Guelph city council approved its first multi-year budget, which comes with a 4.21 per cent property tax increase next year and another 5.17 per cent increase in 2023.
The city has begun to move toward multi-year budgets, beginning with a two-year budget and eventually getting to four-year budgets.
Guelph hasn’t seen property tax increases like these in quite a while with annual property tax hikes all being under four per cent for the past several years.
On Thursday night, council agreed to invest another $11.2 million into its operating budget next year and $14.5 million in 2023.
The 2022 budget increase for local boards and shared services is $4.1 million next year and $5.1 million the year after. Local boards and shared services include Guelph police, the library, the Elliott Community, the Grand River Conservation Authority, Wellington County Social Services and public health.
“Council’s approval of the 2022 and 2023 budget and receipt of the two-year operating and eight-year capital forecasts sets the pace for the projects, initiatives and services that will make our community and organization future-ready,” said deputy CAO Trevor Lee.
“The budget is about investing in programs and services that improve community well-being, while being fiscally responsible today and into the future.”
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The two-year budget approved on Thursday night also includes changes to user fees for water. There is a 2.61 per cent increase in 2022 and a 2.73 per cent increase in 2023 for the average home in Guelph.
The capital budget totals for 2022 and 2023 are $141.4 million and $161.9 million. The city said it focuses on replacing aging infrastructure and building new assets.
The city is also introducing an affordable Guelph Transit bus pass and free rides for kids, spending $50,000 for a court support worker, and $91,000 for the Welcoming Streets Initiative that ensures the safety of downtown.
Council agreed to increase hourly parking rates from $2.18 to 2.66, which should bring in an additional $93,000 in revenue next year. Downtown parking permits are also increasing by five cents next year.
Council voted in favour of including the $750,000 levy for Guelph General Hospital for the second and third year of the six-year commitment, however, city reserves were used to mitigate a tax levy impact.
The budget did not pass unanimously, but in an 8-5 vote with Mayor Cam Guthrie voting against it.
“We did work very well and collaboratively and respectively together throughout the whole day here to get to this decision,” Guthrie said afterwards.
“Even if someone like myself is not on side with it, we’ve got to move on. It is what is and council has made the decision.”
Despite not being in favour of the budget, Guthrie said there are a lot of good things, pointing to investments in transit, community groups and infrastructure.
“We’re continuing to build a bigger city, a maturing city,” he said.
The final budget can be found on the city’s website.
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