Halifax regional councillors have started work on the 2026–27 municipal budget, and Mayor Andy Fillmore says the priority has to be cost-cutting.

The city is working from what Fillmore called a “bare-bones” draft budget — a plan he directed staff to prepare earlier this year with only unavoidable increases such as inflation, existing contracts, and mandatory provincial payments. Even with those limits, the initial proposal includes $88.9 million in new spending, translating to an average property tax bill increase of about 10.5 per cent.

Fillmore noted that residents are also facing additional hikes outside the city’s control, including a 2.4 per cent rate increase proposed by Nova Scotia Power and a 36 per cent jump from Halifax Water.

 He said the combined impact is “simply too high,” and that council needs to make choices that reflect the financial strain households are under.

At Wednesday’s budget committee meeting, Fillmore introduced a new motion asking staff to find further reductions. The options include a 10 per cent cut to program grants, reducing the Climate Action Tax by one-third, and implementing a hiring freeze across the municipality. Councillors adopted the motion, and staff will return with more analysis in the coming months.

Fillmore said all areas of municipal spending need review, and that council’s focus should remain on delivering essential services while looking for responsible ways to lower the tax burden.

Budget discussions will continue through the winter before a final spending plan is approved next year.