JASON SETNYK
Cornwall City Council opened three days of budget meetings December 16 at City Hall, with Mayor Justin Towndale introducing a revamped process under Ontario’s “strong mayor” framework before staff delved into the draft 2026 General Taxation Budget.
Towndale opened with a brief preface before the presentation. “It’s a tough budget year — there’s no secret. Many municipalities are facing a budget crunch. We’re seeing rising costs across the board. We’re not immune to inflation,” he said, framing the budget as a response to cost pressures, service expectations, aging infrastructure, and added that police funding remains a factor. He said the city “needs to change the way we do business.”
The Mayor said the structure gives council time to absorb the numbers before debating changes in the new year. “We’re going to receive information from our various departments first, and then motions and resolutions will be presented on January 7,” he said, adding the deeper dive was “insightful” as he met with department heads and requested added detail.
Financial Services General Manager and Treasurer Tracey Bailey told council the draft 2026 operating budget is $260 million, with a $17.6 million capital plan. The budget is built on a $102.56 million municipal levy-up $8.16 million from 2025-reflecting a 5.32 per cent increase with policing included and 3.89 per cent excluding police, in line with Towndale’s direction. For an average home assessed at $176,700, the municipal increase would be $163.16 (5.25 per cent).
Pressed by Councillor Carilyne Hébert, Bailey explained that senior staff and departments made reductions before the budget ever reached council, noting roughly $16 million was removed from staff submissions. She said those early adjustments were aimed at keeping the draft within the mayor’s direction, and that councillors can dig into an itemized list during the departmental presentations.
Bailey said Cornwall’s total assessed value is projected to rise by about $132.8 million to roughly $4.32 billion in 2026, driven mainly by growth. The presentation shows gains of $29.6 million in residential assessment, $5.6 million in new multi-residential, and $96.8 million in commercial assessment.
Bailey said the city is not budgeting to fund any 2026 capital projects through debt. Instead, the plan relies mainly on government funding and reserves, with only $282,200 of capital funded from the tax base. Development charges are budgeted at $97,500, tied to the paramedic station expansion design.
She also outlined workforce changes, describing a net reduction of 33 full-time positions, including 23 positions removed, a realignment at Glen Stor Dun Lodge with no net job losses, and six new positions added in “critical areas.” Bailey said the only service change flagged at a high level was the cancellation of the Express Route for transit, with more detail expected when that department presents.
Debt and reserves drew pointed questions from councillors. Bailey said the city’s debt obligations are estimated at about $58.8 million by the end of 2025, and the city expects to borrow $45.2 million during 2026, requiring annual payments of about $11.8 million. Cornwall follows a self-imposed policy that annual debt repayment should not exceed 10 per cent of own-source revenue, compared with the province’s 25 per cent ceiling. Bailey said the city remains well under the provincial limit but is projected to exceed the city’s self-imposed 10 per cent limit in 2027.
CAO Tim Mills reinforced the concern about debt costs rising quickly, noting council has been warned about the challenges ahead. “If MPAC doesn’t adjust, and we don’t make some difficult decisions at the table, then it’s an even bigger challenge,” he said, as staff pointed to rising borrowing charges in the years ahead.
Bailey also flagged reserve health as a constraint, noting operating reserves are below target largely because the city’s tax stabilization reserve is well under its intended level. She framed that as a resilience issue-less cushion for shocks-at a time when inflation and cost volatility are already stressing municipal budgets.
Councillor Dean Hollingsworth questioned the arts centre budget, saying he had heard the project would cost about $13 million, but the debt schedule appeared to show $14 million in borrowing. He also referenced about $2 million in fundraising and asked staff to reconcile the figures. “How much is the art centre costing us?… something’s missing,” he said, adding that “typically you don’t borrow more money than you need.” Bailey said staff would take the question away and report back during the recreation and facilities presentation.
Councillors also raised concerns about the province’s delayed reassessment cycle. Bailey said 2026 taxes will continue to be based on MPAC’s fully phased-in January 1, 2016 values, a lag she said is overdue and creates inequities between property types as market prices rise.
Next, Bailey said the 2026 general taxation submission continues to fund “community partners” that deliver programs and services in Cornwall, with the budget presentation showing about $5 million in proposed 2026 support (including a Municipal Grants Program budget of $170,000). The largest line items shown are the Cornwall Public Library ($2.64M), Eastern Ontario Health Unit ($926K), and Raisin Region Conservation Authority ($629K), along with allocations such as the Cornwall Regional Airport ($110K), SD&G Historical Society ($168.6K), and medical recruitment/scholarships ($200K).
On discretionary nonprofit requests, Bailey said the mayor’s municipal funding intake drew 28 applications, with three approved for a combined $70,000, and that the funding is included in the draft budget. She added that the full applicant list (approved and not approved) is compiled for transparency in the budget appendices. Councillor Sarah Good said at least one organization had already contacted her after being left out of the proposed funding list, and she asked whether council would have access to the full submissions.
On community input, Bailey said the city received 406 responses to a general budget survey and 73 student responses, with themes including housing, safety, infrastructure, cutting red tape, and requests for more affordable recreation and better transit. Cornwall also held a Resident Café to gather feedback.
Under the strong mayor rules, the mayor may veto approved amendments, and council can override a veto with a two-thirds vote at a January 29 meeting. Councillor Maurice Dupelle was absent from the first meeting.
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