After a solid month of hard work and preparation, the moment for hard decisions has arrived. At this special meeting of council, the horseshoe will walk though the minefields of affordability and need in order to reach a decision on the 2024-2027 multiyear budget that’s unlikely going to please anyone. Let’s lay it all out on the table with this preview of what may not actually be the final budget meeting (if a certain someone uses a “V” word).
NOTE #1: Since this is the budget decision meeting, there will be no delegations but there is still opportunity for correspondences. Council will vote to suspend the procedural bylaw to allow all correspondences received by November 24 at 10 am to be allowed as part of the public record.
NOTE #2: In addition to meeting in-person, this meeting will also be live-streamed on the City of Guelph’s website here.
CLOSED MEETING:
10C/Farmers Market Contractual Obligations – Presumably, this has to do with 10C’s request for funds to make capital improvements to the the Farmers’ Market building. This must first be discussed in closed session under Section 239(2) (f) and (k) of the Municipal Act for “advice that is subject to solicitor-client privilege, including communications necessary for that purpose and a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the municipality or local board.”
2024-2027 Multi-Year Budget – This is budget amendment day, or budget decision day as it used to be known. Because the mayor is now technically responsible for the budget, the budget is presented and then amendments are proposed and adapted by council. Then it’s in the mayor’s corner, either he allows the amended budget to proceed, or he can veto the amendments and return to the original version. Council then has two weeks to hold a meeting and put together the two-thirds of votes needed to override the veto.
There’s a good explanation of this process on a recent episode of the Breezy Breakfast Radio Hour, which you can listen to by clicking here.
For further background about the budget this year, up can follow the links below for all the Guelph Politico coverage of the previous budget meetings:
Budget Presentation Meeting – November 7, 2023
Preview | Live-Blog | Post-view
Budget Public Delegation Night – November 15, 2022
Preview | Live-Blog | Post-view
Budget Workshop Meeting – November 22, 2023
Preview | Live-Blog | Post-view
Here’s the original motion for the 2024-2027 Guelph multiyear budget (and note that due to changes in the funding request for Wellington County Social Services and the release of the new property assessment numbers, the current total increase for 2024 over last years is 9.9 per cent):
1. A 2024 operating budget with a gross expenditure budget of $556,280,013 with a 2024 property tax and payment-in-lieu of taxes levy requirement of $329,828,159 or 10.32 per cent over 2023 inclusive of the following:
a) City service budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2024 of $14,700,752 or 4.97 per cent.
b) Local Boards and Shared Services budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2024 of $5,872,283 or 1.98 per cent.
c) A Provincial housing, homelessness, and hospital budget requirement, totalling an increased net levy requirement in 2024 of $9,969,945 or 3.37 per cent.
d) 2024 user fees, rates, and charges.
2. A 2024 capital budget in the gross expenditure amount of $208,666,722, inclusive of funding transfers from capital reserve funds and other sources including partnerships, grants, and debt financing.
3. A 2025 operating budget with a gross expenditure budget of $599,947,552 with a 2025 property tax and payment-in-lieu of taxes levy requirement of $364,197,218 or 9.38 per cent over 2024 inclusive of the following:
a) City service budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2025 of $21,136,498 or 6.41 per cent.
b) Local boards and shared services budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2025 of $6,399,367 or 1.94 per cent.
c) A Provincial housing, homelessness, and hospital budget requirement, totalling an increased net levy requirement in 2025 of $3,040,170 or 1.03 per cent.
d) 2025 user fees, rates, and charges.
4. A 2025 capital budget in the gross expenditure amount of $234,129,280, inclusive of funding transfers from capital reserve funds and other sources including partnerships, grants, and debt financing.
5. A 2026 operating budget with a gross expenditure budget of $647,249,988 with a 2026 property tax and payment-in-lieu of taxes levy requirement of $399,946,642 or 8.67 per cent over 2025 inclusive of the following:
a) City service budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2026 of $22,069,306 or 6.06 per cent.
b) Local boards and shared services budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2026 of $8,018,181 or 2.20 per cent.
c) A Provincial housing, homelessness, and hospital budget requirement, totalling an increased net levy requirement in 2026 of $1,473,670 or 0.40 per cent.
d) 2026 user fees, rates, and charges.
6. A 2026 capital budget in the gross expenditure amount of $338,394,567, inclusive of funding transfers from capital reserve funds and other sources including partnerships, grants, and debt financing.
7. A 2027 operating budget with a gross expenditure budget of $688,808,424 with a 2027 property tax and payment-in-lieu of taxes levy requirement of $431,233,766 or 6.67 per cent over 2026 inclusive of the following:
a) City service budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2027 of $19,355,854 or 4.84 per cent.
b) Local boards and shared services budget requirement, net of the proportionate share of assessment growth, totalling an increased net levy requirement in 2027 of $6,635,252 or 1.66 per cent.
c) A Provincial housing, homelessness, and hospital budget requirement, totalling an increased net levy requirement in $696,630 or 0.17 per cent.
d) 2027 user fees, rates, and charges.
8. A 2027 capital budget in the gross expenditure amount of $482,381,206, inclusive of funding transfers from capital reserve funds and other sources including partnerships, grants, and debt financing.
9. A 2028-2033 Capital forecast in the gross amount of $1,918,985,045.
On top of that, there’s another slate of recommendations that need to be passed that are outside the scope of the budget vote that needs to happen under the Strong Mayor legislation. These decisions are in three categories: the requirement for a council-approved by-law to levy taxes, rates and fees; a requirement for council to change or use reserves; and/or any instance where additional direction from staff is required.
1. That the 2024-2027 rates, fees and charges be approved, subject to amendments during the budget confirmation years.
2. That the Downtown Guelph Business Association budget be approved, subject to any amendments in budget confirmation years, as follows:
a) A 2024 budget with gross expenditures of $697,955 and a total levy of $700,194.
b) A 2025 budget with gross expenditures of $686,480 and a total levy of $721,200.
c) A 2026 budget with gross expenditures of $706,055 and a total levy of $672,836.
d) A 2027 budget with gross expenditures of $726,655 and a total levy of $695,121.
3. That in accordance with the General Reserve and Reserve Fund Policy, total transfers to and from reserves and reserve funds for 2024 to 2027 are approved, subject to amendments during the confirmation budget years.
4. That the following reserves and reserve fund changes be approved, and Appendix A of the Reserve and Reserve Fund Policy be amended accordingly:
a) Contaminated Sites Reserve Fund (155) be renamed to Brownfield Renewal Reserve Fund
b) City Building Reserve Fund (159) be renamed to Service Enhancement Reserve Fund, and
c) Industrial Land Reserve (332) be renamed to Strategic Property Reserve and that the purpose and terms be updated to broaden the source and use of funds.
5. That Council acknowledges the City’s operating contingency reserve balances are below approved targets, and that staff be directed to replenish these reserves as a first priority through the allocation of year-end surplus until such point that they reach a minimum of 75 per cent of target over the multi-year budget period.
6. That Council acknowledges that the 2025 to 2033 Capital Budget and Forecast is creating reserve fund deficits and that staff be directed to balance the capital budget and forecast within available funding and report back to Council on the changes required through the 2025 budget confirmation.
7. That staff be directed to report quarterly on the actual development charge collections and exemptions and overall funded status of the development charge reserve funds through the budget monitoring reports effective immediately as part of the third quarter 2023 reporting.
Council will also pass one final amendment that will draw to a close the 30-day budget amendment process early, essentially the end of this meeting will be the end of the 2023 budget process, save for the possibility that the mayor vetoes anything of course.
Guelph Politico 