In the first draft of the 2026 budget presented at the December 11th meeting, the operating budget requests reflected a 5.8% increase over last year, plus a proposed $4.8 million net capital expenses funded through the municipal tax levy.
More budget cuts are in the works and public input acquired at the public meetings scheduled for January 15th will also influence municipal spending over the next year.
The good news is that there has been a 2.4% rise in Cavan Monaghan’s Current Value Assessment (CVA) in 2025, which automatically translates into almost $300K more property tax revenue. This growth in CVA comes from new development, as the assessment rates have not changed and continue to be based on 2016 values. There has been no indication of when a reassessment might occur.
The biggest pressure in the operating budget is a $161,740 increase in the Fire Services budget request. This increase is driven by increased call volumes, improved dispatch and communications services and increased operational costs associated with the new Fire Hall.
The budget ask for Parks and Facilities requested an additional $95,615 and is associated with increases in operating and vehicle expenditures and increased allocations for utilities and contracted services. Another $108K increase arises from the police contract and Services contract which is indexed as well as anticipated increases in insurance costs. .
Followed by public Works looking for an additional $88,954 for vehicle maintenance, expanded winter control measures and road safety initiatives.
Among the proposed capital expenditures are specific purchases supporting road and emergency equipment and lighting improvement at Maple Leaf Park. Other expenditures represent the municipal portion of expenditures on capital projects for which federal or provincial grant funding has been approved. For example, the Millbrook Arena demolition and community hub development is supported by a federal grant of $966K with a municipal contribution of $244K. This grant will be used to fund the demolition of the facility and restore the site for a future downtown park/community hub and has a completion deadline in 2027. The rehabilitation of the Old Millbrook School is also supported by a federal grant of $511,750 with a municipal contribution of $129K with a deadline of 2026. Provincial grants have been forthcoming in support of residential growth in the community. The first grant of up to $1,272,875 will support the improvement of the infrastructure relating to the intersection of Fallis Line. This project includes the extension of Fallis Line to the east and the installation of sidewalks, bike lanes and traffic signals at the intersection. Another grant of almost $13 million has been committed to fund the new Millbrook Water storage and distribution network that will support up to 750 new homes in the area around the Community Centre. Each approval has an expiry date which is not an administrative detail. Recipients must complete the project in accordance with the terms of the funding proposal, including meeting its deadline, before the funds are released. In the meantime, projects are financed internally.
Other items captured in the capital budget are not expenditures as much as they are transfers to reserves which act like savings accounts to fund future capital projects. The largest item in the capital budget is not an expenditure is a transfer to the Asset Replacement Reserve which in this first draft is penciled in at $3,275,155. This account is a regulatory requirement and is coming under increased scrutiny by the province. Each year Council sets aside funds in the budget process to build up this account, which strengthens the municipality’s ability to maintain and replace critical municipal infrastructure. For more information about reserves, see story p 6.
The public is encouraged to attend the public budget meeting scheduled for January 15th at 1pm and 5pm at the municipal office. KG