The City of Fredericton’s 2026 budget maintains the property tax rate for most residents while enhancing services in priority areas including community safety, transit, infrastructure renewal and recreation for residents of all ages.
Fredericton City Council adopted the 2026 budget at its regular public meeting on November 24, 2025.
“This budget reflects City Council’s commitment to maintaining the high level of service residents expect and deserve, while investing in responsible growth for Fredericton’s future” said Councillor Greg Ericson, Chair of the Municipal Finance and Corporate Administration Committee. “By supporting existing programs while investing significantly in public safety, recreation and transit, we are building a city that works for everyone.”
The budget will protect the city’s strong financial position while strengthening crime prevention and enforcement through trail lighting, public safety cameras, and investments in the Community Safety Services Unit (CSSU), and the Community Engagement Unit (CEU). It funds street renewal projects, road safety enhancements, improved sidewalk maintenance, and flood resilience efforts. Plans also include outdoor sports court lighting, trail lighting, expansion of the River Access Initiative, Killarney Lake Park Plan implementation, park upgrades, and a new transit route.
The approved budget will maintain the current inside property tax rate at $1.3086 per $100 of assessment, despite inflationary pressures and the Government of New Brunswick’s one-year property assessment freeze for both residential and non-residential.
For approximately 10 per cent of households located where the outside / newly amalgamated rate applies, a five-cent increase per $100 of assessment will apply to align tax rates with the cost for service delivery more equitably for all residents.
This is consistent with the rate strategy adopted by Council in the 2024 budget. Additionally, the Fredericton Police Force will be taking over policing services in amalgamated areas starting on Dec. 2, 2025.
The 2026 budget was developed in three streams, each approved in principle during the fall before formal adoption:
- General Fund Budget:
- Total: $184.8 million
- Funding sources: property taxes, user fees, and grants
- Purpose: delivery of essential municipal services and day-to-day city operations
- General Capital Budget (included in General Fund):
- Total: $36.7 million
- Funding: $19.9 million from property taxes. The remaining balance is made up of funding from other levels of government and one-time debt servicing.
- Purpose: materials for projects and operational equipment
- Water and Sewer Budget:
- Total: $25.6 million
- Operations: $13.9 million
- Capital investments: $11.6 million
- Funding: self-funded through user fees (as required by provincial law)
- Purpose: maintaining and upgrading systems for clean drinking water and safe treatment of wastewater
- Total: $25.6 million
A total of $3.7 million in grants and contributions to community organizations was also approved, including $805,000 in Community Grants to support strategic partners, community initiatives, climate change action, and a new micro-grant program available for youth to lead projects that advance anti-racism, equity, and inclusion.
The budget does not include provisions for savings related to future projects due to the impact of the property tax assessment freeze.
Budget Highlights:
- Inside Property Tax Rate (approximately 90 per cent of households):
- No change from 2025, at $1.3086 per $100 of assessment
- Outside Property Tax Rate (Approximately 10 per cent of households):
- Increase by five cents from $1.1565 to $1.2065
- Saint Mary’s will increase from $0.6159 to $0.6659 per $100 of assessment.
- Douglas, Pepper Creek and Estey’s Bridge will increase from $0.7286 to $0.7786 per $100 of assessment.
- Lakeside Estates will increase from $0.6862 to $0.7362 per $100 of assessment.
- Lincoln will increase from $0.5042 to $0.5542 per $100 of assessment.
- NOTE: residential properties in the annexed areas will pay an additional tax rate of $0.4115 to the province for road maintenance.
Summary of Expenses by Program Area:
- Public Safety (e.g. Police, fire, by-law enforcement, emergency preparedness, animal registration and control etc.): $57 million
- Sustainable Infrastructure (e.g. Renewal / rebuild capital expenditures, new / extension capital expenditures, asset management etc.): $36 million
- Mobility (e.g. roads, sidewalks, trails and parking management and public transit): $24.1 million
- Livable Community (e.g. sport field management, park and playground management, horticulture, recreation and leisure programming, city beautification, community inclusion etc.): $21 million
- Economic Prosperity and Growth Planning (e.g. Land use planning, tourism, affordable housing, heritage conservation, development approval etc.): $10 million
- Environmental Stewardship (Arboriculture, composting, solid waste management, storm water management etc.): $7 million
- Governance & Civic Engagement (e.g. First Nation Relations, community leadership, intergovernmental affairs etc.): $6.2 million
More information about the city’s 2026 budget, including fee changes for the upcoming year, is available online.