Northumberland County council is facing difficult decisions as it works toward limiting the 2026 tax levy increase to five per cent.
A recent report shows that, even after nearly eight million dollars in proposed adjustments and savings, the county still needs to cut more than two point four million dollars to hit its target. Without further changes, the levy is on track to rise by just over eight per cent.
One of the main pressures on the budget is the new Golden Plough Lodge, where debt repayments alone add more than four per cent to the levy. Council’s choice to shorten the loan term will save millions in interest over time but significantly raises yearly costs.
Options to reduce the impact include a one-time draw from reserves, deferring contributions to housing and infrastructure funds, or pushing back capital projects. Some councillors have also raised ideas such as reducing levels of discretionary services or exploring new revenue sources like fees or partnerships.
However, staff caution that temporary fixes, such as relying on reserves, only delay the problem since debt payments are ongoing. Deferring road work or infrastructure improvements could also create higher costs later due to inflation and deterioration.
Council has directed staff to return in September with a detailed report outlining possible service reductions, revenue-generating opportunities, and other strategies to narrow the gap. Until then, the county continues to wrestle with how to balance fiscal responsibility with community needs while working to keep the levy increase at five per cent.
(Written by: Joseph Goden)
