Heather Wright/The Independent

Lambton County property owners are looking at a 4.8 per cent tax increase to run their county government.

Treasurer Larry Palarchio gave Lambton politicians the first look at the $312.3 million budget Wednesday. If it is approved with a 4.8 per cent tax increase, it will mean about $24 more for every $100,000 of assessment, pushing the county portion of the tax bill from $498 in 2024 to $522 in 2025.

The budget doesn’t yet include two big-ticket items this year. One is the $10.3 million project to consolidate Lambton Emergency Medical Services in one place at The Western Research Park on Modeland Road.

It also does not include a possible $1.32 million cash infusion for the Research Park which is trying to recover from the pandemic. Rentals at the business incubator dropped dramatically, causing a cash flow problem.

The park’s executive director has asked for $900,000 over the course of 2025 adding the organization may need another $420,000 if that’s not enough. If approved, it would be the second year in a row the county has provided additional funding.

Palarchio says the municipality needs about $4.1 million more from county taxpayers to run. Another $1.1 million will come from new homes in the region.

Some of the 4.8 per cent tax increase is due to increases in wages and benefits and the addition of a new 12-hour shift for paramedics for Sarnia, says Palarchio. That will start in June and cost about $900,000.

The county plans to spend $48.5 million in capital projects in 2025 including the much anticipated $2.6 million roundabout at London Line and Forest Road, the reconstruction of Michigan Line in Sarnia, a $600,000 increase in the affordable housing fund as the county tries to bring new housing on line at Maxwell Place and up to 50 units on Kathleen Streets at a cost of $16.5 million.

St. Clair Mayor Jeff Agar questioned where the Petrolia Line/Kimball Road roundabout stood in this budget. Administrators said it was scheduled to be built 2026.

Palarchio says the county will spend about $18 million from its reserves this year. The proposed budget will also put $18.6 million back into the county’s piggy bank.

The treasurer did voice some concern about the county’s reserves. The county has about $63 million saved for future projects. Palarchio says accounting standards suggest the county should have about $160 million set aside.

And there was a discussion about taking out loans to pay for capital projects. The $10.3 million paramedic building if approved, would be paid with a $1.1 million reserve set aside for paramedic services and a $9 million loan.

Last year, Lambton took out loans for about $27 million to purchase the Shared Service building in Sarnia, for an affordable housing projects on Kathleen Street and Maxwell Place, to start the Small House project at Lambton Meadowview, as well as cash to build a new child care centre at Meadowview. That pushed the debt at the county to over $50 million. In 2023, it was around $10 million.

Palarchio says that while a 4.8 per cent proposed increase may seem high, the county has not kept pace with the rate of inflation in the last five years.

“CPI (consumer price index) has been about 20.2 per cent versus our taxes at 18.95,” he said.

And the treasurer warned that as county council heads into budget talks March 5 “there’s a high level of uncertainty for the Canadian economy.

“There’s a general consensus of us tariffs take effect, there will be a significant impact on the interior economy, potentially having impacts on construction costs on steel, lumber, food prices and so forth.”