Chatham-Kent officials push province to lift funding cap as 2026 budget proposes 4.9 per cent tax hike

Chatham-Kent is calling for Ontario to remove the infrastructure funding cap as budget talks take place. CTV Windsor’s Chris Campbell explains.

Municipal officials in Chatham-Kent say a provincial funding cap is putting added pressure on local taxpayers as the municipality proposes a 4.9 per cent tax increase in its 2026 budget.

Mayor Darrin Canniff said Chatham-Kent is one of only three municipalities in Ontario limited by a cap on the Ontario Community Infrastructure Fund (OCIF) — a program designed to help small and rural municipalities maintain roads, bridges, and other essential assets.

According to the province’s own funding formula, Chatham-Kent should receive roughly $29 million in OCIF funding next year, but is instead capped at $10 million, leaving a $19 million shortfall.

“There’s only three municipalities in the entire province that have that cap,” Canniff explained.

“We’re shortchanged in this whole funding formula by $19 million. We’re very hopeful that the province will step up and fill that gap. It’s a plea for help that we’re asking to make a huge difference in our infrastructure spending here in Chatham-Kent.”

The municipality maintains more than 3,500 kilometres of roads, 4,000 kilometres of drains, and more than 1,000 bridges and culverts — one of the largest rural infrastructure networks in Ontario.

Budget Chair Brock McGregor said removing the cap would significantly reduce the need for local tax increases.

“There are only three municipalities in all of Ontario that are capped for OCIF funding. We’re one of them,” McGregor said.

“Right now, that’s leading to a $19 million shortfall in infrastructure funding. We’re not asking for special treatment — we’re asking for equitable treatment. We just want to be funded according to the formula the province created.”

Municipal staff said the 4.9 per cent increase equals about $104 more in property taxes for every $100,000 of assessed value. Of that increase, roughly two percentage points are directly tied to the lost provincial funding.

“Anytime there’s an increase, we weigh the impact that has on the community,” McGregor stated.

“It’s only about one per cent to maintain existing services, and there are no cuts to any rural services, no cuts to any services, no changes in service levels. We’ve heard from the community that’s really important. The increases are really about infrastructure and sending a message to the provincial government that we need help.”

Canniff said the municipality has already found over four per cent in efficiencies, which helped limit the overall increase, and stressed that the recently approved Community Hub project will not affect this or future budgets.

“There’s no impact from the hub in this budget or the next,” Canniff said.

“We’ve saved up for that and will be looking for sponsorships and other funding to help offset those costs.”

The mayor said both local MPPs are aware of the OCIF cap issue and are working to bring it to the province’s attention.

“Our local representatives are very aware of it and have been working toward getting this fixed,” Canniff said.

“I’m confident that the province will step up and help us in the situation we’re in.”

McGregor noted residents will have several opportunities to share feedback before council begins formal deliberations later this month, including through the CK Let’s Talk online platform and public deputations.

Canniff told CTV News the goal remains to keep Chatham-Kent’s infrastructure strong while investing in projects that make the community more attractive to future generations.

“This budget supports a long-term community,” he said.

“We’re making investments that will benefit future generations… is going to make our community more attractive. I believe this budget does that subject to our constraints of the capital we have, we are investing in our future."