Breaking down Sarnia’s attempted 2025 budget

Sarnia city council sets virtually Tuesday to tackle budget deliberations, under strong mayor powers for a second year. Here’s a breakdown of the results, what was discussed, and what happens next.

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HOW IT WORKS

Unlike most previous years, council no longer approves the city’s budget.

That’s now the mayor’s job, part of a bargain that also includes provincial cash for meeting or exceeding housing-start targets. Last year, the strong mayor powers were relatively new in Sarnia and the city was still figuring out the process.

Mayor Mike Bradley considered this year making tweaks to city-staff-prepared budgets, but ultimately presented the draft unchanged for council budget deliberations.

Council, under provincial rules, has 30 days after the budget is presented by the mayor to make changes. This year’s was presented Oct. 29.

At budget deliberations Nov. 26, council voted to waive the last two days of that 30-day period, starting a 10-day window in which Bradley can veto any council amendments made during deliberations.

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Council, within 15 days after any vetoes, can override them with a two-thirds vote.

Bradley said Tuesday he’ll make a decision soon about whether or not to use his veto.

THE END RESULT

Total operating expenditures for 2025 went up, to $184.25 million, about a $450,000 increase compared to the draft and tied primarily to a $186,000 ecologist position add-on, city communications manager Steve Henschel said. Council previously has heard having the position on staff will save money long-term and voted 6-3 to go ahead, with Coun. Bill Dennis, Bradley and Coun. Dave Boushy opposed.

The levy increase went down, to 4.42 per cent. That means a $4-million increase, to $95.6 million.

The smaller-than-originally-proposed levy increase is tied to boosting expected city revenue, including the projected Bluewater Power dividend by $100,000, Henschel said.

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The pending levy increase represents another $45.72 for every $100,000 of residential assessment in the city’s transit levy area, within 450 meters of a transit routehe said. The transit levy increased 5.58 per cent.

Outside the transit levy area, the levy increase represents another $42.16 in taxes on every $100,000 of residential assessment, Henschel said.

City capital spending plans dipped, to $56.3 million, from $56.8 million. The drop is largely related to paring back spending on a Bright’s Grove library hub projecthe said.

Water and sewer rates went up 5.43 per cent, to $47.6 million, as proposed in the draft.

City 2025 year-end reserve projections also increased slightly, to $32.1 million, from $31.9 million, Henschel said.

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THE STARTING POINT

Council went into deliberations with a $183.8-million operating draft, relying on a 4.9 per cent levy increase, and a $56.8-million capital budget.

Operating costs in the draft were up about $4.3 million compared to 2024, with $6 million from reserves being used to lower the taxation increase.

Water and sewer rates were proposed to increase to pay for more contributions to reserves, the Lambton Area Water Supply System and other expenses.

Capital projects included upgrades at Progressive Auto Sales and Clearwater arenas, money for Bright’s Grove library upgrades, various playground and parks improvements, landfill and compost site improvements, more sewer separation work, multi-use pathways in the city, new nozzlesfor police facility replacement workfire station five updates, shoreline protection, Gladwish Driveflood mitigation investments in Coronation Park, road resurfacing and various other things.

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WHAT CHANGED

A handful of expenses were added, though most will be paid from reserves, council decided.

They include new playground equipment for Queen Park, adding a city ecologist to staff, updating a community improvement plan for Mitton Village and downtown, giving away trees for private property, and a $2,600 grant for the Bluewater Cycling Organization.

Collectively those additions are about $480,000.

Council also trimmed capital contributions this year to library hub plans in Bright’s Grove to $2 million, matching what was provided for the project last year. About $2.67 million had been budgeted in 2025 and that same amount is pending in 2026.

Fundraising and potential senior government grants are still in the works for the $8-million-to-$10-million project, and city hall is expected to provide the remainder.

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Council boosted Bluewater Power dividend projections and income projections at Coun. Terry Burrell’s suggestion, to better match with historical trends.

WHAT DIDN’T CHANGE AND WHAT WAS LEFT OUT

Council voted to hold off on a $725,000 workers memorial upgrade in Centennial Park, and $245,000 in security and exterior improvements for the downtown library branch.

And there was no talk about spending more on any of the unfunded but approved capital projects on council’s list, including waterfront master plan workand a multi-use recreation facility.

There’s $25 million in unfunded projects on 2025’s list, and more than 10 times that much during the next 10 years.

Council didn’t make any other budget cuts for city departments and capital spending, opposing several suggestions from Burrell and Dennis.

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Dennis called for scrapping electric bus and active transportation spending, and paring back consultant spending, before he was expelled for poor behavior.

Burrell noted several double-digit percentage increases in various city department budgets and proposed blanket cuts, but couldn’t find support.

Some of the increases are related to city department reorganization, including a handful of new city departments, to make the city operate more efficiently, deal with new IT requirements, and focus more on facilities and grounds maintenance, staff said.

Some of the proposed cuts, if they’d gone ahead, would have come out of salaries, staff said.

WHERE THE MONEY GOES

About half the city’s money comes from property taxes, a quarter from water and sewer rates, and the rest from a combination of grants, user fees, dividends and interest on investments, recovered costs, and reserves, city ​​budget documents say.

More than half of operational spending goes to staffing costs, and more than a third goes to protection services like police and fire. A quarter goes to environmental services such as sewage and waste management.

Capital spending mostly goes to water and wastewater infrastructure, where about $31 million is expected to be spent in 2025.

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