With an eye on bringing down a potential six per cent property tax increase next year, council members floated several ideas and sought additional information on a number of items in the draft budget.
Those thoughts, shared during a special council meeting Tuesday that saw the draft 2022 and 2023 budget formally presented, include delaying some projects and postponing potential new hires, as well as reallocating plans to phase in operating costs for the South End Community Centre and new central library.
Council began budget deliberations facing a 3.64 per cent property tax increase for 2022 and a 4.69 per cent rise in 2023. That doesn’t take into account the cost of 13 previously-approved service enhancements or fulfilling council’s commitment to a special tax levy to help cover the cost of expansion plans at Guelph General Hospital.
With those factored in, the initial 2022 increase was is the range of six per cent.
Approved in 2019, council postponed a $750,000 contribution to the hospital during deliberations on the 2021 budget.
The draft budget comes with more than $481 million in operating expenses for the next year and nearly $501 million in 2023.
With the exception of inflation and contracted wages increases, most expenditures are held at the same levels as this year, explained treasurer Tara Baker, though the draft budget includes hiring the equivalent of 7.5 full-time staff next year and 11.7 in 2023.
Many of those staff positions are needed to fulfill legislatively-mandated changes, such as a speedier development approvals process, council heard.
If approved without the service level enhancement projects, the average residential property owner can expect a $150 increase to their annual property taxes, Baker noted.
Water and wastewater rates are also slated to rise by 2.61 and 2.86 per cent in the next two years.
Council made no decisions on Tuesday, referring the budget to a Dec. 2 meeting for potential approval.
A second special budget meeting is set for Thursday evening, when council will hear budget requests from delegates.
Mayor Cam Guthrie asked about the financial impacts of delaying major projects such as the South End Community Centre and new central library for a year or more, given that current supply pressures have driven up material and labour costs.
In response, Greg Clark, the city’s manager of financial strategy and long-term planning, said market costs don’t typically go back down.
Much of the money that’s included as a phase-in for operating expenses is already allocated to reserves for projects within the draft budget, added Baker.
Coun. Dan Gibson asked about the impact of delaying transit route changes endorsed by council the night before, pending budget approval, as well as pushing off some infrastructure renewal funding.
City staff indicated they’ll look into those possibilities, as well as the potential delaying of hiring contract heritage staff, as pondered by Coun. Dominique O’Rourke.
Among the 13 previously-approved and yet unfunded initiatives include $87,200 in 2022 and $180,500 in 2023 to implement digital and customer service enhancements; hiring four new paramedics to run an additional shift as part of implementing the paramedic services master plan ($610,800 in 2022 and $343,800 with two more paramedics in 2023); and nearly $500,000 to move forward with the cultural heritage action plan.
Collectively, local boards and shared services, such as Guelph Police Service and Guelph Public Library, account for a 1.53 per cent overall tax levy increase for 2022 and another 1.84 per cent for 2023.
Council has no authority to make changes to those budgets, but it can ask.
The library board is seeking a 2.5 per cent increase for next year, spurred in part by plans to eliminate late fees, while The Elliott Community wants a 3.6 per cent increase and Guelph Police Service is after an additional 3.73 per cent.
This is the city’s first multi-year budget, covering 2022 and 2023, as it steps toward the practice of setting four-year budgets to align with terms of council, CAO Scott Stewart stated. This, he explained, is intended to provide more predictable tax levy and rate impacts, as well as increase confidence in the city’s finances.
The strategic plan sets the vision, while the budget sets the pace, he added.
