Multi-year budget: 2026 update

Winnipeg’s growing population is driving new demand for housing, roads, transit, and water/wastewater infrastructure. At the same time, evolving trade conditions – including new U.S. tariffs – make it critical that we invest in infrastructure that supports exports and economic opportunity.

No single project is more essential to Winnipeg’s long-term future than the new North End Water Pollution Control Centre (NEWPCC). Projects 1 and 2 are underway with support from the federal and provincial governments. Completing Project 3 is now urgent – both to meet environmental standards and to ensure Winnipeg can continue approving new homes and new business permits into the 2030s.

Rather than relying solely on cash financing, this budget funds one-third of NEWPCC-3 through long-term debt to keep water and sewer rates affordable for residents. This prudent approach protects affordability while maintaining progress on one of the most important infrastructure projects in our city’s history.

Updates to our debt policy will be needed later in 2026 to separate this rate-backed, long-term debt from other routine capital financing liabilities – an option that has already been raised informally with credit rating agencies.

It is also important to note that the utility transfer (“the dividend”) to general revenue built into City budgets is being reduced from 11% to 10% of revenues for 2026–27, to prioritize funding for this critical project.

Beyond NEWPCC, the six-year, $3.8-billion capital plan includes early design funding for the replacement of the Route 90 bridge and land acquisition for the Chief Peguis Trail extension. These trade-corridor investments are vital to Winnipeg’s continued economic growth and competitiveness.

Winnipeg’s growing population also means new challenges – and opportunities – for public safety and frontline services.

The 2025 Budget Update funded new police officers, firefighters, paramedics, and community safety personnel. The 2026 Update builds on that progress with:

• 18 additional police officer FTEs,
• 40 additional firefighter FTEs to strengthen scheduling flexibility, and
• 11 new paramedic FTEs supported by the Province for community health initiatives.

This budget also invests in services that support clean, safe neighbourhoods, like expanding the Neighbourhood Action Team by 17 FTEs. And extending late-night Transit service on 11 routes and in 10 on-request service areas will make it easier for Winnipeggers to get home safely late at night.

The proposed 3.5% property tax increase returns to the rate approved in the original 2024 Multi-Year Budget. Even with this adjustment, Winnipeg continues to maintain the lowest municipal property taxes and collect the lowest per capita revenue of any major Canadian city.

Winnipeg’s Financial Stabilization Reserve, like those of many cities, was significantly drawn down during the COVID-19 pandemic to maintain essential services without major tax increases. Unlike most other major Canadian cities, Winnipeg did not receive large one-time transfers or transit funding top-ups from other governments to offset those impacts.

Despite those challenges, the City has maintained responsible financial management and will continue to rebuild its reserve gradually. Transparent reporting and proactive risk management remain central to that effort.

To strengthen our financial performance, the City is launching a new Continuous Improvement Unit, bringing together employees trained in Lean Six Sigma to lead efficiency projects across departments. Their work will focus on reducing waste, streamlining processes, and improving customer service – all while ensuring the best possible value for taxpayers.

With new Chief Administrative Officer Joseph Dunford and Chief Financial Officer Tracy Graham guiding the organization, and with ongoing collaboration across governments, Winnipeg is moving forward with confidence – investing in what matters most, while protecting affordability for residents.

Yours sincerely,

Scott Gillingham
Mayor
City of Winnipeg

Jeff Browaty
Councillor, North Kildonan
Chair, Standing Policy Committee on Finance and Economic Development