Budgets
One of the most important tasks for Council is setting the municipality’s annual operating and capital budgets.
2026 Budgets Adopted
The 2026 municipal operating and capital budgets were officially adopted following the Council meeting on January 13.
Mayor Steve Ferguson presented the budgets that were informed by three days of Council deliberations in early December, 2025. Council voted to forgo the 30-day amendment period allowed in the Municipal Act under the strong mayor powers and duties.
The tax-supported operating budget of $87.7 million — $56.8 million raised through taxation — will fund the delivery of services such as road and bridge maintenance, garbage pick-up, policing, recreational programs, emergency services, libraries, museums, community services, and long-term care.
The 2026 budget funded by municipal taxes requires a rate increase of 3.56 per cent. This increase will result in a homeowner paying an additional $37.38 annually, or $3.12 monthly, per $100,000 of assessed home value.
The capital budget of $22.6 million for 2026 will pay for road repair, construction, and replacement and the equipment to support that work, a land ambulance, and improvements to several recreation amenities and municipal properties.
Council also adopted the water and wastewater capital budget of $6.5 million and the operating budget of $12.7 million. The water and wastewater budget is supported entirely by rates; no property taxes go toward water and wastewater services. The water and wastewater rates for the period of 2022-2026 were approved through a Council by-law in 2021.
New Budget Process
Under Section 284.16 of the Municipal Act, 2001, the Mayor as head of Council is required to prepare a proposed budget for the municipality and present it for Council’s consideration. The Mayor cannot delegate this responsibility. However, Mayor Ferguson directed staff to prepare and propose the 2026 budget for Council’s consideration.
County Council participated in a special meeting from December 1-3 and December 5 to consider the 2026 draft budget.
Budget Background
How are your tax dollars spent?
Your tax dollars support the delivery of a wide range of public services and programs. That includes everything from public safety (policing, by-law enforcement, provincial offences administration) to transportation services like road and sidewalk maintenance and snow plowing.
Your tax dollars also support recreation services and facilities, waste management services, long-term care services, and planning and development. A portion of your tax dollars are also directed to external agencies and boards that in turn deliver health and social services, library services, and conservation services for Prince Edward County.
Budget Basics
What is the difference between operating and capital budgets?
The operating budget details what the County will spend on programs and services during a given year and where the money will come from to pay to deliver those programs and services.
The capital budget outlines the County’s plan for funding the snowplows, fire trucks, vehicles, roads, buildings, and other infrastructure that support the delivery of programs and services.
Frequently Asked Questions
Property taxes are levied to all property owners for goods and services used by the broader public or for public good. These programs and services are things such as climate emergency costs, affordable housing initiatives, and roads maintenance.
User fees are paid by individuals for municipal services that are a direct benefit to the individual. For example, someone wishing to rent a town hall for a wedding reception, or someone seeking to rent the ice pad for a family skate.
County staff maintain a system of internal controls to ensure assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the consolidated financial statements.
Consolidated financial statements reflect the municipality’s assets, liabilities, revenues and expenses. As required by the Municipal Act, financial statements are prepared annually by staff and are audited by an external auditor for the County in accordance with generally accepted accounting principles for local governments. The Audit Committee meets with management and the external auditor to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements.
Property taxes are the largest source of revenue for the County. Other revenue sources include federal and provincial funding, user fees and charges. The Ontario Municipal Act limits how the County and other municipalities in the province can generate non-tax revenue
In 2017, the Ontario government gave municipalities a new revenue tool in the Municipal Accommodations Tax (MAT). In 2021, the County implemented a 4% MAT on short-term, roofed accommodations, paid by visitors. By law, half of this is transferred to local destination marketing organizations to spend on tourism marketing and development, the other half stays with the municipality to support investments in tourism-related community programs and infrastructure.
Previous Budget Reports
2025
2024
2023
2022
2021
If you wish to request any of these documents in an alternative accessible format, please contact the County’s Finance Department.