Guelph Transit improvements and route review, plus a new paramedic shift, are two of the key things being put on hold as city looks to slice $15.5 million from the the 2025 budget.
"Overall, as staff prioritize service delivery to meet the 2025 budget target, there will be deferrals to planned service expansion starting in 2024," says a staff report released Friday.
Last November Guelph passed a four-year multi-year budget that included a 2025 tax levy increase of 9.8 per cent over 2024. In February Mayor Cam Guthrie used his strong mayor powers to direct staff to bring forward a 2025 budget that was no more than a four per cent tax levy increase over 2024, split proportionally between the city and the relatively independent local boards and shared services (LBSS) agencies.
"This will require a $15.5 million dollar reduction from the City’s portion of the 2025 adopted budget. The LBSS share of four per cent is 1.37 per cent. This will mean a $3.4 million reduction from the 2025 adopted budget for LBSS," says the information report.
The report points out that the city portion of the increase, 2.63 per cent, doesn't even keep up with inflation, let alone new projects, investment and capital expenditures.
"Staff are faced with some difficult decisions to present the Mayor with a budget as directed. The 2.63 per cent tax levy envelope is insufficient to address inflation in 2025 leaving no budgetary capacity for new investments (50 per cent of the impact of 2024 staffing, operating impacts from 2024 capital project or planned 2025 new investments), nor the ability to continue the same level of investment in funding for the City’s capital plan," the report says.
Service investment deferrals will include investments recommended from the council approved Guelph Transit Future Ready Action Plan, Urban Forest Management Plan, Parks and Recreation Master Plan, Culture Plan, Transportation Master Plan, Water and Wastewater Servicing Master Plan, Solid Waste Management Master Plan, Water Supply Master Plan, Wastewater and Biosolids Management Master Plan, Stormwater Management Master Plan , Downtown Parking Master Plan and Service Simplified Customer Service Strategy.
"It will also mean a delay in reaching Council approved targets, most notably, Race to Zero."
Transit plans for 2024 are being put on hold because of their budgetary impacts in 2025.
"This means that Sunday service improvements, along with the introduction of enhanced frequency on route 5 servicing the south end, will both be on hold," the report says.
Some hiring are also being deferred.
No word yet on how independent boards like the Police Service Board and Library Board will address the budget cuts.
A draft 2025 budget comes to council for initial consideration in late October. The updated 2025 budget will be released mid-November, followed by public input before being finalized.
