North Bay city council approved a 3.95 per cent property tax increase for 2026 at a meeting Monday night, adopting a $179.4 million operating budget and an $82.7 million capital program.
The city says the budgets maintain core services and reinvest in municipal infrastructure while continuing funding for community services delivered by partner agencies, including policing and social services.
What the increase means for homeowners
The 3.95 per cent increase will raise property tax revenue to $118.6 million, an increase of $4.5 million compared with 2025. For the average North Bay homeowner, based on 2016 assessments and an average home value of $227,000, the increase equals about $9.92 per month, or $119 annually.
- Operating budget: $179.4 million
- Property tax revenue: $118.6 million, up $4.5 million from 2025
- Tax increase: 3.95 per cent (1.32 per cent for city operations, 2.63 per cent for external partners)
- Average home value used for tax calculations: $227,000 (2016 assessments)
- Average homeowner impact: ~$9.92 per month, $119 per year
How the increase was limited
Council reduced the net tax levy by drawing $3.6 million from the tax rate stabilization reserve. The city says it did not need to draw fully on reserves as planned last year and also received additional WSIB rebates, which improved its position for using reserves this year.
The availability of reserves played a key role in limiting the tax levy increase.
Deputy Mayor Maggie Horsfield
The 3.95 per cent figure breaks down to 1.32 per cent to fund city operations and 2.63 per cent to cover costs for external partners including the police service, the public health unit and the library.
Capital priorities and funding sources
The 2026 capital budget totals $82.7 million, with $59.6 million earmarked for general capital projects and $23.1 million for water and wastewater infrastructure. About 34 per cent of the capital program is expected to be funded through grants and third-party contributions.
- Funding for redevelopment of Cassellholme Home for the Aged
- Construction of a second watermain feeding the Ellendale Reservoir to reduce the risk of supply interruptions
- Asphalt resurfacing across the city
- Replacement of the Premier Road pumping station
- Realignment of the Laurentian Avenue intersection
- Additional improvements along Trout Lake Road
City officials say grant funding and third-party contributions will help reduce pressure on local taxpayers while addressing aging infrastructure and rising service demands.
This budget builds on previous years, reflects community priorities, balances rising costs, maintains essential services, and continues critical investment in the infrastructure our community relies on.
Mayor Peter Chirico
This budget reflects the realities facing municipalities across Ontario: increasing service demands, aging infrastructure, and limited revenue tools. Within these constraints, the city has taken a measured approach that balances immediate operational needs with long-term fiscal health.
Deputy Mayor Maggie Horsfield
Next steps and where to find details
Council adopted the budget as the final budget of this council's term. Officials congratulated Deputy Mayor Maggie Horsfield for her role as budget chair. The city says the operating and capital plans will be funded through a mix of taxes, grants, user fees and other revenues.
More detailed budget documents are available on the City of North Bay website for residents who want a complete breakdown of spending, reserve use and project timelines.