City’s 2026 Utility Budgets and Capital Budget Approved

The City of Kenora’s 2026 utility budgets and capital budget were approved during a Regular Meeting of Council on Tuesday, December 16, 2025. Council met on December 5 and December 9 to review and amend the draft 2026 utility and capital budgets. Council and Administration held detailed discussions on the draft budgets identifying the needs and priorities of the City. 

Utility budgets

The utility budgets cover both solid waste & water/wastewater management and are separate from the City’s property tax supported budgets.

Solid waste & water/wastewater utilities are funded through user fees, such as water and sewer bills and Transfer Station/Landfill tipping fees, paid by those who use the services. If you do not use either utility, you do not pay as no property tax revenues are used to support these services.

Water and wastewater 

The water/wastewater utility treats and distributes safe drinking water, provides fire protection water, and collects and treats wastewater for both the City of Kenora and Wauzhushk Onigum Nation. 

The water/wastewater utility budget funds all aspects of treatment, distribution, collection, instrumentation, chemical, administration, and infrastructure costs associated with this level of service. 

Following a comprehensive review of the City’s water/wastewater systems and needs, an average 8.8% increase to water and wastewater rates and to water delivery rates will be applied in 2026. An average household consuming 11.5 cubic meters of water can expect an increase of $13.58 in 2026, depending on the amount of water used, on their monthly water bill. 

These rates are set to recover the full cost of operating to provide these critical services including support for maintenance, materials and supplies, wages, debt serving cost for capital, reserve contribution for emergencies, and capital investment. The utility covers the costs for operation through user fees and charges paid by customers who use the service.

Solid waste

The solid waste utility manages the City’s solid waste by processing garbage received through curb-side collection and at the Transfer Station or redirected to the Kenora Area Landfill. 

Residential solid waste management and recycling are provincially mandated. Garbage collection remains a municipal service, while recycling is being updated province-wide, effective in January 2026, shifting residential recycling to being fully funded by packaging and paper producers. GFL Environmental Inc. will manage Kenora’s curbside collection under the new framework, with the City continuing curbside collection under a subcontract. 

Effective, January 1, 2026, the cost of a bag tag will increase by $0.15 to $2.75 per bag, and a sheet of 10 bag tags is $27.50. Transfer Station fees will increase by 2.5% overall. 

• $23.70 for a load weighing up to 250 kg
• $142.00 per tonne for loads weighing over 250 kg
• $101.00 per tonne for materials redirected to the Kenora Area Landfill on Jones Road

Capital budget 

The capital budget includes several critical projects that improve our community. Planned Capital investment for 2026 is $6.168 million, with a five-year projected amount of $57.769 million.

Unlike the utility budgets, which is supported by user rates, the capital budget uses property tax levy, government funding, reserves and debt to fund the budget.

The adoption of the 2026 capital budget contributes only a 0.26% increase of the net tax levy, which is 0.9% less than the 2025 increase. Further discussion will occur in conjunction with the 2026 Municipal Operating budget on the net tax levy impact.

Capital budget highlights include:

• $4.4 million for Lakeview Drive, Winnipeg River East Bridge to Winnipeg River West Bridge
• $975,000 for upgrades to Lakeview Drive and Parsons Street Intersection
• $2 million for paving municipal and arterial roads, including sections of Sixth Street, Sixth Avenue, and Fourth Avenue
• $1.1 million for Fire Fleet Replacement pumper truck 

We acknowledge and thank City staff for their diligent efforts and collaborative partnership with Council in shaping a budget that preserves services and strengthens Kenora for the years ahead. By investing in key projects and infrastructure, the City can ensure is prepared for the community’s future needs.

Media contact

Ryan Marsh, Director of Finance, City of Kenora
rymarsh@kenora.ca