Early financial pressures and rising costs shape the Smiths Falls 2026 budget
SMITHS FALLS — The Town of Smiths Falls has opened its 2026 budget process, with early financial pressures projected at roughly $1.7 million heading into next year.
Treasurer Paul Dowber presented the 2026 Budget Guidelines to the Smiths Falls council on Oct. 27. He began by stressing that the document is preliminary.
“Tonight, we just wanted to have a bit of an introduction for the budget process for 2026,” Dowber said. “Some of the information … can help council make some decisions once we actually come back with a bit more of a proposal.”
Dowber noted that several slides from last year’s presentation were repeated to reinforce the process for council and the public.
“The reason that I’m coming back with those slides again is not to say that council has forgotten since last year,” he said, “but more to remind the public as to what the process looks like, and just make sure that the public is informed.”
Dowber outlined several financial pressures that could affect the 2026 operating budget, including:
- A projected $400,000 decrease in investment revenue, due to falling interest rates and lower reserve balances.
- An expected $450,000 reduction in supplemental taxation tied to slower building activity.
- A $150,000 increase in shared service costs from Lanark County (draft only at this point).
- A potential $560,000 increase in debt servicing costs, most of it related to water and wastewater projects.
- A projected 15 per cent increase to municipal insurance premiums.
Dowber said that the numbers are not a recommendation.
“I want to make sure that the public understands … we are not coming forward with a proposal,” he said. “If we were to say ‘yeah, let’s do them all,’ it would look something like an eight per cent levy increase.”
Smiths Falls will also see a reduction in provincial infrastructure funding through the Ontario Community Infrastructure Fund (OCIF).
“It’s a 10 per cent decrease, which is the most that it can either decrease or increase,” Dowber explained. The change is based on provincial calculations that rank municipalities by financial need, using factors including household income and infrastructure replacement value.
Dowber told council the town could see another OCIF reduction in 2027.
Dowber confirmed that budget preparation now falls under Ontario’s strong mayor legislation.
“There has been a change through the Strong Mayors Act,” Dowber said. “Public input and feedback is actively solicited. Now, it has been in Smiths Falls for a while, but in the Strong Mayor’s Act, it’s actually identified that it must happen.”
Coun. Jay Brennan thanked staff for laying out the roadmap.
“That’s a great starting point, and I appreciate the information,” Brennan said. “We’ll be talking a lot more about the budget in the next couple of months.”
Chief administrative officer Malcolm Morris added context about the number of planning documents that guide spending decisions, noting that long-term master plans feed into the asset management plan, which in turn drives the capital budget.
The budget schedule included:
- Nov. 24, 2025: first draft capital budget
- Dec. 8, 2025: first draft operating budget
- December: public consultation survey released
- February 2026: final budget bylaw expected for adoption
Residents will be able to participate through an online survey, with results returning to council in January.
Related article: Smiths Falls budget to follow strong mayor rules in 2026.
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