Central Frontenac Settles On 5.7% Levy Increase For 2025

Jeff Green | Apr 02, 2025

Central Frontenac Council met last Tuesday afternoon (March 25) for a final look at the 2025 budget.

At the start of the meeting, Chief Administrative Officer (CAO) Cathy Mac-Munn pointed out that at the previous budget meeting Council had instructed staff to “come back with a budget increase of between 5.5 and 6%, and staff went back over the budget, and are back
with an increase of 5.7%, in the middle of that range.”

Even before presenting the final numbers for 2025, Treasurer Michael McGovern was uneasily looking forward to 2026.

“Already in my mind, 2026 is looking like an increase of 8-11 per cent," he said. Policing cost increases will kick in, and the impact of the potential tariffs on equipment purchases could force us up more than this year.”

“Do we really need that bad news now?” asked Mayor Frances Smith.

Back to the 2025 budget, the 5.7% increase was accomplished through cuts in a number of departments, and a transfer from reserve funds, to cap the increase. But, as McGovern pointed out, the transfer from reserves of $1.5 million is $750,000 less than the transfer
from reserves that was required in 2024. McGovern projects that the reserves will end the year at about $4.4 million, about the $4 million threshold which is recommended as a minimum for a municipal budget of this size.

The main driver of the budget increase is capital costs, the operating budget is up only 2% but capital is up 19%. Among the largest of the increases overall, is an increase in the public works budget of $1.2 million, from $7.4 to $8.6 million.

The fire fighting budget is up by $653,000 and the facilities budget by $341,00, with equipment-replacing pushing those budget increases in most cases.

In order to bring the budget in line, a number of spending plans were put on hold or scrapped altogether. The largest one being held off is the replacement of a bridge on Henderson Road, at a projected cost of $610,000.

Other cuts include: Hinchinbrooke salt dome replacement $120,000, Sharbot Lake Causeway bridge $90,000, a new position of Deputy Building Inspector at $55,000 (partial year), Sharbot Lake Public School site environmental assessment at $65,000, and engineering to
make grant-ready projects at $70,000.

The impact of the levy increase on property tax bills for residents will be mitigated by 1.2% due to new construction coming on to the tax rolls. This will bring the impact to 4.5% on the tax rate for township funded services. Frontenac County tax bills have three components,
the local township levy, the county levy (which was up by 5.5% in 2025) and the education levy, which is set by the province. As in recent years, the education levy did not change this year. The net increase in the bills being sent to Central Frontenac ratepayers will be a 3.9%
increase.

Councillor Duncan McGregor suggested that Council take another $200,000 from reserves in order to bring the impact of the budget on existing ratepayers to about 2.5%.

“A lot of people are struggling, and have not seen increases in their own wages this year but have seen all of their costs go up,” he said. “We would still be taking less from reserves than we did last year, which was our goal.”

“It kind of defeats the purpose we have been discussing, of keeping money in reserves,” said Mayor Smith.

“I understand what Councillor McGregor is saying, and I agree with him, but it would be kicking the can down the road. To my mind it is better to increase taxes by the same amount for two years, than by 2% one year and 10% the next. We are facing an 8% increase next year already, as the treasurer told us. I would rather we ensure we built up reserves for what we are facing next year. I think we have to face that reality,” said Councillo Susan Irwin, who was at the meeting on Zoom.

People's wages and pensions are not going up to keep up with our tax increases,” added McGregor. I don’t know how we raise taxes in a community where people do not have the money to pay it.”

“You cut services. That’s the only way,” said Mayor Smith.

“There will be an opportunity to look at service delivery when we do our organisational review later this year,” said CAO MacMunn.

With McGregor's proposal not receiving any traction, Councillor Philip Smith thanked staff for their efforts.

“We set some goal posts, and you hit the main ones, bring the increase down and maintain 4 million in reserves,” he said.