Budget During an Election year

As we begin work on the 2026 budget—and with 2026 marking a municipal election year—it’s important to have an honest conversation about what fiscal responsibility really looks like at the municipal level.

Municipal budgets, like household budgets, are affected by annual cost-of-living increases. These are not surprise expenses — they’re expected and planned for through our budgeting process and responsible tax rate decisions.

We’re all feeling the effects of inflation — whether at the grocery store, the gas pump, or on our property tax bill. That’s why Council and staff work diligently each year to find efficiencies, deliver value, and maintain high-quality services, all while keeping Aurora among the lowest-taxed municipalities in the GTHA.

I understand that this year’s budget comes in a pre-election year, so it’s no surprise that some will promote a 0% tax rate as a “win.”

But as we have seen in municipalities that have tried it – even here in aurora – it is not a win for fiscal responsibility.

Proposing to hold tax rates artificially low for one year, by using reserve funds that aren’t intended to cover expected operational costs, isn’t smart budgeting. It’s simply taking money from Peter to pay Paul ; creating deficits in funds meant for emergencies and compounding budget pressures in the years ahead.

❌ Why 0% Tax Rates Cost More Later

A 0% tax increase sounds like good idea right? I mean who wants to pay taxes.

Especially when the promise is we can magically achieve this without having to cut programs or services either

But as we all know, there are no shortcuts.  Short term politics, inevitably lead to long term consequences.

The reality:

• Inflation keeps rising.
• Roads still need repairs.
• Snow still needs clearing.
• Kids and seniors still need programming
• Staff and supplies still cost more.

So without cutting services or programs, how would the Town make up the difference? Usually by:

• Delaying critical maintenance
• Cutting services
• Or dipping into reserve funds meant for emergencies

Using your money –  from an emergency reserve – to temporarily, and artificially, create a zero tax rate.

It’s like paying your household bills with your savings— what happens next year?

You’re left with higher costs, fewer services, and a drained safety net.

And then what?

Tax hikes. Big ones. Often 7%, 8% or more—because the costs didn’t disappear, they just piled up.

We’ve seen it in other municipalities. We’ve seen it here in Aurora. A few years of zero tax rates led to almost a decade of 7, 8 and 9% tax rates.

💰 What Is the Tax Stabilization Reserve?

Some residents ask: “Why can’t we just use the Tax Stabilization Reserve to lower the tax rate?”

Simple answer: Because that’s not what it’s for.

And what’s worse, this isn’t the first time this term we’ve seen an attempt to treat the Tax Rate Stabilization Reserve as a magical pot of money.

As residents are aware, this same reserve fund was proposed as the funding source for a 42.6% increase to Council’s compensation.  If this compensation increase had not been vetoed, it would have resulted in draining of taxpayer money from the Tax Stabilization Reserve – an emergency fund – that was designed to protect our community in times of crisis.

This reserve exists to protect residents from emergency financial shocks—not routine expenses. It’s our emergency fund. It’s there for:

• Natural disasters
• Infrastructure failures
• Sudden drops in revenue
• Unexpected pilot project shortfalls

It is not for:

• Day-to-day operating costs
• Inflation-driven increases
• Politically motivated proposals (like a 42% council compensation increase)

Draining it to make this year’s budget artificially look good is, to my mind,  a reckless move that sets us up for even bigger problems next year.

📈 What Happens When You Take Shortcuts?

The saving? Isn’t real.  In fact, you’re going to end up paying a lot more in the years after. .

It’s like skipping oil changes to save $50—then paying $5,000 for a new engine.

Aurora has seen this story before. Other towns have lived it too. Short-term freezes often lead to long-term spikes— It’s taking from Peter to pay Paul—knowing full well Paul will come knocking next year, with interest—and residents end up footing a much bigger bill.

✅ What We’ve Done Right in Aurora

In Aurora, we’ve chosen the responsible path:

• Small, predictable tax increases
• Long-term financial planning
• Strategic investments in our community

Over the past 8 years—including the challenges of COVID—we’ve kept Aurora in the 8th lowest tax rate position in the GTHA while delivering:

🏛️ Town Square

🏀 New gymnasium

⚾ New baseball diamonds

🏟️ New Artificial turf fields

We didn’t gamble with your tax dollars. We planned ahead. We invested wisely. And we avoided the roller coaster of tax volatility.

This didn’t happen by accident. It happened because we refused to chase headlines and instead focused on doing what’s right.

🔚 The Bottom Line

Fiscal responsibility means:

• Planning for what we know is coming
• Using reserves for what they’re actually for
• Avoiding short-sighted decisions that hurt us later

It means protecting the future of our community—not playing politics with your wallet.

That’s how we continue building Aurora into one of the best places to live, work, and play.

Leadership That Gets Things Done. No shortcuts. Just results that works for you.

#WorkingForYou