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Penetanguishene eyes 4.5% municipal tax increase with 2025 budget

Policing influx to be addressed in spring report as council ratifies budget with 3.9% blended tax rate increase
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Penetanguishene Mayor Doug Rawson voted in favour with a unanimous council to approve the 2025 budget at a recent meeting of council.

Penetanguishene Mayor Doug Rawson said that with council’s due diligence on the 2025 budget, taxpayers should feel proud; however, the job isn’t finished quite yet.

The comments came after council passed a 4.5% municipal tax rate increase for next year’s budget, equating to a 3.9% blended tax rate increase – or $61.24 per $100,000 of residential current value assessment.

The 4.5% ($600,000) increase was due to town increases of 2% ($265,000) for operating and 1% ($139,000) for capital purposes, as well as a 1.5% ($195,000) policing increase. However, an announcement by the province in late November noted a $77 million injection to municipalities which would address OPP billing costs, equating to roughly $330,000 for Penetanguishene.

The policing alleviation, announced after the draft budget had been presented, wasn’t calculated within the 2025 budget final draft report presented at the recent council meeting, as noted by treasurer and finance director Carrie Robillard.

“The reduction… which we haven't received yet,” said Robillard, “it'll come to us in the form of a revised 2025 billing. But a large part of that reduction is also related to 2023 reconciliation, so it's not all based on 2025 policing costs.”

A forthcoming report by March is expected to address the policing aspect, allowing for final revisions by council to the tax rate.

Coun. Suzanne Marchand, chair of the finance and corporate service section, extended thanks to staff for hard work on the budget, as well as council for approving the $24.7 million annual budget of funding from $13.8 million operating, $8.7 million capital, and $2.2 million policing.

 “The goal was to develop a budget to maintain and enhance the service levels that residents enjoy, focused on key areas that the public identified as priorities such as roads and fire service, and keeping the tax rate increase at a reasonable level,” said Marchand.

Key projects in the 2025 and 2026 capital budgets include: reconstruction of Peel Street from Robert Street East to Brock Street ($2.3 million); intersection upgrades at Robert Street East and Fuller Avenue ($1.5 million); an expansion of the road division garage and wash bay ($1.2 million); and more.

Following the meeting, Rawson told MidlandToday that council and staff had worked through the process while balancing community wants and needs against current realities and pressures.

“We’ve still got some work to do to reconcile everything,” said Rawson. 

“I think if you think about where we're at from a capital, policing, and operation (perspective), I think we did a really good job. And I think they should be (pleased). I am, and unanimously this council's behind it. I think a lot of hard work's been done, and (residents) should know that we've done due diligence and they should be proud.”

The 2025 budget final draft report can be located on the agenda page of the Town of Penetanguishene website.

Meetings of Penetanguishene council are held on the second Wednesday of each month, and can be watched live on Rogers TV cable 53 when available, or on the Rogers TV website.

Archives of council meetings are located on the Town of Penetanguishene YouTube channel.


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Derek Howard, Local Journalism Initiative Reporter

About the Author: Derek Howard, Local Journalism Initiative Reporter

Derek Howard covers Midland and Penetanguishene area civic issues under the Local Journalism Initiative, which is funded by the Government of Canada.
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