Town of Cobourg Approves 2026 Capital and Operating Budget

Cobourg, ON (December 23, 2025) – The Town of Cobourg has approved the 2026 Capital and Operating Budget with a Municipal Levy increase of 2.74 percent.

The 2026 Capital Budget was approved in the amount of $11,273,870 as well as the 2026 Operating Budget of $33,950,843. The Municipal Levy of $33,950,843 represents a 2.74% increase over the 2025 Operating Budget and a 2.74% net increase after allowing for new assessment growth of 1.00% and an infrastructure levy of 1.00%.

“This process was new for Cobourg, as it was the first budget completed under Strong Mayor Powers,” said Mayor Lucas Cleveland. “I’m pleased to see a budget approved that was shaped by community consultation, staff recommendations, and Council’s final deliberation and agreement. Staff’s recommended budget remained below the five per cent directive, while Council carefully reviewed and approved additional funding above the mandate for both the Police and Library.”

Capital Projects Fully Funded Through Reserves
This marks the first year the municipality has not relied on tax levy funding to support capital projects. All capital initiatives are fully funded through existing reserves, demonstrating a strategic and sustainable approach to infrastructure investment.

Funding capital projects through reserves reduces pressure on the tax levy, promotes long-term financial stability, and ensures that current infrastructure needs are met without increasing the burden on taxpayers. This approach reflects prudent financial planning and responsible stewardship of municipal resources.

Budget Process
Mayor Cleveland, under the Strong Mayor Powers, proposed the 2026 budget on Monday, December 8, 2025. The Mayor’s budget was informed by the recommendations of the Community Led Task Force, the Cobourg Public Library budget estimates, Cobourg Police Services budget estimates and the Town of Cobourg staff budget estimates.

Council called a Special Council Meeting to review the budget, which took place on Monday, December 15. At this meeting, Council received community delegations and asked detailed questions regarding the Mayor’s draft budget.

Following their discussion, Council voted on amendments to the draft budget which included: 

The updated budget was finalized and accepted by Council on Friday, December 19, 2025. Under Strong Mayor Powers, Mayor Cleveland is granted an additional 10 days following the Council amendment period of the budget to veto any of the Council amendments. Mayor Cleveland reduced his veto period through written notice to the Clerk and Council on Monday, December 22, 2025. As a result, the proposed 2026 budgets are in effect on Tuesday, December 23, 2025, for the 2026 budget year. 

Increasing Reserve Allocation
In 2024, increasing the Town of Cobourg’s reserves was identified as a key performance indicator to support long-term financial sustainability. Financial sustainability refers to the Town’s ability to maintain service levels and infrastructure without relying on unplanned tax increases or service reductions. As part of this strategy, the 2025 budget introduced a 1% dedicated infrastructure levy. Like many communities across Ontario, Cobourg faces ongoing challenges related to aging infrastructure. This levy helps build appropriate reserves to address major infrastructure needs as they arise. The 1% infrastructure levy is included in the 2026 budget, reinforcing the Town’s continued commitment to long-term financial sustainability. For the 2026 budget, the Town also increased funding for vehicle and building maintenance reserves.

2026 Operating Budget at a Glance

• Finance: Allocation to reserves to support the future replacement of the Town’s Great Plains accounting software. This proactive approach ensures financial readiness for a system transition, minimizes the risk of service disruptions, avoids unplanned or emergency costs, and allows adequate time to evaluate and implement a modern, secure, and well-supported financial system that meets evolving operational, reporting, and regulatory requirements.
  
  
• Building Maintenance: Increased reserve funding to support long-term capital planning for Town-owned buildings. This investment enables proactive asset management, helps spread the cost of major repairs and replacements over time, reduces reliance on debt or emergency funding, and ensures municipal facilities remain safe, functional, and fit for purpose throughout their lifecycle.

2026 Capital Projects at a Glance
Cobourg residents can look forward to the following community projects in 2026.

Victoria Hall Elevator Upgrades
Budget Required: $170,000
Funded by: Victoria Hall Maintenance Reserve

Victoria Hall elevators were installed during the building restoration. The cab interiors are showing their age with some of the paneling peeling, paneling damage, floor finishes breaking up, and basic safety and accessibility features that need to be added.

Traffic Signal Improvements
Budget Required: $500,000
Funded by: Infrastructure Reserve

Following completion of a traffic study in 2024 and design in 2025, this project will include the addition of left-turn (advance) traffic signal heads to existing signals at University Avenue and Division Street and also new traffic signals at the D'Arcy Street and University Avenue intersection. 

Biannual Sidewalk Replacement
Budget Required: $500,000
Funded by: Federal Housing, Infrastructure and Communities Canada fund: $200,000 | Infrastructure Reserve: $300,000

New sidewalks are to be constructed as per the Town's Official Plan and Transportation Master Plan. The Sidewalk Priority Plan is used to determine order of operation and includes: Heath Street, from William to Burnham (213m); University Ave E, from D'Arcy to Campbell (113m); University Ave E, from Major to Campbell (111m); University Ave E, from Campbell to Major (91m); and Munroe St, from Division St to 200m east of Division St (236m). Biannual work includes design in year one (2025), construction in year two. 2026 will include the construction of the proposed sidewalk locations.

Perry Street and Green Street Reconstruction
Budget Required: $230,000
Funded by: Canadian Community-Building Fund Reserve

Work to be completed in 2026 incorporates the project design which includes topographic survey, legal property survey, soil testing to determine disposal requirements and the design of the road and underground infrastructure including tendering activities. This is a joint project with LUSI as the watermain requires replacement. Construction is planned for 2027.

Annual Streetlight Replacement Program
Budget Required: $250,000
Funded by: Infrastructure Reserve

This program supports the ongoing replacement of deteriorating streetlights throughout the Town. To modernize lighting infrastructure, the Town is transitioning to LED lamps, which offer superior efficiency and longevity. This upgrade requires replacing all fixtures, as the new LED lamps are incompatible with existing induction fixtures. To manage costs effectively, fixtures are replaced only as the lamps burn out, allowing for a gradual and budget-conscious transition. This is ongoing throughout 2026.

New E-Dock
Budget Required: $412,500
Funded by: Marina Reserve

The Marina’s E-Dock has required significant repairs over the past few seasons. The metal floats have become perforated, and ongoing repairs are no longer extending the dock’s useful lifecycle. Replacing E-Dock with a new dock will ensure a 25+ year lifespan with regular maintenance. All funds required for the marina maintenance and upgrades come from the marina reserve, with no impact to the tax levy.

To view the final 2026 budget documents, visit www.Cobourg.ca/budget.