The first draft of the City of Sault Ste. Marie's 2026 budget is calling for a 5.39 per cent levy hike.
The lion's share of that proposed increase doesn't come from city spending.
In a report prepared for a city council budget on Monday, city CAO Tom Vair will ask for an increase in his budget of just 1.89 per cent.
But the city also collects taxes on behalf of levy and local boards over which it has little or no control.
When those amounts are added in, the total proposed municipal levy increase jumps to 5.39 per cent.
That figure will almost certainly be reduced after city councillors attack the increase with their cost-cutting machetes, but one big cost that's largely inaccessible to them is the police budget.
"The recommended budget increase of nearly 11 per cent by the Police Services Board represents an increase of approximately $4.3M to the levy," says CAO Vair in a report prepared for Monday's budget meeting.
"Background Budget 2026 has been carefully prepared by staff recognizing budget pressures and community challenges that are anticipated in the coming year," Vair says.
"The recommended increase to winter control budgets of $950,000 is an important step to properly fund winter control expenses and, in years with lighter snowfall, re-establish winter control reserve funds in the future.
"While there are a number of positive things happening in the community, the job losses planned at Algoma Steel with the transition to electric arc furnace steelmaking and the additional uncertainty created with the tariffs imposed by the United States across a number of sectors present challenges to employers and residents.
"Staff developed the 2026 budget with these factors in mind. Council will note that requests for service level changes have been pared down significantly to include only those items referred to budget from council reports in 2025 and items requested by council.
"There is only one staff complement change being brought forward in 2026 with no levy impact, although requests for additional complement were made by departments within the budget process." Vair writes in his report to Mayor Matthew Shoemaker and ward councillors.
"Staff have developed the 2026 operating budget in a prudent manner, maintaining the level of services currently provided by the city while trying to mitigate the impacts of cost increases.
"Sault Ste. Marie continues to compare favourably to our northern Ontario comparators, particularly in the level of property taxes," Vair says.
The 2026 capital budget proposes spending $47.8 million on infrastructure renewal and upgrades, asset renewal, and fleet upgrades for the city's transit, public works and fire departments.
Over 58 per cent of the capital budget is directed to roads, bridges, and storm sewer work, Vair says.
"Of the service level changes proposed, the security patrols in the downtown area are recommended as a priority.
"Metrics to date from the security patrols indicate that a number of incidents are being addressed by the private security guards. The guards also provide a visible presence in the downtown to help address resident concerns.
"The security patrols are supported by police services as they are not able to provide continual foot patrols to the extent offered by the contracted private security firms.
"Contracted private security services also represent a less expensive option versus other alternatives."
Mondays city council and regular council meeting will be livestreamed on SooToday starting at 5 p.m.