‘Staff will continue to focus on results’: proposed operating budget outlines cuts
The City of Vancouver is preparing to eliminate approximately 400 full-time positions as part of its plan to freeze property taxes in 2026, a move that is raising concerns among union leaders about the impact on public services and the city’s workforce.
According to city officials and union representatives, about two-thirds of the positions slated for elimination are unionized roles, with the remainder being exempt positions.
Local union leaders from CUPE locals 15, 391, and 1004 warned members in an email that the proposed 2026 budget could have “serious impact on workers” and “far-reaching consequences for public services throughout Vancouver’s communities and neighbourhoods.”
The city’s communications team described the upcoming budget as a “back to basics budget that involves trade-offs and organizational changes to maintain frontline services and advance key priorities.”
Vancouver city layoff seek $120 million in savings
CTV News reported that a statement from city staff said that to achieve the property tax freeze, they’ve been tasked with finding $120 million in savings or new revenues within a $2.39 billion operating budget.
Departments were instructed to prepare preliminary budgets with a 15 per cent reduction as a starting point for discussion.
“To succeed, the City will need to organize teams to optimize service delivery, review management structures and consolidate overlapping functions to increase efficiency. We will need to prioritize work and consider scaling back or discontinuing activities that don’t support front-line service delivery,” the proposed 2026 operating budged stated.
“Staff will continue to focus on results, ensuring that there is the right balance between planning and delivery and simplifying administrative processes. Staff will also continue to develop new revenue opportunities, including increasing sponsorship and advertising, optimizing the City’s investment portfolio and aligning program fees with rising costs.”
About one-third of the 400 jobs expected to be cut are currently vacant, but the city notes these estimates may change as the budget is finalized. Final decisions will be made by council at the end of November.
City manager outlines budget pressures
City manager Donny van Dyk acknowledged the economic challenges facing Vancouver, writing in the proposed budget that, “Across the country, families and businesses are feeling the impacts of rising costs and economic uncertainty. Here in Vancouver, Council has directed staff to bring forward a 2026 Budget with a 0% property tax increase while maintaining the services people count on most, including community grants, public safety, road and sidewalk maintenance, and community centre and library hours. This clear direction helps provide stability for our residents and businesses and clarity for our staff.”
Van Dyk added, “Our goal is to deliver on this direction. We will get there by finding efficiencies, reducing costs where we can, and finding new and creative ways to generate revenue.”
Frontline services and police funding
The proposed budget aims to maintain funding for frontline services, libraries, and community services, while police and fire departments will be fully funded in 2026.
Police services are set to receive a 10 per cent funding increase, bringing their budget to $525 million, while planning, urban design, and sustainability would see a 14 per cent reduction.
Union leaders expressed concern that the greatest impact will be on unionized workers and emphasized the uncertainty of the proposed cuts, stating, “At this stage, we don’t know exactly what these potential job cuts would look like or how they might be implemented.”
Opposition councillors have also voiced worries about the uneven distribution of cuts and the prioritization of police funding. Green Party councillor Pete Fry described the pending cuts as “chainsaw cuts,” adding, “there’s no systemic sort of measure to ensure that we’re doing this in a thoughtful, disciplined way.”
Utility fees, including solid waste, water and sewer, are proposed to increase by 4.2 per cent, largely due to investments in aging capital infrastructure and rising Metro Vancouver water and sewer levies.
Mayor defends property tax freeze
The final budget vote is scheduled for November 25.
Answering questions on Wednesday, Mayor Ken Sim defended the decision, citing affordability concerns, Business in Vancouver reported.
“What we're committed to is zero means zero. So let's be very clear, there's an affordability crisis going on in our city. There are a lot of people who are struggling to put meals on the table or make rent or make their mortgage payment. So it's the goal of our administration to make life a little more affordable for Vancouverites across the city.”
Sim added, “It's not going to be easy, but we're going to do the hard work where we provide a safe city with the core services that Vancouverites deserve in a fiscally responsible way, so Vancouverites can actually afford to be in our city.”
