The Town of Vermilion council has approved the 2026 budget with a proposed tax increase of 2.99 per cent.
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A presentation by administration highlighted 2025 as “the beginning of change.” The team provided council with a detailed look on financials from this year and next.
Of note in 2025 for the town administration team, they welcomed a new CAO in April, a new director of corporate services in August and a new finance manager in September.
Administration first presented its proposed budget in early November before it was passed on Nov. 18. The goal is to maintain service levels and plan for the future.
“The 2026 proposed budget results in a 2.99 per cent tax increase,” said Marilyn Lavoie, director of corporate services. “This increase is required to deliver the proposed programs and services to the community and it is in alignment with the survey results to maintain the existing service levels and increase reserve transfers.”
A lowlight from the budget includes the current debt position of the town. According to the town, its debt as of Jan. 1 of this year was $9.6 million. The 2024 debt limit was $22,799,574.
“Administration is developing a debt management policy that will be brought back when it is completed,” said Lavoie. “That policy will specify the process to when the town utilizes debt, as well as implement a self-imposed debt limit to reduce the amount of debt the town has.”
The debt amounts equate to 42 per cent of the debt limit utilized and 58 per cent still available for use.
Administration also looked at some of the existing debt they could pay back.
“Administration reviewed all existing debentures for a strategy to hopefully pay off some of the loans so we could to reduce the town’s debt,” said Lavoie.
In the budget, the town highlighted a number of items, mostly local improvements they could pay back.
“That will cost about 98K, give or take. It changes every day,” she said, noting items were chosen as they have smaller amounts with only one loan carrying a penalty to prepay for $711.78.
“In the long run, it would save the town $7,639.73 in interest payments if they are paid off early.”
Levies for these improvements will still be collected and added to reserves.
“Being that most of these are local improvements, the landowners will still continue to be charged the levy for those, even though the loans are paid off,” said Lavoie. “Instead of collecting the levy from those residents and applying it towards the funding for the loan payments, it will go back into the transportation reserve.”
The debt repayment will still leave the city at its debt limit but will help save some money. Council agreed it would be fiscally responsible to pay off the loans.
“In the future, when we bring back our debt management policy and our financial reserves policy, the lump sum getting transferred into reserves from this budget the current balances will be brought back to council on how it will be distributed,” said Lavoie.
The budget will see $906,977 transferred into reserves.
Overall, the 2026 budget has a total operating revenue of $7.8 million with operating expenditures of $14.4 million, plus requisitions of $1.9 million resulting in a municipal taxation levy requirement of $8.5 million.
With the proposed 2.99 per cent increase, a residential property will see an average increase of $16 per year for every $100K of assessed value.
The 2026 capital budget has total capital revenues of $4.3 million, supporting total costs of $4,3 million.
Coun. Kellen Snelgrove expressed his support for the proposed budget.
“I would just like to commend administration for putting forward what I would describe as a responsible budget,” he said. “There is definitely areas if we really wanted to trim harder, we could, but I think we’re doing a good thing by putting money in reserves and continuing operations of this town in a way our residents expect.”
Mayor Robert Snow echoed the sentiment.
“I want to say in the last four years of being a councillor and now as mayor, I feel like this was one of the best presented budgets,” he said. “You guys were determined to keep it low. We didn’t have to push you guys on that, but it was also clear on what and where the money was going.”
Council approved the 2026 budget, accepted the operating plans for 2027-2029 and the five-year capital plan in principle.
The town is working to prepare a comprehensive budget document to post on the town’s website for public review.
Any necessary budget adjustments will be brought forward to council for decision in spring 2026, along with the mill rate bylaw.
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