Prince Edward County Council met again for a full day today at Shire Hall to continue discussing the 2026 draft budget. Today’s meeting focused on operating budgets.
Today was intended to be the final day of budget meetings, however, an additional meeting will be held on Friday, Dec 5 at 9am to finalize. Due to the full agenda and full day, Council decided it was best to reconvene until Friday to finish discussions.
The proposed 11% tax levy by staff is yet to be approved or changed.
Recap of Capital Program:
Summary of capital budget amendments as of end of day Dec 2
$3 million of Canada Community Building Fund for County Rd 1 (truck route) reconstruction reallocated to the other applicable capital projects
Shoreland Designation Review (carry-forward project – $75,000) removed
Pineridge booster station ($954,000) removed
Wellington Secondary Plan update ($100,000) removed
Crystal Palace roof replacement reduced from $750,000 to $500,000
55 King St parking lot improvement project amended to reduce draw on reserve from $81,498 to $56,498
Dec 3 Highlights:
Prince Edward County presented its 2026 Operating Budget, outlining departmental pressures, service levels, cost drivers, and expected revenues. Many divisions report inflation, supply chain issues, aging infrastructure, regulatory requirements, and staffing needs as major contributors to increased operating costs.
WATER & WASTEWATER
Main drivers of higher operating costs
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New method of allocating wages/benefits more accurately to each facility (no longer centralized under overhead).
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Higher equipment costs and supply chain delays.
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Need to stock more spare parts due to availability issues.
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Rising chemical, maintenance, and repair costs.
Notes
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100% rate-funded (no impact on tax levy).
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SCADA upgrades continue into 2026.
This was received by Council.
DEVELOPMENT SERVICES
Budget pressures
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Increased software costs (Cloudpermit, digital plan reviews, GIS tools).
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Anticipated legal costs due to more planning appeals.
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Office equipment upgrades to support modernization.
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Updated Road Condition Assessment scheduled for 2026.
Revenue notes
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Building services are fully user-fee funded.
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Base31 costs recovered through agreement with PEC Community Partners.
This was received by Council.
OPERATIONAL SERVICES
Cost drivers
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Ending of Rogers fibre construction reduces permit revenues in 2026.
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“Producer-pays” recycling transition creates savings.
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Continued Picton Marina operations add costs.
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More winter maintenance and tree removal demands.
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Rising costs for patching materials, equipment, and contracted services.
Efficiency initiatives
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Multi-year contracting to stabilize pricing.
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6-month waste collection efficiency pilot.
This was received by Council.
RECREATION & COMMUNITY FACILITIES
Budget impacts
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Supply chain inflation increasing materials and supplies.
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Higher repair/maintenance costs due to aging facilities.
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Wages consolidated across parks and community centres for efficiency.
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$43,650 from MAT used to fund portable toilet rentals.
This was received by Council.
PRINCE EDWARD COUNTY FIRE & RESCUE
Operating cost drivers
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Higher building repair costs from aging fire halls.
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Rising utility costs.
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Increased contracted services (winter maintenance, lawn care).
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Investments in fire radio communication system.
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Training costs tied to mandatory firefighter certification.
This was received by Council.
H.J. MCFARLAND MEMORIAL HOME
Budget pressures
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Staffing costs rising due to overtime and need for agency workers.
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Utilities and food costs increasing.
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Ongoing maintenance/repairs for aging home.
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Revenue fluctuates based on resident census and care needs.
Provincial funding supports:
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Nursing and personal care, accommodation, minor capital, infection prevention, allied health, and technology programs.
This was received by Council.
FINANCE & INFORMATION TECHNOLOGY
Budget impacts
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MAT revenue projected to rise 22%, goes directly to reserves (no tax levy effect).
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Corporate revenues up 29% from:
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Higher OMPF grant
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Higher penalties/interest on taxes
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Higher development charges
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Corporate expenditures up 20%, largely due to higher transfers to capital reserves.
Major projects
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New HR/Payroll system.
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Server virtualization and cyber-security improvements.
Councillor Roberts, seconded by Councillor Branderhorst, brought forward an amending motion that $71,605.67 from the South East Public Health Voluntary Marger Municipal Levy Harmonization Funding be used to reduce the 2026 Health Unit Levy, which was carried.
Councillor Nieman brought forward a motion, seconded by Councillor Pennell, that Council recommend that $50,000 be removed from the Corporate Management Climate Emergency Line in the draft 2026 budget, which was carried.
CORPORATE & LEGISLATIVE SERVICES
Cost drivers
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2026 election year increases Clerk’s Office costs.
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Legal settlements increased HR expenditures.
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Increased kennel operating costs.
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More property standards clean-ups (fully recovered).
Savings
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Director and Municipal Lawyer roles merged, reducing salary costs.
This was received by Council.
Community Services, Programs, & Initiatives, Housing Services, and the CAO & Mayor’s Office were also on the agenda, but were postponed for discussion until Friday, Dec 5. Council will begin with Community Services, Programs, & Initiatives on Dec 5 at 9am.
