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The City of Guelph is facing the challenge of trimming $15.5 million from the 2025 budget in order to reach a four percent reduction target set by Mayor Cam Guthrie. This is a significant decrease from the originally approved multi-year budget that included a rate hike of 8.52 per cent in 2024 and a projected 9.80 per cent hike for 2025. In response to the mayor’s directive, city staff are exploring options to defer projects and services, with potential areas for deferral including a new paramedic shift and Guelph Transit service improvements. These reductions would impact both the 2024 capital and operational budgets.

Mayor Guthrie emphasized the importance of achieving a more affordable budget for the community, stating that he would prefer to have difficult discussions and make tough choices now rather than burden taxpayers with a 10 percent budget increase that would be unaffordable. The report suggests that the city’s share of the tax levy for 2025 would be capped at 2.63 percent, with 1.37 percent coming from local boards and shared services. However, this level of funding would not be sufficient to address inflation in 2025 and would leave no room for new investments. City officials acknowledge that the task of cutting millions of dollars from the budget is challenging but necessary.

City officials, including CAO Scott Stewart, are considering pausing programs with a 2025 operating impact and evaluating both capital and operational expenditures for possible reductions. While Stewart acknowledges that the process of making cuts is difficult, he affirms that it is feasible. The goal is to present a draft of the revised 2025 budget in the fall, after carefully evaluating and selecting areas for deferral in order to meet the budget reduction target. These decisions will not only impact the immediate budgetary needs but will also have long-term implications for the city’s financial stability.

The budget reduction process in Guelph is not without its challenges, as city officials confront tough decisions about where to make cuts in order to achieve the desired reduction target. Despite the difficulties, Mayor Guthrie and city staff are committed to working towards a more affordable budget that is sustainable and considers the impact on taxpayers. The upcoming draft of the revised 2025 budget will provide further insights into the specific areas that will be deferred or reduced, outlining the city’s financial priorities and goals for the future. In the face of fiscal constraints and the need for prudent financial management, Guelph is taking proactive steps to ensure the long-term financial health of the city while continuing to provide essential services to its residents.

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