Budget Challenges Facing Incoming Council Members

A Review for Candidates in the 2026 Municipal Election

As you prepare to serve the residents of Owen Sound, you must understand the significant fiscal pressures facing this community of 21,612 residents. With a median after-tax household income of just $57,600 - well below provincial averages - your constituents have limited capacity to absorb tax increases while the City faces mounting cost pressures.

The Affordability Crisis

Owen Sound residents are financially strained. Every property tax increase directly impacts households already struggling with the rising cost of living. This reality must inform every budget decision you make. The 2025 budget process resulted in substantial tax levy increases across multiple departments, and continuing this trajectory risks pricing residents out of their own community.

Limited Revenue Flexibility

Only 72 cents of each property tax dollar remains at the City to fund services, with the exception of water and wastewater. The remainder goes to county and education levies, severely constraining your fiscal flexibility. You cannot simply “raise more revenue” without imposing hardship on residents who may already be choosing between paying property taxes and other necessities.

What This Means for Your Term

You will face intense pressure from department heads, unions, and special interest groups to maintain or increase spending. You must resist. Every dollar you approve comes from residents earning $57,600 or less. Ask whether each expenditure is truly essential. Challenge the assumption that this year’s budget must exceed last year’s. Consider zero-based budgeting approaches that require justifying every expense rather than accepting incremental increases.

Structural Budget Pressures

The City’s budget faces several entrenched challenges that will demand your immediate attention. Employee salaries account for $31.2 million - 65% of total expenditures - and increased 5.4% in 2025 following an 8.1% increase in 2024 and 3.3% in 2023. This wage spiral is unsustainable given the income levels of those paying for it. Police and fire services alone consume 45% of the budget, with the broader category of police, fire, and transportation taking 62%.

Police services expenses have surged 28.6% from $11.5 million in 2022 to a projected $14.8 million for 2025 - a 5.4% year-over-year increase in tax levy funding. Similarly, community services saw an 11% increase in tax levy funding, with expenses growing 18.2% from $5.9 million in 2022 to nearly $7 million for 2025. These increases far outpace inflation and resident income growth.

Search for Unnecessary Spending and Waste

For some time we have been aware of questionable hiring at city hall, spiking workforce growth at a time when Owen Sound's population has been relatively flat. Owen Sound's current population is actually less than what it was 20 years ago yet the city's workforce has steadily increased along with the unnecessary reliance on contracted assistance. This was clearly exposed in Jim Hutton's Service Review Paper a couple of year's ago which was immediately disgarded due to severe push back from city staff who saw their numbers in danger.   I invite you to review this paper that can be downloaded at: www.owensoundtaxes.com. This website also provides a detailed review of areas in the Budget where Owen Sound's spending is excessive as compared to nearly identical municipalities. Tap or Click Here to review.

You can expect fierce resistance to any suggestion that Council should consider staff reductions. The City Manager and some council colleagues will oppose any workforce optimization. You'll face arguments that current staffing is "already lean," attempts to discredit the data, and possibly personal attacks for even raising these issues.

In the face of this resistance we challenge you to:

• Do Your Homework: Review the comparative data objectively. Understand the methodology and findings before engaging in debate

• Apply Critical Thinking: Question assumptions about "necessary" staffing levels. Why should 2024 Owen Sound require more staff than 2006 Owen Sound with a larger population?

• Stand Firm on Evidence: Base your position on data, not emotion or political convenience

• Build Coalitions: Find like-minded councillors who recognize fiscal sustainability as essential to Owen Sound's future

• Focus on Outcomes: Frame discussions around service levels and taxpayer value, not just staff numbers

This isn't about being anti-employee or anti-public service. It's about fiscal responsibility and ensuring Owen Sound remains affordable for current and future residents. Unchecked spending growth is unsustainable and threatens our community's long-term viability.

The Question is: Will you have the courage to examine these issues objectively and act in the long-term interests of Owen Sound taxpayers, even when facing significant institutional resistance?

The evidence is available.       The challenge is real.      The choice is yours.

The Bottom Line
Governing Owen Sound requires making difficult choices with limited resources. Your constituents will elect you to be stewards of their tax dollars, not caretakers of bureaucratic expansion. They need essential services delivered efficiently, not gold-plated programs they cannot afford. Success means maintaining service quality while achieving fiscal sustainability - respecting both the needs of residents and their capacity to pay. The community is counting on you to bring spending growth under control while preserving the services that make Owen Sound a good place to live.

Your Responsibility is Clear: serve the 21,612 taxpayers who fund the city -- not the special interests spending their money.