Property taxes in Halifax must rise to handle the municipality's growing population and ongoing projects, staff said Wednesday as the city began its budget season.

Financial staff told the budget committee that they expect a $1.3-billion operating budget and $318.8 million in capital spending for the 2025-26 fiscal year.

Nearly $70 million is needed to cover the gap in new spending compared to last year, and staff suggested raising the property tax rate by 2.7 per cent up to $0.791 per $100 of as…