Fredericton City Council has approved, in principle, the 2026 municipal capital budget, valued at $36,689,337. The 2026 budget is scheduled to be formally adopted by City Council in late November.
The proposed capital budget places a strong emphasis on infrastructure renewal and strategic investments that support a vibrant, livable community.
The capital budget is part of the city’s general fund, which is funded through property tax, user fees and grants from other levels of government. The general fund is split into two categories: capital and operating.
The 2026 capital budget includes four key categories:
- Renewal (77 per cent) - Focused on maintaining and improving existing assets such as roads, sidewalks, trails, police and fire equipment, and recreation facilities.
- New (eight per cent) – Dedicated to new projects including parks, lighting for sport courts, the River Access Initiative, enhancements to the public realm in Downtown and Main Street, and new operational equipment.
- Growth (eight per cent) – Supports the needs of a rapidly growing community by investing in new neighbourhoods and upgrading infrastructure to accommodate additional users.
- Non-tangible (seven per cent) – Allocated for planning and design work to ensure the city is forward-thinking and ready to leverage external funding as it becomes available.
The total proposed capital budget for 2026 also includes an additional $16,724,215 funded through contributions from other levels of government, one-time debt servicing, and new capital renewal funding provided through the Government of New Brunswick.
“The 2026 proposed capital budget reflects the city’s commitment to crafting a responsible and resident focused budget,” said Councillor Greg Ericson, Chair of the City’s Municipal Finance and Corporate Administration Committee. "By prioritizing infrastructure renewal and strategic growth, we’re investing in the services and spaces that matter most to residents, while still maintaining strong financial stewardship and preparing for the future.”
The city remains committed to responsible financial management, maintaining debt levels well below its self-imposed eight per cent threshold.
The Government of New Brunswick's one-year property assessment freeze for residential, non-residential, and industrial properties may delay some projects.
As directed by provincial legislation, the city’s water and sewer budget is self-funded through the rates it collects, which means that a separate revenue stream from that of the City of Fredericton’s general fund budget and property tax system is required. The proposed water and sewer budget for 2026 was passed on October 6.
More information about the city’s 2026 budget is available online.