December 22, 2025 — The City’s 2026 Budget has officially been adopted, demonstrating a focus on ensuring affordability for residents during challenging economic times.
Inflation-driven cost increases continue to place pressure on the City’s operating costs, alongside the need to invest in the renewal of critical infrastructure that enables travel, water/waste-water delivery, and recreation in the community. Given economic uncertainty, the 2026 budget prioritizes affordability, while ensuring critical capital investments move forward.
The City’s $196.4 million operating budget reflects a 4.21 per cent increase to tax-supported operating expenses, translating to 3.95 per cent increase on the City portion of property taxes inside the transit levy area, and 3.82 per cent outside the transit levy area. The increase will see taxpayers inside the transit levy area paying an additional $42 per $100,000 of assessed home value in 2026.
In preparing the budget, the City prioritized mitigating increases to property tax by limiting some capital expenditures, including a proposed $91.1 million new station for the Sarnia Police Service, while at the same time reducing transfers to reserves.
While some capital projects have been deferred, the budget will continue an aggressive infrastructure renewal strategy. Over the previous five years the City has invested $262 million in capital, representing a 34 per cent increase in capital spending, including record setting road resurfacing, shoreline protection, flood mitigation, recreation facility renewal, a new fire station, combined sewer separation, harbour facilities, transit terminal improvements and more.
The 2026 Budget includes $65.5 million for infrastructure renewal and improvements, including:
- $3.6 million for City recreation spaces and facilities
- $4.1 million in road resurfacing
- $1 million in shoreline protection
- $11 million for the extension of Wellington Street to facilitate growth in the east end of the community
- $2.1 million in transit fleet expansion and replacement
- $10.9 million in combined sewer separation to protect the water system against extreme weather events
- $2 million for flood mitigation
- $7.8 million in sewer/water/road reconstruction on Copland Road and Kathleen Avenue
- $4.5 million on St Andrews Street Treatment Plant rehabilitation and process improvements
- $2 million for the Bright’s Grove Library
The 3.82 per cent increase applies only to the City portion of property taxes, and the total impact to tax bills will depend on both County of Lambton and school board rates once finalized.