Huron Kinloss council has its approved their 2010 budget, including an increase of just over 5.1 per cent in taxes this year.
That means on a home assesed at just over 210 thousand dollars, residents will see an increase of 120 dollars in taxes.
Mayor Mitch Twolan says one of the reasons for the increase is the drop in funding from the Ontario Municipal Partnership Fund.
Councilors originally wanted a zero increase in the tax rate this year, but that would mean a shortfall of almost 630 thousand dollars and a 15.63 per cent tax increase.
Treasurer Jodi MacArthur says council has since cut back on projects.
She says increasing taxes is the only way to supplement those cuts.
Highlights of the 4.2 million dollar budget include an addition to the Lucknow Sports Complex which is still in planning stages, and construction to the Lucknow Fire Hall which is underway.