The Town of Arborg is preparing for a year of increased spending, infrastructure investment and borrowing as council moves forward with its 2026 financial plan amid continued pressure from inflation and aging municipal infrastructure.
The proposed plan includes a municipal mill rate increase of 0.830 mills and total operational spending rising from $2.69 million in 2025 to $3.23 million in 2026 — an increase of more than $530,000 or 19.7 per cent.
At the same time, the town’s total portioned assessment increased only modestly, rising by about $238,000 from $67.26 million to $67.49 million.
“Council remained mindful of affordability throughout the budgeting process,” said Cindy Stansell, chief administrative officer for the Town of Arborg. “Municipalities continue to experience increased costs associated with fuel, utilities, insurance, equipment, materials and contracted services.”
She added the financial plan reflects council’s effort to balance “responsible financial management with the need to maintain and improve important municipal infrastructure and services for residents,” explaining Manitoba municipalities continue to operate within a reassessment cycle, with the most recent reassessment occurring in 2025. She said council worked to limit the impact on taxpayers while ensuring the town remains financially sustainable and able to address infrastructure needs into the future.
According to the financial plan presentation, residential properties continue to make up the majority of Arborg’s assessment base at just over 70 per cent, while commercial properties account for 26.5 per cent.
While taxation revenue is projected to increase by about $59,300 or 4.4 per cent, much of the town’s additional revenue in 2026 is expected to come from other sources, including grants, transfers and service-related revenues.
Property taxes account for about 44 per cent of municipal revenue in the 2026 budget, while other revenues make up 32 per cent, grants 17 per cent and reserve transfers seven per cent.
One of the most significant changes in the financial plan comes under recreation and cultural spending.
That category is projected to increase from roughly $329,000 in 2025 to more than $1.21 million in 2026.
Stansell said the increase is largely tied to the transition of the Arborg-Bifrost Parks and Recreation Commission into a department of the Town of Arborg under a new shared-services and joint governance model with the Municipality of Bifrost-Riverton.
Historically, recreation services were operated through a separate entity jointly funded by both municipalities. Recreation expenditures previously accounted for outside of the town’s financial plan are now incorporated directly into the 2026 budget.
“While this results in a noticeable increase in both revenues and expenditures within the financial plan, many of these costs are offset through recreation revenues and continued municipal cost-sharing contributions from the Municipality of Bifrost-Riverton,” Stansell said.
She added council believes the new structure will improve operational coordination, long-term planning, financial transparency and create opportunities for administrative and operational efficiencies moving forward.
Protective services spending is also increasing, with the town citing flood control costs and higher fire protection expenses as contributing factors. Transportation costs are also expected to rise due to fuel prices and increased repairs and maintenance.
Environmental health services, including garbage collection, are projected to increase as well.
The town is also planning several major capital projects in 2026, including sidewalk construction, a new electronic sign, recreation land purchases and upgrades to the arena ice plant.
Stansell said many of the projects relate directly to aging infrastructure that requires proactive investment to maintain “service reliability, operational efficiency, public safety and long-term sustainability.”
To help fund those projects, Arborg is proposing approximately $1.35 million in borrowing, including:
• $750,000 for water treatment plant filtration system upgrades,
• $400,000 for the arena ice plant,
• and $200,000 for recreation land purchases.
“In particular, the proposed upgrades to the water treatment plant filtration system are important to ensuring continued regulatory compliance, system reliability, and the long-term delivery of safe drinking water to residents and businesses,” Stansell said.
She added the arena ice plant replacement is considered a critical infrastructure priority to maintain year-round recreation programming and support tournaments, user groups and community events important to both community wellness and local economic activity.
Despite the planned borrowing, the town remains below its legislated debt limits.
The financial plan states Arborg’s maximum allowable municipal debt is approximately $4.72 million, while its current existing debt sits at about $729,583.
The town reports it still has nearly $4 million in remaining borrowing capacity.
Utility infrastructure is also expected to be a major focus in 2026.
The utility operating fund is projected to increase substantially due to water treatment and infrastructure projects. Total utility revenues and expenditures are both projected at more than $2.21 million compared to approximately $608,000 in 2025.
Among the largest planned utility projects are water treatment plant filtration design and upgrades valued at approximately $825,000.
Looking ahead, Arborg’s five-year capital expenditure plan outlines nearly $8.5 million in future infrastructure and capital projects between 2027 and 2031.
Major future projects identified in the plan include:
• $2 million in paving projects,
• a proposed $2.4-million recreation complex,
• multiple water main upgrades,
• lagoon repairs,
• lift station upgrades,
• and additional sidewalk construction.
“Like many municipalities across Manitoba, the Town of Arborg continues to rely heavily on provincial and federal grant opportunities to assist with major infrastructure projects,” Stansell said.
“Strategic long-term planning and asset management are becoming increasingly important as municipalities balance the costs of maintaining aging infrastructure while also positioning communities for future residential, recreational, and economic growth opportunities.”
Stansell said residents will continue to see investment in recreation facilities and programming, water infrastructure, sidewalks, equipment upgrades and planning toward the future outdoor sports complex project through the 2026 financial plan.
The Town of Arborg’s public hearing on the financial plan was intended to provide residents with an opportunity to ask questions, gather information and provide feedback before the budget is finalized.
