The Municipality of Cumberland approved a $43.2-million operating budget and a $13.3-million capital budget at a special meeting on Monday, March 30, 2026.
It was the second consecutive year that the Municipality's operating and capital budgets have been brought forward for Council's consideration and final approval prior to the beginning of the fiscal year.
The Municipality’s commercial assessment values increased about 3.5 per cent and residential capped assessment grew by about 7.6 per cent. With the Property Valuation Services Corporation setting the assessment cap at 2.6 per cent, real residential assessment growth, or new assessment, was about 5 per cent. This growth produced about $1.9 million in additional tax revenue.
This additional revenue, along with an estimated $1 million in recoveries from the new extended producer responsibility (EPR) program provided the necessary funding for day-to-day operations and allowed for some significant transfers to reserves for future infrastructure and fire fighting apparatus.
Mandatory costs for policing, education, the PVSC and provincial roads increased by an estimated $850,000. Mandatory contributions to education and policing costs took the biggest chunk of that.
Salary and benefits costs rose due to inflation adjustments for staff and increased pension, benefits and WCB costs. A salary review recommended some adjustments. An allowance has been made in this budget for those adjustments.
The provision of fire protection is one of the Municipality’s significant cost drivers. The municipality supports 15 volunteer fire departments, operating over 90 individual trucks and pieces of equipment essential to the fire service.
In addition, the Municipality makes payments under agreement with three fire departments in Amherst, Oxford and Five Islands. The annual budget this year for the fire service is $3.3 million.
It is estimated that operating costs alone in the fire service will rise by about $300,000. A significant part of this is a $176,000 debenture payment for the new Springhill Fire Hall.
The Municipality is also estimating that costs related to solid waste management - collection, tip fees and transfer stations - will rise by about $180,000.
With over $700 million in municipal infrastructure and equipment, the capital budget is also a key piece of the annual budget. The capital budget for 2026-27 comes in at $13.3 million, with lion's share or just over $7.7 million, of that being spent on fire buildings, apparatus ( trucks ) and equipment.
An additional $3.5 million is earmarked for building upgrading, vehicles, equipment and infrastructure like sewage treatment plants.
Another $2.1 million, funded partially by the Canada Community Building Fund (gas tax), is set aside for capital paving. An additional $969,595 is being spent on paving and sidewalks this year in Springhill, funded partially by the Springhill Area Rate reserve and borrowing $650,000. The debt service on this borrowing will be funded from an existing annual surplus in Springhill Area Rate funds.
Overall, the capital budget is funded from operations, reserves, the Canada Community Building Fund and planned long-term debt of $4.8 million.
Despite rising costs and future cost pressures, the Municipality was able to keep the overall tax rates the same as the prior year. While maintaining the tax rate, the budget also increases contributions to capital reserves to address infrastructure renewal.
The general residential rate remains at $1.17 per $100 assessment and the commercial general rate remains at $2.74 per $100 assessment. Property owners in the former towns of Springhill and Parrsboro also pay area rates in addition to the general rate. The Springhill and Parrsboro area rate is $0.48 per $100 assessment for residential and $1.19 per $100 assessment for commercial properties.
The village rate for the Village of Pugwash increased by one cent per $100 of assessment.
The operating costs for our municipal sewer systems have been outpacing revenues for all three systems - Rural, Springhill and Parrsboro. A five per cent increase in sewer charges in all three systems is also recommended.
Speaking for council, Mayor Rod Gilroy said, “This budget reflects a balanced and responsible approach—maintaining stable tax rates while continuing to invest in the infrastructure and services our residents rely on every day. At the same time, we are strengthening our reserves to ensure we’re prepared for future challenges and long-term growth.”
To read the 2026-27 Operating and Capital Budget click here.