Grey County projects $1.27M deficit for 2026; staff advise against 40 km/h in Feversham

Grey County is projecting a year-end deficit of $1,269,800 for 2026, according to a financial update presented to county council on Oct. 22.

The corporate financial update, which covers spending to the end of August, compares the projection with a budgeted levy of $83,951,800 for 2026. Staff describe the report as "a snapshot in time" and say the numbers will keep changing as the year goes on.

Grey County taxpayers, including those in Chatsworth, fund the county levy through their property tax bills.

Most of the deficit is 2025 work finished this year

According to the report, $943,700 of the projected deficit comes from four projects that were approved and awarded in 2025 but not finished until 2026. Their money was not budgeted again for 2026, so it shows up as a deficit this year. The report says the funding is still in reserves and can be used to cover the projects through the year-end surplus and deficit report.

The four projects are:

• a motor grader, $584,400
• roof repairs at the county administration building, $192,000
• air handling units at Grey Gables, $110,000
• a housing roof replacement at 17 Legion Road in Meaford, $57,300

The county's highlights also list high software renewal costs, higher fuel costs, higher winter maintenance costs and court security costs among the other causes. In the report, Information Services projects a $74,000 deficit because of higher than expected software costs, and court security projects a $97,000 deficit. Transportation Services projects a $534,700 operating deficit, partly because a severe winter early in the year drove up overtime and the cost of materials including fuel, salt and sand.

Staff say the final figure will be set when the 2026 books close, and a year-end report will recommend how surpluses and deficits move to or from reserves. Council received the report for information.

Speed limit and parking changes proposed

Council also discussed a staff report proposing changes to the county's traffic and parking by-law, By-law 4788-13. The report recommends that a by-law be brought forward for council to consider. The amendments have not yet been passed, and the county's highlights do not say council has voted on them.

The proposals, according to the report:

• Grey Road 2, Feversham (Grey Highlands): Staff do not recommend lowering the speed limit in the village from 50 km/h to 40 km/h, which Grey Highlands had asked the county to consider. The report says the road's characteristics support a higher speed and a lower posted limit "is unlikely to materially influence driver behaviour." Staff do recommend a new community safety zone around Hundred Acre Wood School.
• Bruce Road 10, Elmwood (West Grey): Extend the 50 km/h zone to 750 metres north of Queen Street East and move the 500-metre, 70 km/h transition zone farther north, because of a sightline concern.
• Grey Road 13, Heathcote: Keep the 50 km/h limit rather than lowering it to 40 km/h, and add a new 500-metre, 60 km/h transition zone at the south end of the village. Staff recommend no change to the existing community safety zone.
• Grey Road 12, west of Meaford: A new community safety zone near the Georgian Heights Church of God in Christ, which the report says is also used as a school.
• Grey Road 15 (3rd Avenue East), Owen Sound: Update the by-law to match parking the city has already changed, replacing metered parking between 8th and 10th Streets East with two-hour and 10-minute zones. The meters were removed several years ago.

Fines for many traffic offences, such as speeding, are doubled in community safety zones. Staff estimate the sign changes would cost about $3,000.

In brief

• Asset management plan: Council endorsed the 2025 Grey County Asset Management Plan, which puts the replacement value of all county assets at $2.6 billion. The staff report says 89 per cent of those assets are in fair or better condition and recommends keeping the county's practice of a 2.55 per cent yearly levy increase for asset management, to reach its investment target by 2038.
• Paramedic award: Council recognized Paramedic Chief Kevin McNab, who received the 2026 Richard Armstrong Leadership Award from the Ontario Association of Paramedic Chiefs. The county says he was this year's only recipient.
• Feversham base: Chief McNab highlighted the Oct. 23 grand opening of the new Feversham paramedic base at 494140 Grey Road 2. The county says the project cost $2.4 million. Our earlier story has the details.

The county notes its highlights are not the official record; the meeting minutes are. A recording of the meeting is on the Grey County YouTube channel.

Sources: Grey County, "October 22 Meeting Highlights" (grey.ca, Oct. 26, 2026, also emailed to the Banner); Grey County reports FR-CW-21-26 (Corporate Financial Update, Aug. 31, 2026), TR-CW-30-26 (Amendments to By-law 4788-13) and FR-CW-22-26 (2025 Asset Management Plan), Oct. 22, 2026 agenda; Grey County news releases of Oct. 22, 2026 (McNab award) and Oct. 9, 2026 (Feversham base).