driven cost pressures and maintaining capital funding at last year’s level, with selected operating enhancements for emergency and municipal services. Growth in assessments is expected to offset part of the tax impact for current homeowners. Budget amendment motions are due by Feb. 6, 2026, under the province’s process, and final budget adoption is required by March 3, 2026.