Jane Glenn | January 10, 2026
Citing "tax fatigue," Saugeen Shores Council has voted to cut costs and use reserve funds in an effort to reduce the proposed 2026 tax increase from 2.2% to 0.6%.
At the December meeting, council was set to pass the recommendation in the agenda to approve the 2026 Final Business Plan and Budget Report. Mayor Luke Charbonneau gave council the opportunity for any final amendments before the plan would take effect on January 15.
Southampton Councillor John Divinski asked councillors to "turn down the 2026 budget, not because it's bad...but because it doesn't go far enough." He said that after reading citizen comments on the proposed budget, tax increases were clearly the number one concern.
The original recommendation had stated that residents would see "an estimated combined blended tax rate increase of 3.82%. When combined with the planned increase in the Future Infrastructure Special Levy and reduction in the Waste Management Fixed Fee, this represents a $202 increase to the average household assessed at $314,000."
Divinski said that the $202 increase is too high for many households and suggested that funds be taken from the Tax Stabilization reserves. "There is no reason we can't reduce our 4.2% operating budget and then reduce the blended rate of 3.8% lower as well. Taxpayers see the blended rate and that's what they focus on, because that's what they're going to pay," said Divinski.
"It is taxpayer money," said Divinski, referring to the reserve. "It's like a taxpayer piggy bank, but in a year when costs are so out of control for so many people, such as myself, it may be time to reduce a bit more, just this one year."
Port Elgin Councillor Bud Halpin agreed, saying that no matter who he speaks to, no one is happy with a 4% tax increase, or the 5% increase in the last few years. He wanted to emphasize that this is "about what people can handle right now."
He pointed out that "historic investments" have been made in Saugeen Shores in recent years, in the downtown, Lamont Park, and the Aquatic Centre, and that it may be a time to "take a breather" and "enjoy what we have."
Halpin then proposed an amendment to take $400,000 from the Tax Stabilization Fund to reduce the budget and ask Town staff to find an additional $150,000 in savings to bring the rate down to 2.4%. Halpin said the fund is "like a rainy day fund and I think a lot of folks would say this is a rainy day." He said he was "looking for support" for his amendment.
Councillor Rachel Stack commented that if reserve funds were used, future cuts will be needed to replace that money. "We can only rely on reserves for so long, we are kicking the ball down the road," she said.
Stack added that after reviewing some of the master plans for 2026, such as the Library and Town Hall, that $200,000 is budgeted for consulting fees.
"I know that consultancies are a necessary evil but I suggest there are opportunities to trim consultancy fees for 2026," she said. "We can do some reserve funding, perhaps to respond to some of the community concern about consultants," said Stack.
The use of consulting firms has been debated lately. At a November 24 council meeting, a report on ball diamond and ice use was presented by London-based firm Monteith Brown and members of the public attended the meeting and showed major inaccuracies and omissions. The report cost $20,000.
Vice Deputy Mike Myatt said "considering it's a $26 million budget, we should look at where we are heading." He said he had looked at consultancy fees over the last three years and a total of $535,000 was spent on reports and approximately $300,000 is earmarked for future consultants. He said "cutting the $300,000 would be a good start."
He also cited recent statistics on rising costs, such as the 17.2% rise in inflation over the last five years, according to the Ontario Consumer Price Index, and an estimated $1000 more annually for food for a family of four. "People are hurting," he said. "I am hearing this more this year than any other of the 11 years I've been on council."
Myatt finished by firmly stating "our spending is out of control. I made those comments last year during budget deliberations and I will say it again." He said over the last five years, residents have seen an increase of 25% in taxes and agreed with Halpin that "people are fatigued."
Councillor Divinski seconded Halpin's amendment and requested a recorded vote. Mayor Luke Charbonneau wanted to comment before the vote, reminding members that "by doing this we are creating a structural deficit in the operations of the municipality and we can't make it up with a one-time income, it needs to come from a permanent funding source and the only one we have is taxation." He also noted that with 2026 being an election year, "we'd be passing it on to another council who hasn't even been elected yet."
The motion to amend was passed, with all council members voting for and Deputy Mayor Diane Huber and Councillor Dave Myette voting against.
In a news release on the Town website, it was announced that $470,000 from the Tax Stabilization Reserve would be transferred to reduce the proposed tax increase from 2.2% to 0.6%, excluding police.
When combined with police, estimated education and County budgets, this change results in a blended tax rate increase of approximately 3.0%, or about $132 per average household.
Mayor Luke Charbonneau explained in the release that costs are rising for the Town, just as they are for residents and local businesses.
"To help in the year ahead, Council has chosen to draw from our Tax Stabilization Reserve to reduce the municipal tax increase," said Charbonneau. "This provides temporary relief from higher costs while we continue to invest responsibly in core services and infrastructure, building a community that makes life better for everyone," he said.
