Atikokan mayor uses Strong Mayor’s Powers to push for maximum 2% tax increase

Atikokan’s Mayor wants his community’s 2026 budget kept to a 2% increase or less.

Rob Ferguson is utilizing new provincial legislation to establish the benchmark and direct town administration to commence work on the budget earlier.

Atikokan was one of several northwestern Ontario communities granted Strong Mayor’s Powers, which included a mayor’s ability to propose a municipal budget.

Ferguson says while he appreciates that council works best in a democratic and consensus-based approach, he felt it necessary to issue the directive to improve the budget process and have it completed sooner.

“So by moving the budget forward sooner, it’s gonna give stability to the taxpayers and it’s gonna give Administration more time to get to work on the work that they propose in 2026,” says Ferguson.

Ferguson says it also falls in line with the town’s strategic plan that recommends a budget being completed sooner than in previous years.

He has set February 1st, 2026, as a deadline for Administration to have a draft budget before council.

He is also instructed department heads not to cut services in their efforts to achieve a 2% budget.

“Further discussion can also take place if department heads recommend additional spending outside the initial draft budget, though anything above the 2% property tax increase would have to come from reserves or grants. Borrowing may be considered under certain circumstances of what would be a last resort,” says Ferguson.

Councillor Brian Stimson worries it could force the need for higher increases in the future.

“Two percent is going to be great for people with the taxes, but if we hit them with a 4 or 5% next year because we’re behind, then you watch. Then they’ll really be hurting,” says Stimson.

Under the Strong Mayor’s Powers, council can not increase the limit set by the mayor, but they can approve a budget with a smaller increase.

Council approved its 2025 budget in June, which included over $22 million in spending and a 3.55% tax increase.