A municipal budget outlines how the City delivers services, maintains infrastructure, and invests in the community over the coming year. It balances community priorities with available revenues such as taxes, fees, and grants. In Nelson, we know there are significant capital projects ahead—including the force main replacement and a new fire hall. Thoughtful budget planning helps meet residents’ needs today while preparing for the future.

Budget presentations have concluded, and Council has directed staff to prepare a draft budget that forecasts a 6.75% increase plus a 1% contribution to facilities reserves. With that in mind, the City is now offering opportunity for the public to review the presentations and slides, and send feedback, questions, and comments.

The engagement session will be open until February 28. The Finance team will then use public input to finalize a draft budget that will be presented to Council as a Request for Decision (RFD) on Tuesday, March 3.

The average assessed home in Nelson of $694,000 will see an increase of $171 on their 2026 property tax bill. This $171 increase is broken down into the following City Services:

Like many communities, the City is feeling the impact of rising costs. We’re working hard to keep taxes as manageable as possible while being thoughtful about how every dollar is spent. Each department took a close look at its budget to find savings, shift priorities where needed, and reduce non-essential expenses wherever possible.

We’re also looking beyond property taxes. Staff continue to pursue grants, partnerships, and other revenue opportunities, and to make better use of City assets wherever we can. The goal is simple: ease financial pressure while continuing to deliver the services our community relies on.

Our Asset Management planning shows that over the next 20 years, we’ll need to invest about $54 million in important community facilities, including the Nelson Public Library, Nelson Police Station, Nelson & District Youth Centre, and the Nelson Museum, Archives & Gallery and an additional $22 million for a new firehall. These are big numbers, but planning ahead helps us avoid more expensive repairs and unexpected disruptions in the future. It’s about steady, responsible upkeep so these spaces stay safe, welcoming, and ready to serve the community.

The 2026 budget addresses this by increasing funding for facilities from $1.3M to $2.1M immediately, and continues to add $100K a year to that for the next 10 years.

We talk a lot about inflation when it comes to the City's budget. The summary explanation of inflation is the rate at which prices for goods and services increase over time.

When we talk about inflation in everyday terms, we’re usually referring to the Consumer Price Index (CPI). CPI measures the average change in prices that households pay for things like groceries, gas, rent, clothing, and services.

If CPI increases by 3% in a year, it means that, on average, everyday consumer costs have gone up by 3%.

The Construction Price Index measures price changes specifically related to building and infrastructure projects.

Instead of groceries and rent, it tracks costs like:

• Building materials (steel, lumber, concrete)
• Labour
• Equipment
• Contractor services

CPI reflects the cost of living.
The Construction Price Index reflects the cost of building.

For municipalities like ours with multiple facilities costs ahead, construction inflation is an important measurement, since facility replacement and upgrades typically rise in cost faster than general consumer prices. As the chart above shows, the construction price index has been rapidly outpacing CPI since 2020, when global supply chains, material costs, and labour shortages impacted the industry.

Day 5: Friday, February 6, 2026

Watch the fifth and final day of budget presentations on the City's YouTube channel.

Day 4: Friday, January 30, 2026

Watch the fourth day of budget presentations on the City's YouTube channel.

Day 3: Friday, January 23, 2026

Watch the third day of budget presentations on the City of Nelson's YouTube channel.

Day 2: Friday, January 16, 2026

Watch the second day of budget presentations on the City of Nelson YouTube channel.

Day 1: Friday, January 9, 2026

Watch the first day of budget presentations on the City of Nelson YouTube channel.