Cochrane Proposes 6.45% Tax Increase in 2026 Budget Draft

The Town of Cochrane is facing a significant financial challenge, with a projected deficit of $667,000 and a potential tax increase of up to 6.45 percent for the year 2026. This information emerged during a special town council meeting held on February 23, 2026, where the first draft of the operating budget was discussed.

Cochrane’s Treasurer, Julie Belhumeur, presented a budget draft indicating an anticipated revenue increase of $553,260 (approximately 2.9 percent) for 2026, which would bring total operating revenues to $19,705,255. However, expenses are projected to rise by the same amount, leading to a balanced budget only on paper. “Because we used a tax-rate stabilization last year of $250,000, we start off in a negative position,” Belhumeur explained. This practice has raised concerns about the sustainability of budget balancing methods.

During the meeting, Mayor Peter Politis questioned the implications of the proposed tax increase, noting that it would effectively raise the tax levy by 10.3 percent. Belhumeur clarified that growth in property tax revenue contributes to the difference between the proposed tax increase and the tax levy. The growth is attributed to new home additions and developments not previously accounted for.

Belhumeur emphasized the urgent need to address the existing deficit, stating, “What we need to find, prior to any other increases, is funds to offset the deficit of $667,000.” The proposed tax increase would directly correspond to this shortfall.

Politis sought further clarification regarding the budget comparisons with the previous year’s actuals, suggesting that they provide a clearer picture than budgeted figures. Belhumeur responded that actual figures for 2025 are not yet finalized, which is why the council has relied on budgeted amounts for benchmarking.

As the council examined individual departmental budgets, several noteworthy changes were highlighted. For instance, the General Government category is set to increase by 20.9 percent, reflecting a total draft budget of $2,871,337. In contrast, the Environmental Services budget is expected to decrease by 37.3 percent, bringing it down to $95,731.

The Protective Services sector, including fire and policing, is projected to see an increase of $309,907, while the Transportation budget for roads and transit is set to increase by 4.9 percent, amounting to $2,980,800. However, the Transportation budget for the airport is experiencing financial challenges, with a projected deficit of $166,979 largely due to fluctuating fuel revenues and operational suspensions.

Politis raised concerns regarding the impact of these increases on the overall budget, especially considering the additional wish list items totaling $601,096 proposed by the Public Works Department. “It would be literally a 30 percent increase, over top of what we have already been over budgeting,” he stated, indicating the need for careful financial planning.

As discussions continue, the council aims to refine the budget before the final approval, ensuring that the community’s needs are met while addressing the fiscal realities that Cochrane currently faces. The budget draft will be revisited in subsequent meetings, with further details provided on the actual 2025 figures as they become available.