A Decade After the Pledge, Cornwall’s Budget Challenges Persist

Jason Setnyk—Op/Ed
A Decade After the Pledge, Cornwall’s Budget Challenges Persist

Ten years ago, in 2014, Cornwall saw an ambitious push for fiscal restraint, with 23 council candidates pledging to “roll back” propertytaxes as part of a Community Action Group initiative. Among those who signed the pledge were five individuals who now hold seats on the current council: Mayor Justin Towndale and Councillors Todd Bennett, Maurice Dupelle, Claude McIntosh, and Denis Sabourin. This pledge resonated with voters concerned about the burden of rising taxes and the need for prudent budget management. A decade later, the city’s budgetary trends suggest that while there was initial success in controlling tax increases, achieving long-term fiscal restraint remains asignificant challenge.

In the years immediately following the pledge, Cornwall managed to keep budget increases modest, with 2.4% in 2015 and 1.89% in 2016,signaling an effort to honour campaign promises. Between 2017 and 2022, increases ranged from 2.79% to 3.97%, a manageable trajectory that balanced growing service demands with fiscal responsibility. However, the trend shifted in 2023 and 2024, with increases of 3.61% and 4.15%—the highest consecutive increases of the past decade. The proposed 6.76% increase for 2025, although certainly not the final number, raises serious concerns about the city’s ability to maintain a sustainable budget while meeting its obligations.

Cornwall’s growing budget reflects broader economic realities that municipalities across Ontario face. Rising inflation, higher costs for goods and services, and growing population demands contribute tobudget pressures. Mandated services such as policing, fire protection, social housing, and infrastructure maintenance consume significant portions of the budget. Meanwhile, wage increases for unionized municipal employees, new regulatory requirements, and infrastructure repairs further limit the city’s flexibility. While Cornwall’s growing population theoretically expands the tax base, this growth has not been enough to offset rising costs, and the city has been compelled to draw money normally earmarked for reserves to balance its budget—an unsustainable practice in the long term.

Systemic constraints have limited efforts to reduce costs.Municipalities are bound by provincial legislation to provide essentialservices, while long-term contracts and debt-servicing obligations restrict opportunities for immediate savings. Public expectations for maintaining or expanding recreational facilities, libraries, and community programs make cuts politically difficult, while revenue tools like property taxes and user fees provide limited flexibility. At recent budget deliberations, Interim CAO Tracy Bailey described the 2025 proposal as “the most challenging budget” to date, highlighting the difficulty of maintaining services while avoiding unsustainable tax increases.

Cornwall’s leaders must now grapple with difficult decisions to balance fiscal responsibility and service delivery. Keeping the 2025 budgetincrease below 5% may be achievable but could come with other burdens for taxpayers. To do so, the city may need to delay non-essential capital projects, reconsider staffing expansions, or explore efficiencies in program delivery. However, even these measures may not fully resolve the underlying pressures. Without additional revenue streams or increased provincial and federal support, Cornwall’s fiscal challenges will likely persist in the coming years.

The promises made in 2014 underscored a shared commitment toaddressing tax burdens, but the past decade has revealed the complexity of municipal budget management. Cornwall’s budget has grown from $154 million in 2015 to a proposed $249.7 million in 2025, reflecting the city’s evolving needs and challenges. As council prepares to finalize the 2025 budget, the focus must shift from short-term fixes to long-term sustainability. More challenges lay ahead, including the need for a new police station, expected to cost over $50 million.

Balancing rising costs with taxpayer affordability requires sound financial management, transparent decision-making, and open dialogue with the community—efforts exemplified by initiatives like the recent Resident Café budget talks. However, that event only drew a few dozens citizens. Nonetheless, in a shrewd display of economic stewardship, the Resident Café didn’t serve coffee or tea, saving the city nearly $20.

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