How Could Owen Sound
  Save $4.1 Million?

Owen Sound faces a difficult financial question: how can the City manage rising costs,
maintain essential services and address residents' concerns about affordability?

One approach worth examining is Zero-Based Budgeting (ZBB) — a process that requires departments to explain and justify their spending rather than automatically carrying forward previous budgets.

 

The Spending Question

My 2023 Municipal Services Review found that Owen Sound spent approximately $11.9 million more than the average of the comparable municipalities examined in that study while delivering similar services. That comparison raises questions about the City's costs and how effectively its resources are being used.

The review is based on 2023 information. It should be treated as a starting point for further examination, not as proof that the entire difference could be eliminated or that the same gap remains today.

Read the 2023 Municipal Services Review

What Is Zero-Based Budgeting?

In a conventional incremental budget, the previous year's spending is generally the starting point. Departments propose adjustments for inflation, wages, new initiatives and other changes.

Zero-Based Budgeting takes a different approach. Departments are asked to build their budgets from a fresh starting point and justify the resources they request against current needs, priorities and expected results.

That is the central question behind the proposal. Each program and expenditure would be considered on its present merits rather than being protected simply because it has existed for years.

What Would Change?

ZBB does not mean that every department must literally spend nothing at the beginning of the year. It means that the budget process requires a fresh justification of spending rather than relying solely on historic allocations.

Where Could Savings Be Found?

A thorough review could examine opportunities in several areas. The purpose would be to identify spending that can be reduced, redesigned or redirected while maintaining services and meeting the City's legal and contractual obligations.

• Administrative structure: Identify overlapping responsibilities, unnecessary duplication and opportunities to simplify processes.
• Management: A comparison with Cobourg, a nearly identical municipality to Owen Sound found Cobourg employed 9 fewer managers.
• Programs and services: Examine utilization, outcomes, costs and whether existing approaches remain appropriate.
• Staffing and vacancies: Review workload, organizational needs, vacancies and options for improving productivity.
• Procurement: Assess purchasing practices, contract terms, competitive pricing and opportunities for shared purchasing.
• Operating practices: Look for inefficient procedures, avoidable expenses and opportunities to improve how services are delivered.
• Performance measures: Connect spending proposals to measurable outputs and service standards.

These are areas for investigation, not findings that particular departments or employees are wasting money. Any proposed reduction should be supported by evidence and an assessment of its effects on residents.

Why Consider It for 2027?

The 2027 budget provides an opportunity for Council to examine whether the current process is producing the information and scrutiny taxpayers need.

My earlier correspondence to Council in 2021, the Road to Recovery article in 2022 and the 2023 Municipal Services Review raised questions about municipal costs and the potential for greater financial discipline.

The next step is to assess the current budget process, determine which elements of ZBB are already used and identify what additional work would be required to implement a more comprehensive review.

What Might $4.1 Million Mean?

The 2026 budget document cited in this proposal reports approximately $41.2 million in budgeted expenses. Applying an illustrative 10% reduction gives:

The relationship between operating expense reductions and the tax levy is not necessarily one-to-one. The effect on the levy would depend on revenues, grants, reserve transfers, assessment growth, service decisions and other budget adjustments.

For that reason, the proposed savings should not automatically be described as an 11% tax levy reduction. Council would need to publish a detailed reconciliation showing how any verified savings affect the amount raised from property taxes.

View the 2026 Mayor's Budget

Public Participation and Accountability

Budget decisions determine which services receive resources, which initiatives proceed and how much taxpayers are asked to contribute. Residents therefore have a direct interest in being able to understand and comment on the City's priorities.

The proposal for a more comprehensive budget review should also include clear opportunities for public scrutiny. Residents need enough information and time to understand proposed changes and provide meaningful feedback before decisions are finalized.

A transparent process could include:

• Publishing departmental budget requests and explanations.
• Providing year-over-year comparisons and service measures.
• Identifying proposed increases, reductions and new initiatives.
• Holding public meetings with adequate time for questions.
• Publishing Council's decisions and the reasons for them.
• Reporting actual spending and results against approved budgets.

What Are the Limitations?

Zero-Based Budgeting is not a guarantee of savings. It can require substantial staff time, careful preparation and clear guidance from Council. A poorly designed process can create paperwork without improving decisions.

Some municipal expenses are difficult to change quickly. Collective agreements, legislation, infrastructure needs, emergency services and long-term contracts can limit the available options.

A realistic implementation should therefore:

• Protect public safety and legally required services.
• Account for the full cost of proposed service changes.
• Use consistent criteria to evaluate departmental requests.
• Allow adequate time for staff preparation and Council review.
• Track whether expected savings are actually achieved.

Council could also consider a phased approach, beginning with selected departments or major spending categories, and evaluating the results before expanding the process.

A Decision About the Budget Process

Zero-Based Budgeting offers Council a framework for asking more detailed questions about spending, priorities and results. It does not determine which services matter most or automatically establish which expenditures should be cut. Those remain decisions for Council, informed by evidence and public input.

The $4.1 million scenario illustrates why a detailed review may be worth considering. Whether that amount or any other savings target is achievable can only be established through a documented examination of the City's finances and service requirements.

Taxpayers should be able to see what the City spends, why it spends it, what residents receive in return and how Council evaluates the results.

Election information: The City of Owen Sound confirms that the 2026 municipal election voting period runs from October 16 at 10:00 a.m. to October 26 at 8:00 p.m. The City's certified candidate list is available on its election website. COST's reference to “20 new voices” refers to COST's own identification of candidates who have never served on Owen Sound Council; it should not be confused with the City's total number of certified candidates.
City of Owen Sound — Certified Candidates   |   City of Owen Sound — Voter Information