The ‘Zero Means Zero’ budget was just passed, here’s what Downtown Van members need to know.

City Council has released the Proposed 2026 Budget, and the headline is clear: 0% property tax increase for the coming year. At a time when rising costs continue to impact Vancouver businesses, this budget is designed to maintain essential city services without adding pressure to commercial taxpayers.

1.No Property Tax Increase for 2026

Council directed staff to deliver a budget with a 0% property tax increase, and the City achieved it. This means business properties will not see a municipal property tax hike in 2026.

However, businesses should note that while property tax is frozen, other City charges are changing or are expected to change:
  • Utility fees (solid waste, water, sewer) are approved to increase by an average of 4.2% in 2026, mainly to fund replacement of aging infrastructure and cover Metro Vancouver water and sewer levies.
  • Recreation costs at Park Board community centres (admissions, passes, programs, permits) are confirmed to stay the same in 2026, with no fee increases.
  • The City’s proposed budget and related reports indicate that most business licence and permit fees are expected to rise by around 4.5%, and that NEU rates are expected to rise by about 3.2%, but the detailed 2026 fee schedules will be confirmed through the final by-law updates.

These increases are modest compared to prior years and are intended to keep service delivery sustainable.

2. Utility Fees Are Rising (But Much Less Than 2025)

The approved combined utility fee increase for 2026 is 4.2%, broken down as:

  • Water: +4.0%
  • Sewer: +5.5%
  • Solid Waste: +1.6%

For comparison, 2025 saw a much higher 18.2% utility increase, largely from Metro Vancouver levies. In 2026, the City notes that the 4.2% increase is due mainly to:

  • Investment in replacing aging underground infrastructure
  • Higher water and sewer levies from Metro Vancouver

This may affect operating costs for food services, hospitality, and high-volume water users.

3.Public Safety Gets a Significant Increase

Businesses consistently identify safety as a top concern. In the 2026 budget:

  • Police funding grows by 10%
  • Fire Rescue increases by 6%

Public safety now represents 31% of all City operating expenditures, the largest share of the budget. This includes funding for staffing, response capacity, and supporting frontline services.

4. Continued Investment in Streets, Public Spaces, and Infrastructure

The City’s capital plan continues major investment in infrastructure seen over recent years. Key projects affecting business districts include:

Street & Public Realm Improvements

  • Granville Bridge & Cambie Bridge seismic and safety work
  • Active transportation upgrades and complete streets initiatives

These investments can improve walkability, safety, and customer access—important for retail and tourism.

Water & Sewer Upgrades

The City continues significant sewer main renewal and water infrastructure replacement, which may result in periodic construction impacts in neighbourhoods.

5. Capital Spending Prioritizes Long-Term Growth

The 2026 Capital Expenditure Budget is $894 million, slightly higher than 2025. Major projects include:

  • Renewal of the Vancouver Aquatic Centre
  • Expansion of the PNE Amphitheatre
  • Marpole Library expansion
  • Ongoing renewal of City fleet, pump stations, and infrastructure

While not all projects occur downtown, strong citywide infrastructure investment reduces risks of service interruptions and supports Vancouver’s overall economic climate.

6. Efficiency Measures Will Shape City Services

To maintain services at 0% property tax increase, the City must find $120 million in new revenue and savings. This includes:

  • Increasing sponsorship and advertising
  • Streamlining administrative processes
  • Consolidating overlapping functions
  • Reviewing service levels to focus on frontline delivery

Businesses should expect the City to look for new revenue tools, which may influence future fee structures.

7. Surveyed Businesses Support Service Protection

In the City’s engagement survey:

  • 60% of businesses selected “high-quality City services & infrastructure” as their top priority.
  • A majority supported some property tax increase if needed to maintain service levels. Still, Council ultimately directed staff to produce the 0% increase budget with public safety and frontline service protection as priorities.
Check Back Soon

Regular updates will be made to this page as more details become available about the 2026 Budget.

Last updated: November 25, 2026