Beyond the Blended Rate: What Tiny Township’s 2026 Budget Really Means for Residents

In reviewing the 2026 budgeting process—the final budget adopted by this Council as it enters an election year—it is important to look beyond the headline numbers and consider the broader context.

On December 11, 2025, Council approved a municipal tax increase of 5.85%, publicly promoted as a 3.99% blended rate. This distinction matters. The blended rate combines municipal, county, and education taxes into a single figure, making the increase appear more modest. By emphasizing the blended rate, Council highlighted an average increase of $7.11 per month for a home assessed at $350,000. Yet few residents in Tiny live in a $350,000 home, so the $7.11 per month will actually be higher. For many households already struggling to put food on the table or heat their homes, $7.11 going to taxes instead of their monthly bills. Framing the increase this way diverts attention from the municipal portion Council directly controls and instead shapes a narrative of fiscal restraint and shared responsibility, rather than increased local spending.

Since taking office, the cumulative impact of this Council’s tax decisions has been substantial. Actual municipal tax increases were 10.82% in 2023, 8.19% in 2024, 6.53% in 2025, and 5.85% in 2026, resulting in a compounded municipal increase of 35.13% over four years. Over successive budget cycles, the Township has taken an aggressive approach to setting the tax levy, consistently collecting more than required to fund actual operating costs. These recurring operating surpluses have been transferred to reserves rather than reflected in lower tax levies or meaningful adjustments to service levels.

The Township has stated that, “Following 2025 year-end surplus calculations, the budget may be further reduced in the spring, leading to a lower final tax rate increase for 2026.” The use of the word “may be” is deeply disappointing. At a time when local food banks are over capacity and many residents are struggling with basic affordability, Council had the option to reduce the tax increase from the outset but chose not to do so. This decision reflects a troubling and misconstrued assumption that residents can simply absorb higher taxes. Residents are left asking whether Council is effectively listening to taxpayers’ concerns and the going affordability issues affectively all Canadian citizens. Could they not caution and compassion when it matters most.

While smaller tax increases in an election year may be presented as efforts to improve affordability, they can also be politically motivated. Keeping increases artificially low often relies on one-time revenues, reserve funding, or deferred expenditures, which merely shifts financial pressure onto future budgets and future councils.

The reserve balance identified by the Deputy CAO is significantly lower than the projected year-end position. Although Council members are aware of current economic conditions, the discussion showed limited consideration of the real impact tax increases have on residents. As Councillor Helowka remarked at the conclusion of the meeting, residents should be grateful to live in a so-called “low-tax” community, suggesting they would pay more elsewhere. This perspective overlooks a key reality: unlike neighbouring municipalities, Tiny has a 97% residential tax base. Residents rely heavily on surrounding communities for shopping and for municipal services not provided locally. Taxes in Tiny should therefore be lower, not higher, as residents do not receive the same scope or level of services available in other Simcoe North municipalities. Councillor Walma has also indicated that reducing infrastructure investment is a higher priority than maintaining a lower tax rate.

The 2026 budget exposes underlying challenges that cannot be ignored, including rising operating costs, underfunded infrastructure, significant Tiny Township Administrative Cente debt repayments still ahead, and a widening gap between revenue growth and long-term financial obligations. While the 2026 figures may appear manageable in isolation, a deeper review reveals structural fiscal pressures that will confront the next Council between 2027 and 2030. Without long-term planning, transparent financial modelling, and strong governance, these pressures will be borne by future councils and Tiny Township residents.

Despite these concerns, Council approved the 2026 budget on January 7, 2026, with little evidence that additional effort was made to meaningfully address the affordability challenges facing Tiny residents.