December 23, 2025 update:
Town of Cobourg Approves 2026 Capital and Operating Budget

The Town of Cobourg undergoes an annual budget process to align the financial resources required to provide the programs and services that establish the high quality of life residents enjoy in our community.

This year, Mayor Lucas Cleveland, under Strong Mayor Powers, is presenting the proposed budget to the community. The Mayor's Budget was developed with insight from Town staff and the Community Led Task Force recommendations. The Mayor also received community feedback during his door knocking this year and the Manufacturer's tour.

On December 15, 2025, during a Special Council Meeting, Council reviewed, deliberated and amended the proposed Mayor’s 2026 Operating and Capital Budget.

At that meeting, the following changes were made to the Mayor’s proposed budget:

• Affordable Housing Reserve: Approval to utilize $500,000 from the Affordable Housing Reserve.
• Long-Range Planning – Development Budget Updates:

• Special Project – Heritage Conservation District Plan revised from $100,000 to $0.
• Special Project – Downtown CIP Incentive Program revised from $50,000 to $0.
• Both projects were previously funded through recoveries; the corresponding reserves were also reduced to $0, resulting in no impact on the tax levy.
• Police Reserve Utilization: The use of Police reserves was revised from $1,113,000 to $600,000 reducing the budget from $9,451,088 to $8,851,086 or 20.50% to 12.85%.

Summary of Changes:

Item	Mayor’s Budget	Council’s Amendments
Affordable Housing Reserve	0	$500,000
Heritage Conservation District Plan	$100,000	$0
Downtown CIP Incentive Program	$50,000	$0
Recoveries Long-Range Planning	$-150,000	$0
Police Reserve Utilization	$1,113,000	$600,000
Overall Tax Levy	2.70%	2.74%

The following budget documents are updated to reflect the December 15 amendments:

• Operating Budget
• Capital Budget
• Environmental Operating Budget
• Environmental Capital Budget
• Stormwater Budget
• Police Operating Budget
• Police Capital Budget
• Discretionary Reserves – 2024
• Obligatory Reserves - 2024

As per the Mayor’s directives, the 2026 Operating and Capital Budget has been informed by staff and community recommendations:

• Mayor Cleveland directed staff to prepare budget estimates with a levy not to exceed 5% before growth.
• Mayor Cleveland directed the Cobourg Public Library to submit a budget to him with a total percentage increase of up to 3%.
• Mayor Cleveland requested the Cobourg Police Board submit to the Mayor, a total budget request percentage increase of no more than 4%.
• Mayor Cleveland directed the Town to enter into an independent consultant agreement with David Dexter to lead and engage in a community led task force that will review all financial options with the outcome to recommend a "community formed" set of recommendations to be presented to the Mayor as part of the process to support the creation of the final 2026 Operating and Capital Budget.
• Using the feedback gathered by the Community Led Task Force, in concert with the estimates provided by staff, the Cobourg Public Library and Cobourg Police, the Mayor to present the proposed 2026 Operating and Capital Budget.
• Using the proposed 2026 Operating and Capital Budget, create an engagement plan led by Corporate Communications Team and that such a strategy be provided to the Mayor for approval prior to implementation.

• Operating Budget
• Capital Budget
• Environmental Operating Budget
• Environmental Capital Budget
• Stormwater Budget

• As per the Mayor's directive, he has directed staff to engage the community
• On December 8, the proposed budget was released.
• Special Council Meeting called for Monday, December 15 at 10:30 a.m., where Council may bring forward amendments.
  • Members of the public who wish to speak to Council may attend the meeting in-person or electronically. Speakers may speak for up to 10 minutes of uninterrupted time and only on the matter pertaining to the item. To speak in-person, please fill out a Request to Speak form at the meeting and provide it to Clerk’s staff at the meeting. You do not need to submit in advance,If you prefer to attend electronically via Zoom, submit a completed Request to Speak Form to clerk@cobourg.ca by 12 p.m. the business day prior to the meeting (Friday, December 12) and you will be registered as a virtual speaker.
• Regular Council Meeting on December 17, 2025 will revisit the amendments
  • Members of the public who wish to speak to Council may attend the meeting in-person or electronically.
• Under Ontario’s strong mayor powers and Cobourg’s Procedural By-law, Council has 30 days from December 9 to suggest amendments or waive the review period.
• If no changes are made during those 30 days, the budget is deemed adopted.

Mayor Cleveland directed the development of a Community Led Task Force (Task Force) to review financial options and provide community driven recommendations regarding the 2026 Operating and Capital Budget.

Mayor Cleveland directed that the Town enter into an Independent Consultation Agreement with Cobourg resident, David Dexter, to led the Task Force. Mr. Dexter has more than 30 years experience working in the public sector.

The Task Force, comprised of individuals from the community who volunteered to participate, met five times to review the current and upcoming financial challenges of the Town, as was presented to Council in the May 5 Financial Sustainability Plan report. The final report was made public on Friday, December 5, 2025.