Kawartha Lakes presents 2026 Proposed Budget at public meeting

Focus on affordability, infrastructure renewal and long-term financial stability

Kawartha Lakes – At a public meeting on November 12, 2025, the City presented the Mayor’s Proposed 2026 Budget, outlining the financial plan for the year ahead and the impacts on taxpayers. The budget aligns with the Long-Term Financial Plan and reflects community priorities gathered through public consultation held in August, which saw more than 500 budget responses, 1,700 visitors and over 20,750 views of the Budget 101 video series.

2026 Budget overview and tax impact

The Proposed 2026 Budget is $294 million and includes a 6.75% increase to the tax levy, which is made up of:

• 3.75% for general operations
• 2% dedicated capital levy to support long-term infrastructure needs
• 1% to address pressures in police services and transit

The budget continues to fund over 200 essential services while advancing strategic priorities identified in the 2024–2027 Strategic Plan including roads and infrastructure, health care supports, extreme weather response, affordable housing and homelessness supports, and environmental initiatives.

Mayor Elmslie commented, “This has been a difficult budget to prepare. The Budget Committee reviewed the budgets that staff had drafted in detail. The Committee, made up of Deputy Mayor MacDonald and Councillors Warren, Joyce, and Richardson, was asked to bring forward a targeted budget increase of 4% for operating, a 2% capital levy. They met that direction and went even further, recommending a 3.75% operating increase. Later, the pressures of the police services budgets became apparent, and once finalized, will be close to an additional percent. On top of that, in 2025 we had roughly $28 million in unplanned costs responding to the March ice storm and the summer’s forest fires. While we expect significant provincial support, we anticipate a shortfall of about $4 million. Once the final number is confirmed, we will return to Council with options to address it.”

Building strong reserves and financial sustainability

The 2026 Operating Budget maintains the City’s commitment to strengthening its reserves, including continued contributions to the Asset Management Reserve (approximately $21.1 million). This helps reduce reliance on borrowing money and makes sure there is enough funding to maintain and build infrastructure in the future.

Debt levels remain well within healthy limits

As of 2025, Kawartha Lakes holds $138 million in debt to support a $5.38 billion asset base. This remains well within the provincially prescribed Annual Repayment Limit. In household terms, the debt level is equivalent to a home valued at $700,000 carrying a mortgage of approximately $17,900.

A new Debt Strategy, designed to support the Long-Term Financial Plan from 2026 to 2035, will be presented to Council for approval in early 2026.

Public Engagement: “Your Budget, Your Say”

In a summer engagement on Jump In, Kawartha Lakes, the municipality’s engagement platform, residents were also asked how, given an additional 1% of the tax levy, equal to $1.6 million, they would spend it to address priorities. Top areas of spending included local support for health care, infrastructure renewal, environmental resilience, and homelessness supports as top priorities. These areas were among those that received funding in the Proposed Budget. In addition, eight percent of respondents voted for no additional spending. This request was reflected in the Mayor and Budget Committee’s directive to reduce the general operations increase. See the Jump In Project for details on all feedback and outcomes: www.jumpinkawarthalakes.ca/2026Budget

Community group presentations were made by the following to request Council support in the 2026 Budget:

Women’s Resources
Penny Chatson, Executive Director, explained that for over 30 years, Women’s Resources has been providing programs throughout Kawartha Lakes to ensure that women and their children, fleeing from abusive situations, can get the help they need to lead lives free of abuse and violence.
https://womensresources.ca/ 

Kawartha Lakes and Haliburton Integrated Immigrant Services Association (KLHIISA)
Geraldine Silva, Executive Director, noted that KLHIISA was established in 2024 to foster belonging, collaboration and assistance for immigrants and newcomers in our region, of which there are an additional 500-600 coming per year in recent years. Ms. Silva requested funding to move the not-for-profit volunteer association into a more sustainable position.https://www.klhiisa.org/ 

Next Steps in the Budget Process

Under the Strong Mayor framework, Budget deliberations are scheduled for November 25 (and 26 if needed), with Councillors able to submit proposed amendments in advance. Follow along on our YouTube channel and watch for a final copy of the budget on our webpage: www.kawarthalakes.ca/budget