The City of Nelson has approved the first three readings of its five-year financial plan, which includes a 7.75 per cent municipal tax increase.
The 2026–2030 plan outlines the city’s projected revenues from 2026 through 2030, including both operating and capital budgets.
Council gave the plan its first three readings on Tuesday. CFO Chris Jury said the document reflects months of internal and public consultation, with meetings held between October 2025 and February 2026 to review financial performance, budget pressures, and departmental forecasts.
“We held 11 budget meetings from Oct. 2025 to Feb. 2026. This is sort of the second-to-last step in the whole process,” said Jury.
“It consolidates hydro, water, sewer, resource recovery, capital, and operating budgets all into one financial plan and reflects all the decisions we’ve made in those 11 meetings.”
The plan includes an overall taxation increase of $1.13 million, factoring in revenue growth from new property assessments.
For the average Nelson home, assessed at $694,000, the 7.75 per cent increase would see property taxes rise by $171 annually bringing the total to about $2,375 per year.
The increase is broken down as follows:
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City services: $70
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Infrastructure: $22
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Nelson Police Board: $73
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Nelson Library Board: $6
In January, council approved utility fee increases for 2026, including a $25 annual increase for resource recovery, a 5 per cent increase for water rates, and a 2.2 per cent hike for wastewater rates due to inflation.
An additional three per cent increase for water and wastewater will help fund capital projects.
Council also formally adopted an amendment Tuesday to the 2025–2029 financial plan to account for unanticipated expenses from last year. Staff said most of the changes relate to capital projects that were not completed in 2025 and have been carried forward into 2026, as well as revised cost estimates.
The amendment does not affect the proposed tax rate for 2026–2030.
The changes include:
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$100,000 in additional funding for capital construction at 85 Baker Street
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$110,000 to bring Geographic Information Services in-house, partially offset by a $45,000 grant
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$190,000 for emergency repairs to a sanitary force main
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$170,000 to purchase an asphalt recycler
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$65,000 for new fire radios
Under the Community Charter, municipalities must adopt a financial plan before setting annual tax rates. All proposed expenditures, funding sources, and transfers to or between funds must be included in the plan. Council is required to adopt the plan formally by May 15.
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