City of Guelph looking at deferrals for 2025 in attempt to reduce tax levy impact

The City of Guelph is looking at deferring projects and services as they try to trim $15.5 million from the 2025 budget.

In an information report from the city’s corporate services department, that is the amount that will need to be reduced in order to get it down to four per cent, a figure that Mayor Cam Guthrie wants to see for next year.

Using strong-mayor powers, Guthrie issued a direct order to staff on Feb. 28 months after city council approved a multi-year budget that saw a rate hike of 8.52 per cent in 2024 and a projected 9.80 per cent hike for 2025.

“We looked at pausing some programs this year that have a 2025 operating impact,” said CAO Scott Stewart. “Whether that is capital or operating dollars, we want to be in front of that or have some consideration to it.”

Some of the areas being suggested for deferral include one of two new paramedic shifts and Guelph Transit service improvements. The report also notes any expected budget reductions for 2025 would have an impact in both the 2024 capital and operational budgets.

“I knew it would raise difficult discussions and choices about what it would take to achieve a more affordable budget for the community,” said Guthrie in an email to Global News.

“I would much rather have a conversation about what a four percent or less budget contains, instead of rolling over and flat out accepting a 10-per cent budget that I believe would be clearly unaffordable for taxpayers in our city.”

The report suggests the city’s share of the tax levy for 2025 would be capped at 2.63 per cent with 1.37 per cent coming from local boards and shared services. It warns that it won’t be enough to address inflation in 2025 and leaves no budgetary capacity for new investments.

“These aren’t easy choices and it’s millions of dollars to pull out of the budget,” Stewart said. “It’s very doable, but it’s never easy.”

A draft of the revised 2025 budget is expected to be brought before in the fall.

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