The city’s director of finance Dan Sheridan confirmed at yesterday’s council meeting, ratepayers will face a 3.93 per cent hike to the municipal tax rate next year.
This was accomplished in spite of lower-than-expected revenue from assessment growth, resulting in another $800,000 to be found from gas tax revenue and reserves to drop the hike down from the initial 4.93 per cent figure.
Sheridan cautioned this will result in less money available for capital projects in the 2026 city budget.
Next year’s proposed levy is almost $74.5 million, up from just shy of $69 million this year, an 8.13 per cent increase.
According to the finance director’s report to council, at the beginning of next year, the city has almost $44 million in long-term debt.
Breaking that down, Valleyview Home has $1.9 million to be paid down in 2026, $1.3 million of which will be this coming year.
The city’s social services location at 423 Talbot Street has a balance of $1.2 million with a maturity date of 2037. In 2025, the payment will be $121,000.
Just over $10 million is owed on the new St. Thomas Police Services home and that also comes due in 2037. The 2025 payment is just shy of $1 million.
At 1Password Park, $7.2 million is outstanding and the loan matures in 2038. This coming year, $660,000 will be applied to that total.
The social services hub at 230 Talbot Street in the west end has an outstanding debt balance of $7.2 million which matures in 2050. This year $413,000 will be applied to that total.
Almost $6 million is outstanding in the investment loan associated with the former St. Thomas Energy acquisition of a stake in Chatham-Kent-based Entegrus. No payment is proposed for 2025.
And then a long-term debt of $10 million linked to Yarmouth Yards, the city’s new industrial park. This is related to the settlement with the Municipality of Central Elgin for the hundreds of acres of land absorbed by St. Thomas for the new industrial park. It is not due until 2054. Next year, $610,000 will be applied to that.
Next year’s budget will come before council on Jan. 13 for final approval.
Written by Ian McCallum
