The City of Winnipeg is set to increase borrowing and spending on capital projects in the upcoming year, allocating additional funds for key infrastructure initiatives such as enhancements to the North End Water Pollution Control Centre and the procurement of more buses.
The city’s capital budget for 2026 has expanded significantly, jumping from $677 million in the previous year to $1.19 billion in the recently unveiled draft budget, marking a substantial 76 percent surge.
A major portion of this increase is earmarked to cover one-third of the projected $1.5 billion required for the construction of a nutrient removal facility, which constitutes the final phase of the sewage treatment plant project. The 2026 budget allocates $547 million to this project, to be funded through debt.
Necessary upgrades at the North End plant are imperative due to its approaching capacity limit. Notable enhancements in Winnipeg Transit infrastructure are also on the cards, with spending more than doubling from $75 million to $137 million. A significant portion of this allocation is dedicated to the acquisition of new buses, amounting to $101 million as opposed to $42 million in the previous year.
Furthermore, the city plans to invest $21 million to kickstart the rehabilitation work on the twin overpasses spanning Lagimodiere Boulevard over Concordia Avenue, with the total project cost estimated at $39 million.
To mitigate costs associated with overtime and Workers Compensation Board claims linked to the Winnipeg Fire Paramedic Service, the city intends to establish a “resource pool” of firefighters who can fill in for absences. Initially starting with 10 full-time employees next year, this pool is projected to expand to 40 by 2029. Additionally, the city plans to introduce 11 new paramedic positions, with the total budget for the Winnipeg Fire Paramedic Service rising to $262 million, up by $8 million from $254 million in 2025.
Residents of Winnipeg can expect an overall 3.5% property tax increase in the upcoming year, attributed to funding road renewals, safety enhancements, and the general operating budget which has seen a 5.2% increase to $1.49 billion. This increase is lower than last year’s 5.95% surge, providing relief to homeowners. For instance, the owner of a home assessed at $371,000 will pay $75 more this year, resulting in an estimated additional revenue of $27 million annually for the city.
In a second-quarter financial update, the city projected a $17.7 million deficit by the end of the fiscal year, with factors such as lower-than-expected revenues in planning, property, and development, increased costs in overtime and workers’ compensation, reduced transfers from municipal accommodations, and unmet savings targets in the Winnipeg Police Service contributing to the deficit. However, the city anticipates utilizing its financial stabilization reserve to cover the forecasted deficit, leaving a surplus of $14.7 million.
The key highlights of the 2026 Winnipeg budget include a $1.49 billion operating budget, a $1.2 billion capital budget, a 3.5% property tax increase, and various adjustments to fees and services to meet the city’s financial goals.