County Approves Budget Deal to Offset Unexpected OPP Cost Increase

Prince Edward County council has finalized its 2026 budget after reaching a compromise to absorb an unexpected spike in policing costs without raising taxes further.

The challenge emerged after the province announced an 11 per cent increase in Ontario Provincial Police (OPP) costs, significantly higher than the six per cent increase originally anticipated. The adjustment added roughly $390,000 to the County’s budget after council had already completed its initial deliberations.

Rather than revisiting the entire budget or increasing the tax rate, council opted to draw from several reserve funds to cover the shortfall.

The approved budget maintains a municipal tax increase of 5.32 per cent, or 3.59 per cent when accounting for assessment growth. To bridge the funding gap, council allocated $143,000 from the climate reserve, $150,000 from the Municipal Accommodations Tax (MAT) reserve, and nearly $97,000 from the waste diversion reserve.

Officials noted that the tax stabilization reserve typically used in situations like this currently has limited funds available. While the climate reserve will now be depleted, the MAT fund is expected to be replenished over time, and the waste diversion reserve will still retain a balance with additional funds anticipated.

Mayor Steve Ferguson described the decision as a practical solution that avoids reopening the entire budget process. He emphasized that timely approval was important to keep municipal projects, tenders, and deadlines on track.

Council formally adopted the budget during Tuesday night’s meeting, marking the end of weeks of financial planning and discussion.