City Hall is facing the same inflationary pressures as local households, with rising costs hitting everything from water delivery to road repair. To keep services running, the city approved a 4.21 per cent increase to tax-supported operating expenses. For residents living inside the transit levy area, this translates to a 3.95 per cent increase on […]
City Hall is facing the same inflationary pressures as local households, with rising costs hitting everything from water delivery to road repair. To keep services running, the city approved a 4.21 per cent increase to tax-supported operating expenses.
For residents living inside the transit levy area, this translates to a 3.95 per cent increase on the city portion of their property taxes. In practical terms, homeowners will pay an additional $42 for every $100,000 of assessed home value in 2026.
While the budget represents a significant ask of taxpayers, it highlights a deepening systemic struggle: the cost of maintaining aging infrastructure. The city has invested $262 million into capital projects over the last five years, a 34 per cent increase intended to fix decades of deferred maintenance.
The 2026 plan allocates $65.5 million toward infrastructure renewal. This includes critical work that often goes unnoticed until it fails, such as $10.9 million for sewer separation to prevent flooding during extreme weather and $4.5 million for the St. Andrews Street Treatment Plant.
In a notable move to keep the tax hike from climbing higher, the city chose to defer several large-scale projects. Most significantly, this included a proposed $91.1 million new station for the Sarnia Police Service.
By limiting these major capital expenditures and reducing transfers to reserve funds, the city was able to mitigate the immediate impact on property tax bills. However, reducing reserves is a short-term fix that may leave the city with less flexibility for future emergencies.
The budget focuses on growth and essential services, with several key investments earmarked for 2026:
$11 million to extend Wellington Street, a move designed to facilitate growth in the city's east end.
$7.8 million for major reconstruction on Copland Road and Kathleen Avenue.
$4.1 million for road resurfacing across the city.
$2.1 million to expand and replace the aging transit fleet.
$2 million for the Bright’s Grove Library and $3.6 million for general recreation spaces.
The final impact on local tax bills will not be fully known until the County of Lambton and local school boards finalize their own rates later this year.
