Before the financial draft is adopted, the Municipality of North Cowichan will outline specific details in a public forum at municipal hall.
An earlier version of the budget showed a 10.62 per cent tax increase, but some council members said that was too high for residents already facing cost-of-living pressures. After reductions, council trimmed the increase by 2.2 percentage points to about 8.42 per cent, though significant cost drivers remain.
A preview of the budget shows a substantial allocation for staff wage increases ($1.6 million), long-term debt ($1.2 million), an increase of $615,000 for the RCMP contract and $400,000 for E-Comm 911, among other pressures.
Other cost drivers include $131,000 for the 2026 election and $106,000 for the Vancouver Island Regional Library.
According to the municipality, these factors account for much of the tax increase.
“If it weren’t for these uncontrollable costs, the increase would be 0.54 per cent.”
Other pressures on the budget include an expected loss of about $820,000 in tax revenue due to the Crofton mill closure, a gap that could grow to around $3 million in 2027.
To reduce the tax impact on residents, council identified approximately $920,000 in savings, including deferring a procurement review to next year ($50,000), not contributing to insurance ($50,000) and agricultural reserves ($30,000), cutting council travel expenses by 25 per cent, and funding some projects in Crofton and Chemainus through infrastructure reserves ($165,000). Council also plans to fund a live training centre from the unappropriated surplus ($100,000).
They will also apply $500,000 from the land sale reserve to lower borrowing costs and defer debt to mid-year.
A full presentation will be held Feb. 24 at municipal hall in North Cowichan at 5:30 p.m.
