Council considered Financial Services Department report FIN-2024-520, dated December 2, 2024, introducing the Mayor's proposed 2025 Budget. In addition, Council was in receipt of a written submission from Threshold Supports related to the 2025 Budget.
Councillor P. Singh, Acting Mayor, provided opening remarks related to the 2025 Budget and requested Councillor S. Davey as the Chair of Finance and Corporate Services Committee bring forward the Budget on behalf of Mayor B. Vrbanovic who was not able to be in attendance this date.
Councillor S. Davey presented the 2025 Budget, noting the Draft 2025 Budget was presented to Council for consideration and discussion at Finance and Corporate Services Committee meetings (Operating Budget and Capital Budget) held on November 18th and 25th, 2024.
The 2025 Draft Budget that was prepared by staff, and presented for Council’s consideration, builds on the success of previous budgets, by continuing to address priorities that are important for Kitchener and its residents:
- From delivering the programs and services that residents and businesses rely on every day,
- to investments in infrastructure that help to address the City’s asset replacement and growth-related needs, and,
- to providing funding to implement the City’s 2023- 2026 Strategic Plan that will help shape Kitchener’s future.
S. Davey stated a proposed tax increase of 3.9%, maintains existing services levels for the approximately 50 core services, and still responds to growth related pressures that come with welcoming new residents to the City. It also ensures that Kitchener’s average property tax increase over 10 years remains below Ontario’s inflation rate increases during that same time period. S. Davey further advised, although Kitchener only makes up 30% of the residential tax bill, with the Region representing 57%, and Education taxes making up the remaining 13%, Kitchener has always demonstrated its commitment to considering affordability, consistently delivering tax rate increases that are aligned with the rate of inflation in Ontario.
S. Davey commented during the past 10 years, Kitchener’s tax rate increases have averaged 2.47%, below Ontario inflation which has averaged 2.64% during that same timeframe. S. Davey indicated Kitchener is also making important investments in infrastructure, recognizing the need to take care of the $10B worth of assets that the City is responsible for, while also moving forward with new infrastructure that’s needed to support housing and a growing community. The City’s $1.9B capital budget identifies the infrastructure that is planned to be replaced over the next 10 years. Although the City’s planned investment over 10 years is significant, it’s important to reiterate that this is still not enough to address all of the City’s infrastructure replacement needs and we join in calls for a new fiscal arrangement for municipalities over the long-term with both the provincial and federal orders of government to address this gap. The 2025 Budget highlights approximately $75M in funding that will help to advance strategic priorities. This includes $56M in Federal and Provincial funding that the City has received to advance affordable housing initiatives. S. Davey noted for the $1M identified as a Strategic Addition, the funding has been allocated for a community court investment program that will see 10 basketball or tennis/pickle-ball courts installed or rehabilitated in various wards across the City. This investment will see the installation of new courts in under-serviced areas of the City or enhance the condition of existing courts, recognizing that these types of recreational amenities serve as an important and free gathering space for residents of all ages in neighbourhoods across Kitchener.
S. Davey stated after reviewing the Proposed 2025 Budget, if any member of Council wishes to put forward an amendment for consideration, formal amendments must be received by the Clerk by December 9, 2024, any amendments will be dealt with at a December 12, 2024 Special Council (Final Budget Day) meeting. Finally, S. Davey encouraged members of Council to review the budget report from Regional Council related to the Regional Budget, including removal of sanitation bins at transit stops, removal of downtown garbage collection; and charging of rent for emergency services locations.