$1 billion in capital projects on chopping block as Guelph struggles with 2025 budget

JustSomePics, CC BY-SA 4.0 , via Wikimedia Commons
JustSomePics, CC BY-SA 4.0 , via Wikimedia Commons

Ontario Construction News staff writer

The City of Guelph will delay more than $1 billion in planned capital projects in order to reduce next year’s budget increase below four per cent.

Projects recommended for deferral include building a new Waste Resource Innovation Centre, a new fire department headquarters and paramedic station replacement.

More than $530 million in road construction projects will be deferred, along with $229 million in transit projects and several sports field projects.

Mayor Cam Guthrie put recommendations forward to help the city meet a four per cent or less property tax increase target for 2025.

“I heard loud and clear from the community that a nearly 10 per cent tax impact for 2025 was unacceptable, and I agreed,” Guthrie said. “Affordability was a critical priority when developing the 2025 draft budget at under 4 per cent.

“This was a painstaking and challenging process, but the resulting property tax impact rate was certainly worth the effort to ensure Guelph residents and businesses keep more of their hard-earned money while our city continues to move forward.”

The 2025 budget was previously adopted as part of the 2024-2027 Multi-Year Budget with a net tax levy increase of 9.8 per cent over 2024. The draft budget released today was updated to align with the Mayoral direction that was introduced earlier this year using the Strong Mayor powers.

Under the Mayoral direction, staff were tasked with updating the adopted 2025 operating and capital budget with the goal of achieving a property tax impact of no more than four per cent.

According to a statement from Guthrie, high priority projects that would impact safety, support housing in priority areas and work required by legislation will not be impacted.

Deferred capital projects are designated as “low priority” initiatives including amenities that support population growth, housing infrastructure in non-priority areas and service enhancements without grant funding commitments.

“The draft 2025 budget update presents a funded, 10-year capital plan, as directed by Council last year, and I am just so thrilled to have this achievable plan from which we can facilitate effective service delivery discussions with council” said Tara Baker, chief administrative officer. “The city is still making significant investment in environmental initiatives, housing-enabling infrastructure including downtown placemaking enhancements, and the modernization of service delivery, all guided by our strategic plan.”

City council will hear public delegations regarding the draft budget on Nov. 19, during a special budget meeting set to begin at 6 p.m. and council will consider recommendations on Nov. 27.

The mayor then has 10 days to veto any amendments approved by council.

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