The Township of Pelee is set to approve its 2026 budget on Tuesday, with just under $7 million in planned spending this year.
The tax increase comes in at 2.98 per cent, and the municipal levy rises by about $100,000.
The island is home to nearly 235 permanent residents.
The budget continues long-term planning and infrastructure work, including shoreline protection, drainage projects, road equipment, marina upgrades, and repairs to the East Shore water system.
Mayor Cathy Miller said Pelee is financially stable and debt-free, but with only about 235 permanent residents, the township’s small tax base can’t support all the capital work that’s needed.
She says Pelee must bring in new revenue sources and follow its asset management plan to prioritize repairs and gradually increase funding.
"There's guidelines in our asset management plan that tell us where our taxation needs to be," Miller said.
"We're moving in those steps, we're moving in the right direction to get to that point. I think this budget, along with the last that I've been apart of, and truly over the past few terms of council reflect a responsible, steady approach, a conservative approach to managing the finances of the township."
With policing costs climbing, Miller said Pelee is hitting the province’s 11 per cent cap, which equated to a $12,030 rise in costs.
"A lot of small municipalities are speaking out about this and the province agreed to cap increases at 11 per cent annually, so I think what you're seeing in the Township of Pelee is that they've acknowledged that costs might have increased more than 11 per cent, but they've capped it and they've increased the cost to the township to the maximum amount which is 11 per cent," said Miller.
Staffing costs are down about 2.5 per cent this year, thanks to efficiencies and lower benefit premiums.
Miller said employees are set to receive a 3 per cent cost-of-living increase.
"I like to see that. I think our township employees deserve to be compensated appropriately so it's top if mind for me," she said.
"There is an overall reduction and some of that is attributed to investing in equipment, technology, things that make it easier for the people that are there to do their jobs a little more efficiently."
The budget also includes the first council pay bump since 2018, with a 10 per cent raise spread across members.
Pelee council meets Tuesday at 6 p.m.