Lunenburg council approves budget with first tax increase since 2021

Property owners in Lunenburg will pay higher municipal tax rates after council approved its 2026-27 operating budget Tuesday night.

Council approved a budget of $12,054,200, selecting what staff identified as Option E in budget discussions.

The new residential tax rate will be $1.455 per $100 of assessment, an increase of 7.9 cents. The commercial tax rate will rise to $3.479 per $100 of assessment, up 12.1 cents.

For a home assessed at $300,000, the residential increase works out to about $237 more per year.

The town says this is the first tax rate increase since the 2021-22 budget.

Council said the budget is designed to maintain current service levels while responding to higher costs across municipal services and day-to-day operations.

The budget also includes a $135,000 contribution to reserves for future infrastructure work.

Town officials say that money can help cover projects such as roads, sidewalks or major facility upgrades, while reducing the need for larger future tax increases or borrowing.

Municipal budgets are generally split between operating costs, which cover yearly services, and capital spending, which focuses on longer-term infrastructure and major improvements.