Warwick Township council has approved an $11.5 million budget for 2023 that comes with a 3.5 per cent tax increase.
Council approved the general levy increase during a special meeting on Friday.
The tax hike adds just over $21 per $100,000 of residential assessment on the municipal portion of the property tax bill.
Mayor Todd Case said 2023 will be a "challenging year."
"We did receive an increase in our insurance rates, that alone almost equals a three per cent tax increase, we also had the debt from the past year with the new community centre and new office facility," said Case. "So, a 3.5 per cent increase in the budget seems to be a reasonable one considering all the new debt that's been brought on by the municipality, as well as the insurance increase."
Approximately $91,000 will be drawn from reserves to cover a funding shortfall in the nearly $7.8 million operating budget.
The capital budget amounts to just over $3.7 million.
"We do have a lot of road work planned in the township area of the municipality. There's three projects that need to be tended to and our hope is that there's going to be more infrastructure dollars freed up by the provincial government soon, that we're going to be able to hopefully apply for and be able to do even more."
Construction of a new $1.1 million salt shed was approved, as was $629,000 for the reconstruction of Zion Line, which had been pushed to 2023.
"Last year was a big budget issue from that project standpoint, where the costs came in way, way, over and above. So, this year we've upped the budget and we're going to make sure that road gets the attention it needs."
Birnam Line will see nearly $573,000 in repairs and $300,000 has been dedicated to the Sunset/Erie/St. Clair and John Street water main infrastructure.
Mayor Case said structural repairs, amounting to $650,000, are planned at the Watford Fire Hall.
"That's an ongoing situation from the past two years. There's some major brick work that needs to be done on the back wall to make sure that it's secure. So, it's a health and safety issue that needs to be tended to."
Council also approved over $100,000 in upgrades for both the Watford museum and library.
"The Carnegie Library, which is very much one of the gems in our community, does need some attention. It needs a new roof put on, as well as some foundation repair. We really do have to make sure that we continue to look after that asset and make sure that it's in good repair going into the future."
Lambton County council will consider its 2023 budget during deliberations on March 1.