The City of Yellowknife has released a draft budget for 2026 with an estimated $149.4 million in expenses, $115.5 million in revenues, and seven-percent property tax increase.
That increase is not final. Residents can submit feedback until the end of the month and councillors may vote to make changes before the budget – and tax increase, if any – are finalized on December 8.
During a presentation to city council on Monday, Kavi Pandoo, Yellowknife’s director of corporate services, said municipal staff had focused on readiness and resilience in crafting this year’s draft budget.
He noted the city’s finances are under strain due to rising costs, a lack of available land, outdated technology and a stagnating tax base.
Among projected spending in the budget, Pandoo highlighted $150,000 related to the 2026 municipal election, $130,000 for increased security at the visitor centre and $390,000 for modernization initiatives.
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For capital projects, he said the budget includes $3.6 million in spending on a paving program and $1.9 million on traffic light upgrades.
The draft budget also includes some submissions recommended by members of the public and lists several others as needing more discussion.
On the revenue side, Pandoo said the city expects to receive $32.1 million from user fees and service charges and $33.8 million in grants and transfers from other levels of government.
He said that includes an additional $816,000 from the NWT government to support infrastructure and essential services due to changes to the territory’s community funding model.
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Pandoo told council the budget is “more than a set of numbers.”
“It is a blueprint of our shared priorities and our collective vision for the future of Yellowknife,” he said.
“It represents our commitment to maintaining the core essential services that make our city livable while strategically investing in the future growth and prosperity of our community.”
‘Difficult’ tax increase
The budget proposes $43.6 million in revenue from property taxes, a seven-percent increase compared to 2025.
“We understand that news of a property tax increase can be difficult, especially during times when many households are already facing financial pressures,” Pandoo said.
“We want to be transparent. The reality is that rising costs, ageing infrastructure and growing demand for public services have placed extraordinary pressure on our budget.”
In previous years, changes to the draft budget by council have had a significant impact on the final tax increase.
For 2025, as an example, councillors eventually approved a budget with a 6.019-percent tax increase – which then dropped to 5.86 percent due to an increase in the city’s assessment base – while the draft budget had proposed a tax increase of 8.05 percent.
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Unlike other levels of government, the city is required to pass a balanced budget every year.
Pandoo said Yellowknife’s draft budget proposes internal transfers and adjustments to account for the roughly $33.9-million gap between projected spending and revenues.
Residents can provide feedback on Yellowknife’s draft 2026 budget until November 30 by emailing city council.
They can also arrange to make a presentation to city council about the budget on November 24 by contacting the city – either by email or at 867-950-5602 – before noon on November 21.
City councillors are set to deliberate the draft budget from December 1 to 4 and approve a final budget on December 8.
