Rideau Lakes council trims tax hike to 5.78%, avoids new borrowing in revised budget
LAURIE WEIR
Township council will proceed with a leaner 2025 budget that avoids new borrowing for general capital and holds the municipal tax rate increase to 5.78 per cent — a move council members called a hard-earned win after months of revisions, last-minute funding shifts and staff negotiation.
The final tax-supported budget — set for formal approval on May 5 — reflects several changes since the first draft was presented in December. Originally, staff warned that fully funding the township’s needs without borrowing would require a tax hike of more than 14 per cent.
“We went through it again and again,” said acting treasurer Dave Schur during the April 28 meeting of the Municipal Services Committee. “This final version is down to a 5.78 per cent tax increase, and we’ve eliminated all capital borrowing except for Portland Hall and Library, which is now reduced to $480,000.”
Council unanimously supported the updated plan, which also incorporates a $401,031 surplus from 2024, used to directly reduce pressure on the 2025 levy.
For a median single-family home assessed at $211,000, the municipal portion of the tax bill will increase by $64.71. When combined with the United Counties of Leeds and Grenville’s 5.11 per cent tax rate increase, and a flat school board levy, the overall property tax increase for local residents is estimated at $110.94 annually on that median home value.
The savings came from multiple sources, including:
- Avoiding more than $1.1 million in general capital borrowing;
- A $235,000 savings on a grader by purchasing a used unit;
- A $153,500 influx from tax sale forfeitures used to fund Delta demolition;
- An $84,189 WSIB rebate; and,
- Staff restructuring, project deferrals, and scaled-back capital expenses.
Portland hall’s financing was also reduced from $723,269 to $480,000, as staff negotiated a longer loan term. The total project cost is now expected to land just above $2.5 million — slightly below early estimates.
Unexpected costs such as a $15,000 by-election in June to fill the vacant council seat in the South Elmsley ward, road resurfacing tender overruns, and a few small additions — including a new crossing guard and street cameras — were absorbed without triggering further borrowing.
Despite holding the line on spending, Rideau Lakes continues to experience steady growth. MPAC data shows a 1.38 per cent increase in net assessment — largely from residential development, which added nearly $36 million in new taxable value.
Still, assessments remain based on 2016 values due to the province’s ongoing freeze, meaning municipalities have limited flexibility to raise revenue without increasing tax rates.
“This growth is helping us,” Schur noted. “A lot of municipalities don’t have the land or capacity to grow like we do.”
While the township avoided new debt and limited the tax increase, Schur cautioned that contributions to capital reserves remain suspended, putting pressure on the township’s long-term asset management strategy.
“We’re still behind,” he said. “We’re saving on interest payments now, but eventually we have to get back to building our reserves. That’s the goal for future budgets.”
Some councillors expressed frustration that road projects were deferred due to cost. Including them would have pushed the tax hike up by another six per cent.
“We’ve got roads in rough shape,” said Coun. Linda Carr. “But I get it — this was about what we could afford.”
Council also debated a handful of eleventh-hour amendments, including:
- $1 placeholder for Morton Community Centre’s air conditioning project, to allow matching funds once full quotes are received.
- $1 placeholder for planning work at the Gallagher property in Portland, where some councillors want to investigate converting the existing structure into public washrooms or a harbormaster’s office.
A proposed $60,000 addition to fund engineering work for a future parking lot in Delta — following the demolition of the former maple syrup factory — was defeated in a recorded vote.
Deputy Mayor Paula Banks, who proposed the amendment, said the community deserves to see movement on the site.
“If we’re going to tear it down, let’s not leave it sitting there for two years,” she said. “Let’s show residents of Delta we’re doing something.”
Staff have also committed to starting the 2026 budget process earlier — potentially in November — to allow more flexibility with year-end planning and potential surplus allocations.
A full budget breakdown, including capital projects, operating expenses, and departmental allocations, is included in MSC Report FIN-2025-07 and accompanying attachments and can be viewed on the township’s website along with a video recording of the debate that took place.
