The City of Fredericton began work to build its budget for the upcoming year during its September 28 City Council meeting.
The City determines its annual budget through multiple meetings of City Council between September and November. Municipal budgets follow the calendar year, running from January to December.
This will be the first budget prepared by the current City Council, elected during the 2026 municipal elections. It is also the first budget cycle since the Government of New Brunswick introduced property tax reform measures in Spring 2026.
Provincial property tax reforms acknowledge the impact of inflation on municipalities while making tax bills more predictable and transparent for ratepayers.
“Developing the annual budget is City Council’s most important responsibility as it is how we are able to deliver essential services and programming that residents rely on while planning for the future of our community” said Councillor Colin Ebbett, Chair of the City’s Municipal Finance and Corporate Administration Committee. "As the impacts of provincial property tax reform continue to take shape, Council will work to balance the needs of a growing community with affordability for residents, while managing inflationary pressures.”
At each meeting, the relevant section of the budget will be approved in principle, meaning it is tentatively accepted, with the complete budget being formally adopted by City Council in November. The schedule is as follows:
- September 28 – Budget Kickoff
- October 5 – Water & Sewer
- October 19 – General Fund Capital
- November 2 – General Fund Operating (including Revenue)
- November 9 – Formal adoption at City Council
Much like a household budget, the city’s annual budget outlines how money is raised and spent. Most revenue comes from property taxes and is supplemented by other sources, such as user fees for parking, transit, and recreation, and contributions from other levels of government.
"Budget season brings some of the toughest and most important conversations around the council table. Every decision we make is about building a city that meets the needs of everyone who calls Fredericton home, today and for generations to come," added Ebbett.
Provincial legislation requires that municipalities in New Brunswick balance their budget every year. The city’s budget is divided into two types of expenses; the operating budget and capital budget.
The operating budget pays for the day-to-day expenses that keep the city running, such as waste collection, snow removal services, staff wages, and utility costs.
The capital budget pays for assets such as community infrastructure like roads, trails, parks, facilities, and vehicles.
Provincial legislation also requires that a municipality's water and sewer utility be self-funded through the rates it collects.
The Water & Sewer Fund is also divided into operating and capital expenses.
The operating budget covers day-to-day expenses such as staff wages, equipment, and fuel costs. The capital budget delivers investments to upgrade, extend and replace the infrastructure required to provide water and sewer services.
More information about the City of Fredericton budget process is available online.