Questions · 8 so far
We read Cobourg's financial reports and meeting minutes, and compared its numbers with 63 similar Ontario towns. These are the things that stood out.
These are unusual enough that residents deserve a clear answer from council.
$8.7Min savings at the end of 2023
Towns keep savings (called reserves) to pay for new trucks, roof repairs and surprises. Cobourg had $8.7M saved at the end of 2023, down from $9.4M in 2019. That is 17% of one year's spending. None of the 63 similar towns had less, compared with what they spend.
Found automatically from the town's financial reports · 2 sources
There may well be a good reason. It is still worth asking what it is.
May 27, 2026date of the auditor's report on the Town's statements for the year ended December 31, 2023
Audited financial statements are the Town's yearly report card, checked by an outside accountant. The Town's financial statements page lists its own statements for 2017 to 2023. The newest, for the year that ended December 31, 2023, has an auditor's report dated May 27, 2026, more than two years after the year ended. The 2022 statements were signed on September 11, 2023. We did not find the Town's own statements for 2024 or 2025 on that page. The page also lists separate statements for Town of Cobourg Holdings Inc., the company that runs the Town's electricity business and is 99.9% owned by the Town. Those are not the Town's own. The 2023 statements also correct 2022: a note says the Town found grants from earlier years that should have been counted as revenue when approved, and that raised its 2022 balances. The auditor's opinion on 2023 is clean ("present fairly").
Found by reading the town's own documents · 4 sources
$11,603,189unfinanced capital at December 31, 2023, up from $9,975,260
"Unfinanced capital" means the Town spent on projects without money set aside to pay for them, so the bill sits in its accounts until it is covered. The 2023 statements show it at $11,603,189, up from $9,975,260 a year earlier (a rise of $1,627,929, worked out by us). The Town's own finance review says the balance goes back to at least 2012 and that the auditors have flagged it since the 2017 statements. It calls it "not acceptable nor a fiscally responsible long-term practice", says it is equal to a one-year 32% rise in the tax rate, and says tax levy money will be needed over time to fix it. In the same 2023 statements, the day-to-day (operations) fund is $5,055,122 in deficit, against $822,006 the year before. The 2026 budget book shows the capital levy line going from $661,034 to nothing.
Found by reading the town's own documents · 4 sources
$22,095,177restricted (obligatory) reserve funds at December 31, 2023, up from $11,924,088 a year earlier
Development charges are fees on new buildings that the law says must be spent on the growth they cause. Gas tax money and similar grants are also restricted. The Town's finance review, posted in redacted form from a closed meeting on November 26, 2024, says these funds were tracked in the general ledger like ordinary reserves, with no separate bank accounts, and that at December 31, 2022 "Operating Cash Overdrawn" was ($8,305,627). It says an overdrawn balance points to restricted money having been used for general operating purposes. It also says the last yearly development charge report was done in December 2020 for 2019, that $6.3 million of charges should have been used to fund spending, and it recommends separate bank accounts from January 1, 2025. The 2023 statements show restricted funds more than doubling, from $11,924,088 to $22,095,177, with development charges at $15,372,209.
Found by reading the town's own documents · 4 sources
$8,851,0862026 net police budget, against $7,843,279 in 2025 and a 2025 projected cost of $9,020,557
Police are the Town's largest single budget line. The 2026 budget book shows "Police - Net Operating" at $8,851,086, up 12.85% from $7,843,279 in 2025. The Mayor's December 8, 2025 draft release described a police levy increase of 6.31%. The Town's December 23, 2025 release says Council cut the planned use of police reserves from $1,113,000 to $600,000, and the police budget shows four reserve lines. The police budget also shows the actual cost in 2024 was $9,756,106 and the 2025 projection is $9,020,557, both above the 2025 budget of $7,843,279. Last year's budget book forecast the 2026 police cost at $7,843,279, no change. The police sheet's own 2027 forecast total ($9,952,130) also differs from the budget summary's ($9,205,129).
Found by reading the town's own documents · 6 sources
$4,350,000debenture listed in the 2026 capital budget, for the Midtown Creek Culvert Realignment
The Town's December 23, 2025 release says 2026 is the first year it has not used the tax levy for capital projects and that all capital projects are "fully funded through existing reserves". The 2026 capital budget is $11,273,870. Its funding table shows a tax levy of $0, but also a Debenture (a long-term loan) of $4,350,000, all for one project, the Midtown Creek Culvert Realignment ($4,700,000, with $350,000 from a developer). At the end of 2023 the Town's total long-term debt was $3,150,508. The operating budget's long-term debt line stays at $276,036 in 2026, 2027 and 2028. The Town's finance review also says capital budgets have listed debentures that were not actually issued.
Found by reading the town's own documents · 6 sources
8.14%forecast rise in the municipal levy for 2027, after 2.74% in 2026
The levy is the part of the tax bill that pays for the Town's own services. The 2026 budget book shows a Total for Municipal Levy of $33,875,596 (up 2.74%) and a 2027 forecast of $36,632,394 (up 8.14%). It notes that the 2027 and 2028 forecasts have not been reviewed or approved by Council. Part of the jump is visible in the book. General Government rises 21.42% in the forecast. The operating budget counts on a $750,000 draw from the Northam Industrial Park (the Town's industrial property), and that draw is $250,000 in 2027 and nothing in 2028. Last year's budget book forecast 3.40% for 2026, and the final figure was 2.74%.
Found by reading the town's own documents · 4 sources
$92,6942025 projected legal fees in the Finance budget, against a budget of $520
The 2026 budget book shows the Finance department's "Legal Fees" line at $2,831 in 2023, $15,384 in 2024 and a 2025 projection of $92,694, against a budget of $520 in both 2025 and 2026. A separate corporate line also shows legal fees of $129,058 in 2023, $145,363 in 2024 and a 2025 projection of $56,200, against a budget of $150,000. A third line for Integrity Commissioner legal fees went from $10,603 to $20,085 to a projection of $35,778, against a budget of $25,000. The Town's first-quarter 2026 report says legal costs for all of 2025 were "approximately $126,000" and that legal costs "are not always incurred evenly". We could not tell from the documents what the legal work was.
Found by reading the town's own documents · 3 sources
$8.7Min savings at the end of 2023
Towns keep savings (called reserves) to pay for new trucks, roof repairs and surprises. Cobourg had $8.7M saved at the end of 2023, down from $9.4M in 2019. That is 17% of one year's spending. None of the 63 similar towns had less, compared with what they spend.
| Year | Savings (reserves) |
|---|---|
| 2019 | $9.4M |
| 2020 | $10.4M |
| 2021 | $11.7M |
| 2022 | $11.6M |
| 2023 | $8.7M |
With little saved, a broken bridge or a storm has to be paid for with a sudden tax increase or a loan. Low savings can also mean past budgets were balanced by spending savings instead of facing the real cost.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
Savings (reserves and reserve funds): 2019 $9.4M, 2020 $10.4M, 2021 $11.7M, 2022 $11.6M, 2023 $8.7M.
Ontario Financial Information Return (FIR), 2019 to 2023 · Schedule 70, line 6420 · archived copy
Typical among similar towns: savings equal to 99% of a year's spending. Cobourg: 17%.
Ontario Financial Information Return (FIR), 2023, 63 similar municipalities · Schedules 40 and 70 · archived copy
May 27, 2026date of the auditor's report on the Town's statements for the year ended December 31, 2023
Audited financial statements are the Town's yearly report card, checked by an outside accountant. The Town's financial statements page lists its own statements for 2017 to 2023. The newest, for the year that ended December 31, 2023, has an auditor's report dated May 27, 2026, more than two years after the year ended. The 2022 statements were signed on September 11, 2023. We did not find the Town's own statements for 2024 or 2025 on that page. The page also lists separate statements for Town of Cobourg Holdings Inc., the company that runs the Town's electricity business and is 99.9% owned by the Town. Those are not the Town's own. The 2023 statements also correct 2022: a note says the Town found grants from earlier years that should have been counted as revenue when approved, and that raised its 2022 balances. The auditor's opinion on 2023 is clean ("present fairly").
Residents, lenders and the Province rely on audited statements to know what the Town owns and owes. Statements that arrive two or more years late mean budgets for 2025 and 2026 were set without a current audited picture.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
Independent Auditor's Report on the Town's consolidated statements for the year ended December 31, 2023: dated "May 27, 2026". The opinion says the statements "present fairly". An Emphasis of Matter draws attention to Note 19 and Note 20, which explain that comparative information for 2022 has been restated.
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2023 (KPMG LLP) · Independent Auditor's Report, PDF pages 4 to 6
Note 20, Restatement of comparative information. At January 1, 2022 the table shows Capital assets 200,757,315, adjustment 2,927,184, as adjusted 203,684,499, and accumulated surplus before 215,526,828. The note says management found transfers in earlier years that should have been counted as revenue when authorized.
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2023 (KPMG LLP) · Note 20, PDF page 40
The Independent Auditor's Report on the Town's statements for the year ended December 31, 2022 is dated "September 11, 2023".
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2022 (KPMG LLP) · Independent Auditor's Report, PDF pages 4 and 6
The Town's page lists "2023 Town of Cobourg Financial Statements" as the newest, then 2022, 2021, 2020, 2019, 2018 and 2017, and separately 2017 to 2024 statements for Town of Cobourg Holdings Inc. We read the page on October 5, 2026.
Town of Cobourg website: Financial Statements page · list of links on the page
$11,603,189unfinanced capital at December 31, 2023, up from $9,975,260
"Unfinanced capital" means the Town spent on projects without money set aside to pay for them, so the bill sits in its accounts until it is covered. The 2023 statements show it at $11,603,189, up from $9,975,260 a year earlier (a rise of $1,627,929, worked out by us). The Town's own finance review says the balance goes back to at least 2012 and that the auditors have flagged it since the 2017 statements. It calls it "not acceptable nor a fiscally responsible long-term practice", says it is equal to a one-year 32% rise in the tax rate, and says tax levy money will be needed over time to fix it. In the same 2023 statements, the day-to-day (operations) fund is $5,055,122 in deficit, against $822,006 the year before. The 2026 budget book shows the capital levy line going from $661,034 to nothing.
Unfinanced capital is a debt in all but name: it has to be paid by taxes, reserves or borrowing later. The Town has said so itself. Residents should be able to see how big it is now and the plan to pay it down.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
The records that would answer this can be requested: Plan to pay down unfinanced capital, with wording you can copy.
Note 10, Accumulated surplus: "Unfinanced capital" (11,603,189) in 2023 and (9,975,260) in 2022. "Operations" $ (5,055,122) in 2023 and $ (822,006) in 2022.
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2023 (KPMG LLP) · Note 10, PDF page 28
The Town's finance review lists unfinanced capital reported on the statements, including 2012 $16,088,969, 2017 $13,169,012 and 2022 $9,975,260. It says unfinanced capital "has been included in audit findings starting for the year ended December 31, 2017".
Financial update, November 26, 2024 closed meeting (redacted) · section 2.0, PDF pages 7 and 8 (the report's title page, PDF page 1, is an image and was not used)
"Unfinanced capital is not acceptable nor a fiscally responsible long-term practice." The review says the $9,975,260 "is the equivalent of a one year 32% increase in the tax rate" and that "New tax levy funding will be required to reduce the unfinanced capital".
Financial update, November 26, 2024 closed meeting (redacted) · section 2.0, PDF pages 7 and 9
2026 operating budget summary: "Capital levy" 661,034 for the 2025 budget and 0 for 2026 (a change of (100.00%)).
Town of Cobourg 2026 Budget, Operating Costs · Operating Budget Summary, PDF page 2
$22,095,177restricted (obligatory) reserve funds at December 31, 2023, up from $11,924,088 a year earlier
Development charges are fees on new buildings that the law says must be spent on the growth they cause. Gas tax money and similar grants are also restricted. The Town's finance review, posted in redacted form from a closed meeting on November 26, 2024, says these funds were tracked in the general ledger like ordinary reserves, with no separate bank accounts, and that at December 31, 2022 "Operating Cash Overdrawn" was ($8,305,627). It says an overdrawn balance points to restricted money having been used for general operating purposes. It also says the last yearly development charge report was done in December 2020 for 2019, that $6.3 million of charges should have been used to fund spending, and it recommends separate bank accounts from January 1, 2025. The 2023 statements show restricted funds more than doubling, from $11,924,088 to $22,095,177, with development charges at $15,372,209.
The law limits what these funds may be used for. If they were used for other things, the Town owes the fund back, and residents who paid the charges expect the growth projects to be built. A doubling in one year makes it important that the money sits where it should.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
The records that would answer this can be requested: Development charge reserve fund reports, 2020 to 2024, with wording you can copy.
The review says that at the 2016 background study $4.1million of development charges should have been used to fund spending, and that by the 2021 study the total was "$6.3 million dollars". It says overdrawn cash is an indication that development charges have been used for general operating purposes.
Financial update, November 26, 2024 closed meeting (redacted) · section 5.0 (b), (c) and (e), PDF page 12
Table of bank balances at December 31, 2022 less restricted reserve balances ends with "Operating Cash Overdrawn" ($8,305,627). The review adds that the last development charge reconciliation located was for 2020, and "The last report was done in December 2020 for 2019. There are no reports for 2020, 2021 or 2022."
Financial update, November 26, 2024 closed meeting (redacted) · section 5.0, PDF page 13
Recommended changes: "Create new bank accounts for obligatory reserve funds and implementation as of January 1, 2025" and complete development charge reporting for 2020, 2021, 2022 and 2023 and report to Council.
Financial update, November 26, 2024 closed meeting (redacted) · section 5.0, PDF pages 14 and 15
Note 7, Deferred revenue, obligatory reserve funds: balance at end of year $ 22,095,177 (2022 $ 11,924,088). Development contributions 7,865,824 received in 2023. Of the balance, Development charges $ 15,372,209 (2022 $ 8,154,296).
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2023 (KPMG LLP) · Note 7, PDF page 22
$8,851,0862026 net police budget, against $7,843,279 in 2025 and a 2025 projected cost of $9,020,557
Police are the Town's largest single budget line. The 2026 budget book shows "Police - Net Operating" at $8,851,086, up 12.85% from $7,843,279 in 2025. The Mayor's December 8, 2025 draft release described a police levy increase of 6.31%. The Town's December 23, 2025 release says Council cut the planned use of police reserves from $1,113,000 to $600,000, and the police budget shows four reserve lines. The police budget also shows the actual cost in 2024 was $9,756,106 and the 2025 projection is $9,020,557, both above the 2025 budget of $7,843,279. Last year's budget book forecast the 2026 police cost at $7,843,279, no change. The police sheet's own 2027 forecast total ($9,952,130) also differs from the budget summary's ($9,205,129).
Policing is a large part of the tax bill, and the headline percentage depends on what is counted. If the budget has been set below what policing actually costs, the gap is paid from reserves or in later years' taxes.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
Total of the police budget: 2024 Actual 9,756,106; 2025 Projection 9,020,557; 2026 Budget 8,851,086; 2025 Budget 7,843,279; increase 1,007,807 or 12.85%; 2027 forecast 9,952,130.
Town of Cobourg 2026 Budget, Cobourg Police Services operating budget · Cobourg Police Services summary table, PDF page 1
Reserve lines in the police budget: Reserve - Police Communications (#64092) (64,982); Reserve - Police Service Labour Relations (#64098) (41,290); Reserve - Police Future Investment Reserve (#64032) (370,409); Reserve - Police Operating Emergency Reserve (#64033) (123,320).
Town of Cobourg 2026 Budget, Cobourg Police Services operating budget · police operating expense table, PDF page 2
Budget summary: "Police - Net Operating" 7,843,279 (2025 Budget), 8,851,086 (2026 Budget, 12.85%), 9,205,129 (2027 Forecast, 4.00%).
Town of Cobourg 2026 Budget, Operating Costs · Operating Budget Summary, PDF page 1
Last year's budget book: "Police - Net Operating" 7,434,384 (2024 Budget), 7,843,279 (2025 Budget) and 7,843,279 for the 2026 forecast, 0.00%.
Town of Cobourg 2025 Budget, Operating Costs · Operating Budget Summary, PDF page 2
The Mayor's draft budget release says the budget includes a "Cobourg Police Services levy increase: 6.31%".
Mayor Cleveland Presents First Mayor's Budget (news release, December 8, 2025) · section on the 2026 levy
Council's amendments table: "Police Reserve Utilization", Mayor's Budget $1,113,000, Council's Amendments $600,000. The release says Council approved additional funding above the mandate for both the Police and Library.
Town of Cobourg Approves 2026 Capital and Operating Budget (news release, December 23, 2025) · Budget Process, amendments table
$4,350,000debenture listed in the 2026 capital budget, for the Midtown Creek Culvert Realignment
The Town's December 23, 2025 release says 2026 is the first year it has not used the tax levy for capital projects and that all capital projects are "fully funded through existing reserves". The 2026 capital budget is $11,273,870. Its funding table shows a tax levy of $0, but also a Debenture (a long-term loan) of $4,350,000, all for one project, the Midtown Creek Culvert Realignment ($4,700,000, with $350,000 from a developer). At the end of 2023 the Town's total long-term debt was $3,150,508. The operating budget's long-term debt line stays at $276,036 in 2026, 2027 and 2028. The Town's finance review also says capital budgets have listed debentures that were not actually issued.
A new loan of this size would be more than double the Town's long-term debt at the end of 2023 (worked out by us: $3,150,508 plus $4,350,000) and would be repaid by taxpayers for years. A description that says reserves cover everything, and a debt line that does not move, make it hard for residents to see what the plan is.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
The release says: "All capital initiatives are fully funded through existing reserves" and describes the 2026 Capital Budget as $11,273,870.
Town of Cobourg Approves 2026 Capital and Operating Budget (news release, December 23, 2025) · Capital Projects Fully Funded Through Reserves
Funding table: Costs $11,273,870; "Debenture" ($4,350,000); "Developer Contributions" ($350,000); "Tax Levy" $0.
Town of Cobourg 2026 Capital Budget · 2026 Capital Budget funding summary, PDF page 1
Pre-submission form, Midtown Creek Culvert Realignment: total project cost $4,700,000; Other: Debenture ($4,350,000); Other Developer Contribution ($350,000). Construction anticipated in 2026.
Town of Cobourg 2026 Capital Budget · Capital Budget - Projects form, PDF page 21
Operating budget summary: "Long-term Debt" 276,036 in the 2025 Budget, 2026 Budget, 2027 Forecast and 2028 Forecast.
Town of Cobourg 2026 Budget, Operating Costs · Operating Budget Summary, PDF page 2
Note 9: total long-term liabilities incurred by the Town and outstanding at the end of the year $ 3,150,508 (2022 $ 3,710,331).
The Corporation of the Town of Cobourg, Consolidated Financial Statements, December 31, 2023 (KPMG LLP) · Note 9(a), PDF page 26
The finance review says: "Debenture debt is not actually issued contrary to being used to fund capital projects", and recommends including debt financing in budgets only if debt will actually be incurred.
Financial update, November 26, 2024 closed meeting (redacted) · section 1.0, PDF pages 5 and 7
8.14%forecast rise in the municipal levy for 2027, after 2.74% in 2026
The levy is the part of the tax bill that pays for the Town's own services. The 2026 budget book shows a Total for Municipal Levy of $33,875,596 (up 2.74%) and a 2027 forecast of $36,632,394 (up 8.14%). It notes that the 2027 and 2028 forecasts have not been reviewed or approved by Council. Part of the jump is visible in the book. General Government rises 21.42% in the forecast. The operating budget counts on a $750,000 draw from the Northam Industrial Park (the Town's industrial property), and that draw is $250,000 in 2027 and nothing in 2028. Last year's budget book forecast 3.40% for 2026, and the final figure was 2.74%.
A low increase in 2026 followed by a large forecast increase in 2027 asks residents to plan for a rise the budget does not yet explain.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
Budget summary: "Total for Municipal Levy" 32,971,349 (2025, 6.55%); 33,875,596 (2026, 2.74%); 36,632,394 (2027 Forecast, 8.14%); 37,749,533 (2028 Forecast, 3.05%). "Readers are cautioned that the 2027 and 2028 forecast have not been reviewed or approved by Council at this time."
Town of Cobourg 2026 Budget, Operating Costs · Operating Budget Summary, PDF page 1
General Government: 5,103,845 (2025 Budget); 5,667,169 (2026 Budget, 11.04%); 6,881,015 (2027 Forecast, 21.42%); 6,674,801 (2028 Forecast).
Town of Cobourg 2026 Budget, Operating Costs · Operating Budget Summary by function, PDF page 2
Financial budget: "Northam Draw" (750,000) in each of 2023, 2024 and 2025, (750,000) for the 2026 Budget, (250,000) for the 2027 Forecast and 0 for 2028.
Town of Cobourg 2026 Budget, Operating Costs · Financial, PDF page 15
Last year's budget summary: "Total for Municipal Levy" 32,971,349 (2025 Budget) and 34,092,797 (2026 Forecast, 3.40%).
Town of Cobourg 2025 Budget, Operating Costs · Operating Budget Summary, PDF page 2
$92,6942025 projected legal fees in the Finance budget, against a budget of $520
The 2026 budget book shows the Finance department's "Legal Fees" line at $2,831 in 2023, $15,384 in 2024 and a 2025 projection of $92,694, against a budget of $520 in both 2025 and 2026. A separate corporate line also shows legal fees of $129,058 in 2023, $145,363 in 2024 and a 2025 projection of $56,200, against a budget of $150,000. A third line for Integrity Commissioner legal fees went from $10,603 to $20,085 to a projection of $35,778, against a budget of $25,000. The Town's first-quarter 2026 report says legal costs for all of 2025 were "approximately $126,000" and that legal costs "are not always incurred evenly". We could not tell from the documents what the legal work was.
Legal fees are easy to under-budget and hard for residents to follow. A line budgeted at $520 that runs near $93,000 means the budget did not show the real cost. It is also hard to compare the projections with the Town's own $126,000 total.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for Cobourg? Send us your answer and we will publish it with this question.
The records that would answer this can be requested: Legal fees paid in 2025, by department, with wording you can copy.
Finance: "Legal Fees" 2,831 (2023 Actual), 15,384 (2024 Actual), 92,694 (2025 Projection), 520 (2026 Budget), 520 (2025 Budget).
Town of Cobourg 2026 Budget, Operating Costs · Finance expense table, PDF page 12
Financial: "Legal Fees" 129,058 (2023), 145,363 (2024), 56,200 (2025 Projection), 150,000 (2026 and 2025 budgets). "Legal Fees - Integrity Commissioner" 10,603 (2023), 20,085 (2024), 35,778 (2025 Projection), 25,000 (2026 and 2025 budgets).
Town of Cobourg 2026 Budget, Operating Costs · Financial expense table, PDF page 15
In the Financial department: "legal costs recorded as of March 31, 2025 were $7,390, while total legal expenditures for the full 2025 fiscal year were approximately $126,000." The report says legal fees "can fluctuate significantly" and "are not always incurred evenly from quarter to quarter".
Budget Performance Statement, January to March 2026 · Financial, PDF page 5