CIty council passed its lowest budget increase in years Tuesday, approving a 2019 increase of 2.69 per cent.
Although the official tax rate won’t be finalized until April, as it stands right now the 2.69 per cent would equate to a property tax increase of $108 on a home assessed at $400,000.
Council voted 12-0 in favour of the budget.
Ward 3 councillor Phil Allt could not attend Tuesday’s meeting due to a longstanding personal commitment.
The 2019 budget includes the dedicated 1 per cent infrastructure levy for roads, building renewal and bridges.
“This is one of the lowest budgets, minus the levy, ever,” said Mayor Cam Guthrie.
Council started the day with a 3.63 per cent increase but whittled it down over the course of a five hour meeting.
The big move was cutting half a per cent off the infrastructure levy. It was supposed to be 1.5 per cent this year, making up for borrowing half a per cent out of reserves to cover last year’s 1 per cent.
But council voted against paying back that half per cent this year.
The new budget adds 22 full-time employees to the city payroll, although six of those were for Guelph Police and eight were paramedics needed for a new shift.
Staff had asked for 24 more full-time employees. Rejected were two new staff for a customer service initiative.
Council committed $302,400 from reserve funds to three initiatives that came out of the Mayor’s Emergency Task Force aimed at the homeless and addiction issues:
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$150,000 for a five-bed supportive recovery room.
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$61,200 for a court support worker.
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$91,200 for two community support workers for the Downtown Guelph Welcoming Streets initiative.
The $302,400 is just the city’s portion. The County of Wellington and other local agencies will also be contributing funds and the city will look at a sustainable funding model moving forward.
“We should be applauding ourselves for moving fast on this,” Guthrie said.
What is becoming an annual debate over the city’s annual 1 per cent infrastructure levy took place.
This year’s levy was actually supposed to be 1.5 per cent, an increase needed to pay back the 0.5 per cent the city took from reserves to cover half of last year’s 1 per cent.
But a motion by councillor Mike Salisbury to put it back to 1 per cent.
Gibson’s attempt to get it reduced to 0.5 per cent was rejected.
City treasurer Tara Baker said that the city’s capital forecast for 2020 to 2028 would have to be adjusted given the change in funding the vote meant.
Gibson attempted to get another $300,000 removed from the budget, part of the $600,000 cost of cancelling paid on-street parking, but was shot down. He wanted that cost spread over two years.
“We’ve already moved a whole lot ahead to next year,” coun. Leanne Piper said, adding that Gibson’s proposal would create a “double whammy” next year.
Other Budget decisions from Tuesday’s meeting include:
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$330,000 to be added annually to the city’s affordable housing reserve.
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$158,000 to the Rotary Club to help complete a section of trail near Guelph Lake.
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$21,225 for additional training for councillors
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Significant parking fee increases on two city lots in residential neighbourhoods - on Norwich Street and Arthur Street - will be spread out over two years rather than one year. (passed by a 9-3 vote).
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Council voted to accept eight of nine mitigation measures staff came up with to reduce the budget, which reduced it by 0.44 per cent.
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Council turned down a request for two new full-time employees in customer service at a cost of $345,800.
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Council rejected a motion by Coun. Leanne Piper to add $50,000 to the Community Well-being Grant
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Council will look for corporate sponsors to expand its reusable water bottle dispensing machine program to more city facilities.
