The City of Kitchener has released its draft budget for 2026 and if passed, for the average homeowner, it would mean an additional $117 in property taxes and utility price increases.
Here is a breakdown of what is proposed in the draft budget document:
-
Property tax increase: 2.2 per cent ($29 annually for the average homeowner).
-
Water utility rate increase: 4.9 per cent ($24 annually).
-
Sanitary sewer utility rate increase: seven per cent ($45 annually).
-
Stormwater utility rate increase: 7.4 per cent ($19 annually).
Kitchener’s property tax hike is relatively modest when compared to other municipalities. Guelph is considering a 4.6 per cent hike, Cambridge has proposed 4.86 per cent and Woolwich Township is looking at a substantial 22 per cent increase.
“We know that affordability is top of mind for our residents,” Kitchener Mayor Berry Vrbanovic said in a press release about the draft budget.
“Our main focus is on delivering the lowest tax increase possible while continuing to deliver the programs and services that they rely on every day.”
In a briefing with members of the media on Friday morning, chief financial officer Jonathan Lautenbach said the smaller tax hike won’t impact city services.
“In terms of services, we want to maintain everything that Kitchener residents rely on because I think they value the service that we provide,” Lautenbach said.
Coun. Scott Davey, who also chairs council’s finance and corporate services committee, said he doesn’t feel like keeping the property tax rate increase low in 2026 will mean significant future spikes.
“We’ve built a culture of discipline and efficiency at the City of Kitchener,” Davey said.
The new budget also allocates:
-
$1.7 million for maintaining community trails.
-
$1.5 million for the creation of new neighbourhood parks.
-
$5 million to support local arts and culture facilities.
The budget will be presented to city council on Nov. 24. Residents will have till Nov. 26 to provide feedback. The final budget is expected to be passed on Dec. 1.
The City of Kitchener’s budget is different from the Region of Waterloo budget. The region is considering a nearly five per cent tax rate increase for 2026.