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ICYMI: City tax hike likely headed for 6.08 per cent

City-controlled portion of the 2025 budget set at 3.66 per cent more than in 2024; independent boards still to come
20210420 Guelph City Hall RV
Richard Vivian/GuelphToday file photo

This article was previously published on GuephToday.

As council formalized a likely 6.08 per cent property tax increase next year, much of its time during a Wednesday morning amendment meeting was spent debating the merits of additional funds for community grants and public art.

Those two items account for less than $170,000 in the more than $30 million operating budget had they both been approved. They weren’t.

While the city-controlled portion of that tax jump – a 3.66 per cent increase – was put in place, the rest of the budget won’t be known until January. That’s when outside boards and committees, such as police and library, will present their budgets to council.

The estimated 6.08 per cent increase is based on preliminary board budgets.

“I think we’ve landed in a balanced, good place,” said Mayor Cam Guthrie. “This is the amendment (day) for council and I respect that.

“I’m not going to be vetoing anything,” he added of council-approved amendments and the use of strong mayor powers that give him the ability to override council decisions.

The city-controlled increase means a $174.21 property tax increase for the year on the median residential single-family detached home assessed at $408,000

Much of council’s time on Wednesday was spent discussing amendments that would see community grant base funding increased by $167,400 to $500,000 and $100,000 for the public art reserve.

The prior was approved while the latter was rejected. Both amendments were proposed by Coun. Carly Klassen.

“We heard a lot from the community regarding funding for the community grants,” she said, referring to public requests to increase funding. “This granting program benefits everyone – the social sector, you’ve got arts, culture, there’s many opportunities.”

Last year saw grants provided to about 65 community groups for things such as food security and after-school programs, as well as support for sports and the arts.

“We use taxation to level the playing field for all of the community,” Coun. Leanne Caron added in support of the amendment. “Households are struggling.”

That amendment was approved with councillors Christine Billings, Ken Yee Chew and Dan Gibson opposed.

“It’s easy to get focused on the trees instead of the forest. I’m getting uncomfortable with the (tax increase) number,” said Gibson, who proposed amending the motion to increase community grants in 2026 instead, but that failed 8-5. “We’re dealing with an affordability crisis. …I don’t believe this is the year to increase that to half a million dollars.”

Gibson was among the council members to vote down the proposed restoration of $100,000 for the public art reserve fund.

“We’re heading into some stormy times and I feel the need to kind of focus,” said Coun. Linda Busuttil, who joined with Gibson, Guthrie and councillors Michele Richardson, Dominique O’Rourke, Rodrigo Goller, Billings and Chew. “If I had this money, I’d prefer to put it somewhere else.”

“There’s a lot of cities where it’s private money that does public art,” noted O’Rourke. “I’m just not comfortable supporting this this year.”

Public art is an element of equity in the community, argued Coun. Erin Caton.

“We can have Indigenous art. We can celebrate the increasing number of cultures in our community through art,” they said. “Art is not just something pretty to look at, it’s something that makes you feel something and we need more of it in the city to include all of the population that lives here.”

Many of the approved budget amendments came as ‘respectful requests’ for the mayor to include funding in future years, though they don’t commit him to doing so.

They include increasing funding for the celebrations around the 200th anniversary of the settlement of Guelph in 2027. Guthrie previously pulled all funding – $905,000 over three years – then put $103,000 back in for 2025.

He’s now been asked to consider committing another $300,000 in 2026 and $200,000 in 2027.

Guthrie has also been requested to consider increasing the city’s allocation to an affordable housing reserve by $400,000 in 2026.

Other amendments approved by council on Wednesday include:

  • Restored $100,000 in funding for the design of and public consultation regarding a new park in the east end, located off York Road near the former Ontario Reformatory, known as Beaumont Park. That spending had been pushed to 2028 in the mayor’s draft budget.

  • Construction of Beaumont Park, pegged at costing $815,000, be returned to 2026 from 2029, including $150,000 for rubber-surfacing.

  • $56,700 for a coordinator to help with boards and committees

  • $50,000 in 2026 for recruitment and training of advisory board members

  • Restore $1.5 million annually for 10 years for initiatives aimed to helping the city reach its target of using 100 per cent renewable energy by 2050

  • $100,000 to potentially expand corporate sponsorships in the city

  • Council unanimously agreed to pull at $750,000 contribution to the expansion of Guelph General Hospital’s emergency department from the tax stabilization reserve rather than the tax base – something it’s done in each of its previous installments in the $4.5 million commitment.

The budget further includes service reductions totalling more than $3.1 million, with $127,000 in service enhancements included in the budget.

When Wednesday’s meeting began, a 3.21 per cent increase in city taxpayer spending was anticipated next year. 

That’s down from the 9.79 per cent increase for 2025 when the 2024 to 2026 multi-year budget was finalized last year.


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Richard Vivian

About the Author: Richard Vivian

Richard Vivian is an award-winning journalist and longtime Guelph resident. He joined the GuelphToday team as assistant editor in 2020, largely covering municipal matters and general assignment duties
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