Don’t stop the new main library project in an effort to reduce looming tax increases, warns Mayor Cam Guthrie. There are other things to consider, but not that.
“The reality today is that it’s already started. That project is gone. It’s already being built,” Guthrie said of the new library, noting he didn’t vote in favour of the project. “We would actually be putting the community, the taxpayers at risk to actually look at pulling that back.
“I think it would be detrimental to the city.”
Those risks, Guthrie explained, are not only from a contractual obligation standpoint with the developer and contractors, but also with regard to Guelph’s reputation within the private sector.
“It’s definitely a lightning bolt project,” the mayor added, noting its cancellation is one of the main suggestions he’s heard from constituents since the draft budget was released on Friday with a 10.32 per cent property tax increase in 2024, followed by 9.38 per cent in 2025, 8.67 per cent in 2026 and 6.67 per cent in 2027.
Guthrie’s comments came during the Budget Breakfast event held Wednesday morning, hosted by the Guelph Chamber of Commerce at Cutten Fields
During a question and answer session at the end, an audience member urged council to “take a look at the library” as a way to bring down the draft spending plan.
“In these tough times where costs are increasing all over the place and people are really struggling … a needs budget is what is required and not a wants budget,” the person said, expressing concern the project will come in above its approved $62 million construction budget, along with increased operating costs.
Council of the day approved the new library in 2020 as part of the Baker Street reconstruction project that includes residential and commercial space as well as some public areas. A ground-breaking ceremony was held this past June.
In order to bring the proposed tax increases down, council will have to take a look at the level of city services provided and/or project postponements, CAO Scott Stewart told the roughly 150 people in attendance.
“If it was easy, it would be done already, just like running all your businesses,” Stewart said. “You can get that down to zero, but I promise you’re not going to like the value component. Value is an important piece.”
The draft budget is broken out into three categories when presented publicly – things council can control such as city service levels (4.97 per cent increase), things council can’t control including the police and library budgets (1.98 per cent increase) and the provincial impact local levy brought on by changes to legislation (3.38 per cent).
“If you want to get mad at us, get mad at us on the 4.97,” Guthrie said of the draft tax increase. “That is what is under our oversight, jurisdiction and control.”
Included in those provincial impacts are $4.6 million more for social and housing services provided through the County of Wellington, ongoing instalments of $750,000 toward expansion efforts at Guelph General Hospital (council made a six-year commitment for that) and the impact of provincial housing legislation changes in the past year.
City staff have projected a loss of $227 million in development charges, parkland fees and others over the next 10 years – money that would have been collected from new builds to help cover the cost of infrastructure and expanding city services to new residents.
Provincial officials promised to make municipalities financially ‘whole’ in the wake of those legislative changes, but that hasn’t happened at this time.
“I’m sick and tired of sort of the province skating around a lot of these issues that are coming home to roost to city councils across this province,” Stewart said, referring to social service and mental health funding, as well as housing legislation changes.
Asked by chamber CEO Shakiba Shayani what event attendees could do to help council with decisions around the budget, Guthrie said that in addition to making suggestions around specific issues and providing observations from their own experiences, advocacy efforts could make a difference.
“I need your voices, I need your social media,” Guthrie said, noting the city is already working on advocacy with other levels of government. “If you’re connected and able to help with that advocacy work as well, I think we would really appreciate that.”
