Saturday morning thoughts on our municipal finances

This may be a longer post, but I believe it is important because it concerns our money. So grab a tea or coffee and find a comfy spot for this read.

If you have read my introduction, you know I am new to the area and a neighbour, not a politician. Even before the election was called, I took the time to review the Township’s budgets and financial information to understand where my money was being spent. Now I’m deep into the numbers.

I may not have every number or interpretation perfect, but this is how I see it. The information I am sharing comes from the Township’s public financial information.

I have seen the chart comparing Greater Madawaska’s debt and reserves during the current council term. Those numbers are public and worth examining.

But a debt chart alone does not tell the whole story.

To understand our Township’s financial position, we also need to ask what the borrowing is being used for, how growth is contributing, and how much of the cost is being carried by existing taxpayers.

Long-term debt was approximately $906,925 in 2018, $3.03 million in 2022, $3.33 million in 2024, and $4.72 million at the end of 2025.

Those are significant numbers, and I believe residents are right to ask questions about them.

At the same time, the Township has been investing in roads, equipment, buildings and other infrastructure that our community needs.

And there is an important distinction when we talk about that debt:

Not all municipal borrowing is funded in the same way.

In 2024, the Township’s $453,484 Matawatchan Road debenture was entirely Development Charge-funded.

In 2025, approximately $1.86 million in new debenture financing included about $1.50 million supported by Development Charges and approximately $363,000 supported by the tax levy.

That is an important part of the story because Development Charges are specifically intended to help pay for eligible infrastructure associated with growth.

Greater Madawaska has also changed its approach to Development Charges. In 2022, Council approved a new Development Charge by-law, moving toward the principle that growth should pay for a greater share of the infrastructure required to accommodate that growth.

Growth also generates revenue.

In 2024, building permits generated approximately $115,000, while Development Charges brought in approximately $215,000.

In 2019, those figures were approximately $64,500 in building permits and $92,000 in Development Charges.

That shows that development is generating additional revenue for the Township.

Now, there is another number that has been raised: the additional $461,785 in borrowing included in the 2026 budget.

That should absolutely be part of the discussion.

But we also need to look at what that borrowing is for and how it is being funded.

The 2026 borrowing is levy-supported, meaning it is being paid for through the Township’s tax-supported finances and is primarily being used for replacement and rehabilitation of existing infrastructure.

That is different from the large portion of the 2025 borrowing that was supported by Development Charges.

So when we talk about municipal debt, I think we need to ask more than simply:

“How much debt do we have?”

We should also ask:

What are we borrowing for?

How is it being funded?

Is it related to growth or replacement of existing infrastructure?

How much is being paid for by new development?

How much is being paid for by existing taxpayers?

And are we investing enough to prepare Greater Madawaska for the future?

Greater Madawaska has aging roads, trucks, fire equipment, buildings and other infrastructure that must eventually be repaired or replaced.

We cannot simply stop investing because those investments appear as debt.

But we also have a responsibility to make sure we borrow responsibly, use Development Charges properly, maintain healthy reserves where possible, and make sure existing taxpayers are not carrying costs that should properly be associated with new development.

I have used these numbers in another post for ease of reference. They are available through the Township’s public budget and financial information.

Greater Madawaska also continues to have one of the lowest municipal tax burdens in Renfrew County. For 2026, the Township’s municipal portion on a $200,000 assessment is $1,065.39.

So yes, let’s discuss debt.

Let’s discuss reserves.

But let’s also discuss investment, growth, infrastructure and where the money is actually coming from.

These are the questions I am asking as a neighbour — not just because I am running for council.

I believe we can support responsible growth, invest in the infrastructure our community needs, and remain responsible stewards of taxpayers’ money.

That is the financial conversation I want to have with Greater Madawaska.

Keep what works. Improve what doesn’t. Plan for what’s next.

Have a great weekend, everyone.