2026 Draft Budget – What It Shows updated Feb03rd 2026

This is a plain-language analysis of the Village of Harrison Hot Springs 2026 Draft Budget, based on the budget presentation delivered February 3, 2026.

Big Picture

• The 2026 budget relies heavily on grants, reserves, and carry-forward projects, rather than new, sustainable revenue sources.

• Core services are largely held flat, while capital spending continues at a high level, driven by infrastructure projects.

What Stands Out

• Taxation ($3.19M) remains the Village’s primary revenue lever, compared to Utilities ($1.94M).

• Reserves appear strong on paper (approximately $9M in reserves, $5M in DCCs, and an estimated $6.5M surplus), but much of this funding is already earmarked for specific projects.

• Water and wastewater utilities are described as “self-sustaining,” yet still rely on reserves and DCCs, rather than full lifecycle cost recovery through user rates.

Red Flags to Watch

• Dike & WWTP access road project ($5.56M) is grant-dependent. If grant funding changes, local taxpayers may ultimately carry the risk.

• Continued spending on planning, studies, and incremental upgrades without a clearly articulated long-term affordability or replacement strategy.

• Property tax ratios continue to place a heavier burden on business and recreation classes, despite discussion of “equalization” scenarios.

Bottom Line

This is a manage-the-year budget, not a fix-the-problem budget.
It maintains services and advances projects in the short term, while deferring long-term infrastructure costs and using reserves to keep tax increases politically manageable-for now.