“The direction I provided staff at the outset of the process, on the operating side, was to maintain funding to current service levels,” said Interim CAO Adam Goheen, introducing the Operating Budget.

 “Across all lines of business, department leaders reviewed all cost centres under their control, lowering where possible and justifying any upward adjustments.”

Simply maintaining service levels, however, still requires hikes. Across departments, the biggest expense is salaries and benefits; some steep line-items in Human Resources represent departing senior staff.

Department directors also noted increased maintenance costs for aging infrastructure and inflation affecting equipment purchases and contracted services.

Development Services

The Development Services Department includes planning, engineering, building, and GIS, and is looking to improve efficiency with new software and internal processing systems.

The two-step planning process introduced in 2025 has increased the advertising budget required to notify the public of statutory public meetings. 

Development Service should see increased revenue in 2026, when the Interim Control By-Law pausing development applications is set to expire.

The building division of Development Services is fully-funded through user fees, but a $90k building fee study was added to the budget to maintain service levels. 

A $100k automated road condition assessment tool is also included in the budget, which Director of Development Services Cristal Laanstra noted, is “a vital tool for us to support asset management planning.”

Operational Services

In operational services, costs are driven up by equipment and increasing pressure on road maintenance and winter control. Permit revenue is down as the Rogers Fibre-To-Home project is set to end in 2026.

Director Troy Gilmour noted the trial season operating the Picton Marina successfully raised revenue. Total marina revenues were $187,074 in 2025 and Mr. Gilmour projected revenues of $386,257 in 2026 His department will continue to explore new initiatives for the Marina in 2026.

He also noted that the contracting out for recycling services saved $248k. 

The department will launch a new waste collection pilot project in 2026, a 6-month program operating a rented “self-contained, mini garbage truck” to reduce trips to the waste disposal site. Should the pilot be successful, the department may request funding to purchase the equipment next year. 

Recreation & Community

Director Lisa Lindsay noted that most budget increases resulted from supply chain pressures and inflation on materials and supplies.

Community Parks received a transfer of $43,650 from MAT reserves to fund portable toilet rentals across the County.

The department is trying to improve efficiencies by assigning duties to staff according to geographic location, rather than task.

“Everyone is trained to do all the functions,” said Ms. Lindsay. “You go where the need is.”

PEC Fire & Rescue

The Fire and Rescue Department faces increased costs of aging infrastructure, site maintenance, and radio communications. 

For Interim Fire Chief Tim Kraemer, prevention is the key to keeping the community safe, and operational costs low. Accordingly, a key priority is raising public awareness around fire prevention, lithium battery use, and carbon monoxide. 

“I see this being no different from drunk driving campaigns,” Mr. Kraemer said.

The department is looking to improve detachment efficiencies, including reducing the number of full station responses to “high frequency, low risk,” calls. 

HJ McFarland Memorial Home

The municipally-operated long-term care facility receives funding from the Ministry of Long-term care to support its operations. 

Expenditures are up as it prepares to open a new facility in 2027, expands student placement opportunities, and absorbs higher utility and maintenance costs. 

The facility wants to hire additional permanent staff to reduce the pressure of overtime pay. 

Finance and Information Tech

The Finance and IT department anticipates a 22 percent increase in the Municipal Accommodation Tax (MAT) in 2026 due to increased tourism in 2025. MAT funds are reserved for tourism-related projects. 

Within the department, the Corporate Management budget includes partnerships and agreements with external agencies, such as Quinte Conservation and Southeast Public Health. 

During budget talks, Mr. Goheen introduced an additional $214k of harmonization funding from the newly amalgamated health unit, available to be used at once or in installments over the next five years. 

Noting that “since 2018, the province has only increased the funding for public health one percent,” Councillor Bill Roberts suggested spreading the funding over three years, leading to a motion that $71,600 be used to reduce the health unit portion of the levy. 

Council also carried a motion to remove $50k from the Corporate Management Climate Emergency budget after confirming it has $423k in reserves. 

Corporate and Legislative Services

Expenditures are up in this department to cover the cost of the 2026 municipal election. 

The Human Resources department also shows a budget variance of $477,135, which Director Sarah Viau noted is the result of legal settlements, not new positions. This past year, several senior staff members left their posts. 

The biggest line item in the department is $4,818,400 for the OPP Detachment, a 5 percent increase from 2025. This number may rise pending pay agreements with the province. 

Community Services, Partnerships and Initiatives

Council carried several motions amending community grants and partnerships.

After pledging to consider $100k in additional support for PEFAC, on top of its $70k commitment, Council cut the total of additional funding and introduced caveats to the agreement. 

They approved an additional $80k of support, and directed that the funds come out of the existing CSPI budget. The 80k will now come out of the Community Improvement Plan reserve. 

The funding is also contingent on a member of Council gaining a seat on the PEFAC board.

An additional $37k will go to Community Care For Seniors.

Council also carried a motion from Councillor Corey Englesdorfer to allocate $20k from the MAT reserve to support Pumpkinfest and Canada Day festivities in Wellington. 

Housing Services

Director of Housing and Interim CAO Adam Goheen said the Housing Department needs to explore new ways of paying for operating costs. 

The reserve used for staffing in this department is “drained down to nothing at this point,” he said. A review will involve consultation with the Prince Edward County Affordable Housing Corporation about the feasibility of increasing funding through its forthcoming rental buildings. 

Affordable Housing Supervisor Elis Ziegler confirmed that Requests for Proposal for builder-owners of the two affordable housing developments in Picton and Wellington were out. 

Mx. Ziegler also noted the County’s agreement with PELASS renews in 2026, and they expect more funding for Leeward House because transitional housing is a stated priority.

The Mayor’s Office

The new Civic Recognition awards program requires $10k, which will come out of the Mayor’s Office budget in 2026.

The budget also contains $100k for a Service Delivery and Organizational Review, $25k for a review of the Non-union compensation By-law, and $25k for an Equity Audit. 

Mayor Steve Ferguson noted a continued priority is his advocacy at the federal and provincial levels for repair of County Road 49.

The Mayor will present the final budget at the first meeting of Council in January 2026.