Rideau Lakes budget debate covers taxes, grants and recreation projects
RIDEAU LAKES — After more than four hours of debate, recorded votes and procedural back-and-forth, council in Rideau Lakes Township worked through another round of budget deliberations on Jan. 26, grappling with how to rein in a proposed tax increase while facing rising costs and limited flexibility.
The budget process began with a proposed municipal levy increase of just over 9 per cent, which has since been reduced through a series of staff adjustments and council decisions.
The proposed levy increase now sits at 4.9 per cent, still above inflation, several discretionary items were cut or left intact after close votes, and the budget is not yet final.
Under Ontario’s strong mayor legislation, the mayor still holds final authority over the budget, meaning further changes remain possible.
What you need to know first
The draft budget includes a municipal levy increase of about 4.9 per cent, compared to an inflation rate cited during debate of roughly 2.2 per cent. Each one percentage point on the tax rate represents about $141,000 in revenue. Bringing the increase closer to inflation would require finding hundreds of thousands of dollars in savings.
Community grants and recreation projects dominated the discussion, and the mayor retains veto power over council-approved amendments.
The financial reality behind the debate
Treasurer Dave Schurr told council that every one percentage point on the municipal tax levy equals roughly $141,000.
That framing shaped much of the discussion. Cutting even two percentage points from the proposed increase would mean removing close to $300,000 from the budget.
Schurr cautioned that Rideau Lakes’ operating budget is already close to bare bones, with limited room to cut without affecting services.
Rideau Lakes councillors urged to submit changes before the deadline
During the discussion, Paula Banks urged councillors to submit any proposed budget reductions to the clerk before the end of the amendment window, allowing staff time to assess whether those changes are realistic.
Staff confirmed that proposals submitted before the deadline can still be reviewed and reported back to council before the budget is finalized.
Community grants remain a flashpoint
Community grants sparked one of the longest debates of the meeting, with councillors divided over whether limited tax dollars should continue supporting a growing list of community organizations.
Some councillors argued that approving one group creates pressure to fund many others, particularly in areas such as animal rescue, where council ultimately decided not to provide funding.
Others warned that removing municipal support risks losing volunteer-run events altogether.
Coun. Ron Pollard cautioned that without township funding, events such as Canada Day in Newboro could disappear if volunteers walk away.
Skate the Lake funding survives
Funding for Skate the Lake was repeatedly challenged and defended during the meeting.
Supporters described it as a signature winter attraction that depends on volunteers and carries upfront costs such as insurance and equipment maintenance.
Opponents questioned whether discretionary events should be funded during a year when council is struggling to restrain the tax increase.
After multiple votes and proposed funding changes, Skate the Lake ultimately remained in the budget at $2,000.
South Elmsley recreation projects removed
Council voted to remove funding for lighting and pickleball courts at the South Elmsley recreation site.
Concerns raised during debate included permitting uncertainty, environmental considerations, long-term operating costs and whether the projects were ready to proceed.
Several councillors said tax dollars should not be committed to projects facing unresolved regulatory hurdles.
Gallagher property roof may qualify for grant
Funding for repairs to the Gallagher property building, including the roof, was not finalized during this round of budget deliberations.
Council flagged the Gallagher property as a potential priority tied to future grant opportunities, with staff expected to bring forward additional information on costs, scope and funding options before final budget decisions are locked in and the grant window closes.
Equipment purchase was pulled from the levy
One notable budget adjustment involved a proposed wheeled piece of road equipment that was removed from the tax levy and instead approved to be funded through reserves, which currently total about $1.2 million, not including the 2025 contribution.
Dan Chant, manager of roads and drainage, identified an opportunity to secure a wheeled excavator at $344,000 and proposed paying for it through reserves rather than adding the cost to the operating budget.
The treasurer said funding this from reserves may be the best option.
By shifting the purchase off the levy, council reduced pressure on the tax rate and avoided having the item subject to the mayor’s veto under strong mayor powers.
Councillors acknowledged the move as a practical example of staff finding savings and alternative funding sources.
The mayor still holds final authority
Under Ontario’s strong mayor legislation, Mayor Arie Hoogenboom has the authority to veto council-approved budget amendments.
Council can override a mayoral veto, but only with a two-thirds majority.
That authority hovered over much of the discussion, prompting questions from some councillors about the value of prolonged debate when amendments could still be overturned.
What happens next
Councillors can still submit proposed budget amendments to the clerk before the amendment deadline.
Staff will review any submissions and assess whether the proposed savings are achievable. The mayor will then have a veto window to accept or reject council amendments.
Council may override vetoes with a two-thirds vote. Final budget adoption is expected in early March.
What to watch for
The key question now is whether councillors can identify credible savings that meaningfully reduce the tax increase without cutting services, and whether the mayor chooses to accept or veto those changes.
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