Nelson property owners are facing a 7.75 per cent tax increase this year.
City staff tabled the 2026-2030 five-year financial plan Tuesday, following a series of budget workshops held in council chambers through January and early February.
The plan proposes a 7.75 per cent increase for 2026, a nine per cent increase for 2027, a 7.5 per cent increase for both 2028 and 2029 and a 5.5 per cent increase for 2030.
Operational costs make up 6.75 per cent of the increase, with capital costs accounting for the remaining one per cent. For homes valued at about $694,000, the increase would amount to roughly $171 more annually.
Here is a breakdown of that $171 figure:
- General: 2.22 per cent ($49)
- Fire: 0.91 per cent ($20)
- Infrastructure: 1 per cent ($22)
- Police Board: 3.33 per cent ($73)
- Library Board: 0.29 per cent ($6)
Councillors debated whether the city should consider a larger increase now to address long-term infrastructure needs.
Councillor Rik Logtenberg argued that residents should be presented with a “jolt of reality” during public consultation.
“I don’t feel like people are grasping the scale of what needs to be done. And I think it’s also a very difficult thing to communicate to people unless it’s through, you know, some, a jolt of reality,” said Logtenberg.
“I think the public needs to understand if we don’t tackle this issue now or within the next, say, five years, it’s really going to get very, very expensive,” added Councillor Jesse Woodward.
But staff warned that even a higher tax increase would not fully resolve the city’s capital funding challenges.
“Adding that extra, say, $200,000 in this year, it still doesn’t address the $6 million funding gap that we’re dealing with,” said chief financial officer Chris Jury.
CAO Kevin Cormack added that the draft financial plan already relies on a combination of taxation, reserve contributions and potential asset sales.
“We would not have brought this forward if we did not think it was a workable plan,” said Cormack.
Council rejected a motion that would have directed staff to prepare a draft plan based on a 9.75 per cent increase. Councillors instead approved moving forward with the proposed 7.75 per cent figure for public consultation.
With the draft budget tabled, the city is seeking public feedback.
Comments will be accepted until March 28 through letstalk.nelson.ca.
Staff will return to council March 3 to present feedback and any proposed revisions. Council is scheduled to consider the first three readings of the financial plan bylaw March 17, with final adoption required by April 14.
Click here for more details on the plan, and to provide feedback.
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