Population explosion in Waterloo Region creates budget turmoil

Waterloo Region says the area’s population explosion will force tough decisions ahead as it sets its budget for next year.

“We grew by a community the size of Stratford last year alone,” stated Coun. Michael Harris, who is in charge of the budget committee. “We’ve made significant commitments to the community to expand the services they rely on – in housing, paramedic services, transit – and those come at a cost. A

“Affordability is a huge concern as we help more people with a place to live, the ability to get to work, and to provide vital medical and social services.”

Statistics Canada numbers show that Waterloo’s population was estimated to be 665,188 people as of July 1, 2023. The area added 38,519 people in just a year. A large portion of the population growth was due to immigration.

It remains to be seen how the federal government’s move to curtail the number of foreign students attending Conestoga College in Kitchener will affect the local numbers.

Conestoga College, which has campuses in the region’s three major cities, had 37,000 study permits approved or extended in 2023 and had its student population double over the past four years to 45,000 students. Recently, the federal government introduced a new cap on foreign enrolment in Canada that will see the college’s permits slashed to 15,000 next year.

The region said the projections for the current budget, which includes planned investments in housing and homelessness, transit, roads, and paramedic services, would cause a property tax hike of 12 to 13 per cent, a number which does not include the police budget.

Regional councils are expected to provide input on the budget on Tuesday before staff spend the summer creating an official draft.

“We must invest in essential services that people rely on, while also considering the affordability crisis affecting our community. These will not be easy decisions for the region,” Harris stated.

The region said that later in June, it would be hosting a workshop alongside other municipalities to discuss the fiscal challenges. The region said it would extend an invite to MPs and MPPs to join in the discussion.

“It is critical that we work together to make smart investments today that will support the next generation and future generations to come.,” Regional Chair Karen Redman stated.

“We can’t do that without strong support from our partners in the provincial and federal government. Property taxpayers cannot shoulder the full cost of this growth. We need a new deal like other rapidly growing regions in Ontario and across Canada.”