Iqaluit’s 2026 Budget Plans Surplus Without New Taxes

The City of Iqaluit is poised to present a balanced operating budget for 2026, featuring no increases in property taxes and a projected surplus of $2.3 million. Following a review by the finance committee on Tuesday night, finance director Peter Tumilty expressed satisfaction with the draft budget, which reflects expected revenues of $75.6 million against expenses of $73.3 million.

Both revenue and expense figures show a decrease from the previous year’s budget, which estimated revenues at $80 million and expenses at $77 million. Tumilty attributed part of this shift to the conclusion of the Inuit Child First Initiative food voucher program, which ended in March 2025. The city will no longer receive the $2.8 million in funding from Ottawa that supported this program, impacting overall spending.

As a result, community funding will see a significant reduction, decreasing from $5.3 million in 2025 to $2.5 million in 2026. The budget also reflects a decrease in salaries and benefits costs, attributed to a consistent rate of unfilled positions within the city, estimated at between 10 to 20 percent.

Budget Adjustments and Infrastructure Investments

To further manage costs, the 2026 budget incorporates a “five percent vacancy factor” to account for these unfilled positions. Despite the overall budget constraints, spending on water and sewer projects is set to increase significantly to $20.3 million, which is nearly $5 million more than the prior year. Tumilty noted this increase is necessary for upgrading the city’s water infrastructure and truck fleet.

The city is also projected to collect approximately $28.2 million in property tax revenue for 2026, a slight increase from 2025, driven by new property developments in the area. The finance committee unanimously endorsed the budget, which will now be submitted to the council for final approval.

Councillor Kyle Sheppard, chairperson of the finance committee, stated, “We’ve been able to operate pretty effectively so we can maintain a positive balance at the end of the day. I’m really happy to hold the line on property taxes and the rates for residents.”

The city’s capital budget, which outlines plans for purchasing equipment and funding infrastructure projects, totals $83.4 million for 2026 and received council approval in October 2025. The balanced approach in the budget reflects Iqaluit’s commitment to fiscal responsibility while addressing necessary community needs and infrastructure improvements.