Midland looks to cut into 5.18% tax hike after checking out 2026 draft budget
By: Derek Howard, Local Journalism Initiative Reporter, Source: MidlandToday.ca, Nov 06, 2025
Midland residents weren’t the only ones to get their first look at the 2026 budget, as council were provided an overview of the first draft Wednesday evening.
Within the first draft, as explained by CAO Rhonda Bunn at the committee of the whole meeting, staff were directed to bring back their best means to keep existing services levels with efficiencies while holding wants at bay over needs. She acknowledged that updated figures would change the draft, noting that the slideshow presentation showed lower figures than what was in the council report.
“The base budget that staff are presenting to council represents a 1.71% increase to the tax rate,” said Bunn, adding that an assumed increase to OPP contracted services (at $564,000, 11% over last year) could result in an additional direct 1.87% increase to the tax rate but could also change when updated information arrived.
Bunn offered that as the base budget was the starting point for council deliberations on proposed service level changes, new initiatives, the agencies, board and commissions, and other council requests – only if all of those were approved as presented, along with the Simcoe County tax rate: “The draft budget represents a 5.12% tax rate increase for 2026. The proposed tax rate increase represents a $7.32 monthly impact for each $100,000 of property assessment.”
This marks the first time the budget is being presented using Mayor Bill Gordon’s “strong mayor’s powers.”
Gordon. informed residents that in previous budgets, his voice was just one of nine and council could collectively own up to their decisions, but the 2026 draft budget through strong mayors powers meant ownership of the final decision was his burden alone.
“(In the past), council set the budget, we collectively all approve the number,” said Gordon. “We’re going to do it exactly the same way we’ve done it in the past. The only thing is in the name, it’s my budget – I’m going to bring and present it, and then we’re all going to deliberate and see if we can find and sharpen our pencils even more.”
Gordon noted that the draft 1.71% base budget increase was “the one we actually have control over to some degree”, and would be the portion “that I’m prepared to be strapped on a boat so when people want to take a run at me on this budget… you can.”
Other noted increases were a 4% hike to water and wastewater users, consistent with previous annual 4% increases and less than the recommended 5% increase as staff recognized leniency for ratepayers of those services. A 10-year capital plan listed roughly $209 million in new capital projects with multi-year initiatives.
“There are some opportunities that council is aware of,” said Gordon, “where we could – if we decided to use all of a million dollars that we expect is coming our way – lower the budget to really look incredible to the voters. But would that be responsible, to knock four points off the budget to have an artificially low one in the election year budget, and not contribute to our reserves? That would be wildly irresponsible.”
Coun. Bill Meridis remarked that of the 5.12% blended tax rate increase shown, “I don’t like the 5, but I’m pretty sure you all knew that.”
A brief exchange between Gordon and Meridis was sparked when Coun. Howie Major alluded to town infrastructure projects, which allowed Gordon to again promote the $30 million provincial grant received in 2024 for water and sewer expansion, and highlight the reliance on grants to fund infrastructure and support incoming growth anticipated by the province, without raising the tax rate above 10% and despite development uncertainties.
And while provincial and federal grants are generally still funded by taxpayers, Gordon said there was no reason to believe grant funding wouldn’t continue as provincially-mandated growth was coming. Meridis, however, countered that developers could simply abandon projects if conditions weren’t right in the economy.
Council approved receiving the draft budget presentation for information. Gordon encouraged residents to attend the November 26 budget public meeting to speak to council and staff directly on what they would like for their upcoming budget.
Following the meeting, MidlandToday spoke with Meridis about the anticipation for the December 9 and 10 council deliberations.
“It’ll be my last budget for this term, so I’m excited to carry on what I’ve been doing for the past three budgets,” said Meridis. “I’m looking forward to getting that tax rate with a three in front of it versus the five that is existing right now.”
The 2026 draft budget presentation, including slides and summary report, is available in the council agenda on the town of Midland website.
Council meetings are held every third Wednesday, and can be viewed on Rogers TV cable channel 53 when available, or through the livestream on the Rogers TV website. Archives of council meetings are available through Rogers TV and on the Town of Midland’s YouTube channel.