Budget Committee Meeting Summary – October 28, 2025

Norfolk County’s Budget Committee met on Tuesday, October 28, 2025, to review the 2026 Rate-Supported Operating and Capital Budgets. The meeting focused on water and wastewater services, including infrastructure investments, operational efficiencies, and long-term financial planning. View the meeting agenda and documents. 

2026 Rate Budget overview 

Council adopted the 2026 Rate Budget with a net rate requirement of $36.1 million, representing a 10% increase over 2025. The increase is primarily driven by capital reserve contributions and debt servicing costs, which together account for over 65% of the net rate requirement. 

The average residential household using 12 cubic metres of water per month will see an increase of approximately $14.83 per month, or $178 annually. 

Capital Investments 

The 2026 Rate Capital Budget totals $8.5 million, with 98% of funding coming from reserves and 2% from development charges. Key projects include: 

• Port Dover Water Tower Rehabilitation ($4 million) 
• Water and wastewater infrastructure renewals across Simcoe, Waterford, Delhi, Port Rowan and Port Dover 
• Port Rowan to St Williams transmission watermain phase 2 engineering 
• Sewage Pumping Station optimization and upgrades 

The 10-year capital forecast totals $425 million, with $189 million expected to be funded through debt, $163 million in unsecured but necessary grant funding, while only $70 million is to come from reserves and $3 million from development charges. 

Infrastructure renewal and operational efficiencies 

Staff highlighted several initiatives to improve service delivery and reduce costs: 

• Inflow and infiltration (I&I) programs in Port Dover and Port Rowan 
• New equipment including a valve nut replacement tool and 360° manhole inspection camera 
• Specialized fleet vehicles and a pilot project for in-house restoration work 
• A proposed high-water leak adjustment policy for residential customers 

Inter-Urban Water Supply (IUWS) 

The IUWS project construction remains on hold pending 66% funding from senior levels of government. The estimated cost is now $575 million. Staff are also exploring a “Plan B” involving expansion of existing groundwater systems and interconnections. 

Rate Study and long-term planning 

A comprehensive water and wastewater rate study is underway and expected to be completed in time for the 2027 budget. It will incorporate: 

• Asset management plan findings 
• Updated growth and consumption trends 
• Fire protection charges review 
• Initial evaluation of stormwater user fees 

Property Tax Subsidy for water/wastewater facilities 

Council debated a proposed subsidy to shift property tax costs for municipally owned water and wastewater facilities from the rate budget to the levy budget. The motion was defeated. The proposed change would have reduced ratepayer costs but increased general property taxes slightly. 

Budget adoption 

Council adopted the 2026 Rate Budget and associated user fees. Council waived the 30-day amendment period under strong mayor powers, allowing staff to proceed with implementation immediately.