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‘We need to be prepared,’ mayor warns in State of the City Address

Looming trade war mixed with potential political shifts provincially and federally have created ‘largely uncertain times,’ Guthrie says

In these “largely uncertain times,” we all need to work together to weather the potential storm, Mayor Cam Guthrie stressed during his annual State of the City Address.

Given the looming trade war with the United States, a provincial election underway and a possible federal election to follow, there’s potential for substantial change in the coming months, including job losses, upper-tier funding changes that impact property taxes and developer hesitation to build much-needed housing.

“The political shakeups in America, and potentially at Canada’s federal level, concern me as the mayor. It’s the stuff that keeps me up at night,” Guthrie shared with about 300 people who gathered for the Guelph Chamber of Commerce event on Thursday morning. “I need everyone from all walks of life, all lived experiences collectively making up the diverse fabric of our city to play a role in fulfilling that mission. 

“We can and we will do it together,” he continued. “We must be flexible. We must be dynamic. We must be resilient.”

A full copy of Guthrie's prepared speech, which he strayed from on occasion, can be found at the bottom of this article.

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Chief among Guthrie’s concerns is the 25 per cent tariff on Canadian goods crossing into the US threatened by President Donald Trump, which, at this point, has been delayed until March.

“His threats might be just idle talk or massive tariffs could be implemented. … No one really knows,” the mayor said. 

In response to Trump’s musings, Prime Minister Justin Trudeau announced targeted retaliatory tariffs on American-made products coming into Canada, but they, too, are on pause.

“Economists predict that such a trade war would reap extreme havoc on the Canadian economy, harming many businesses and costing many people jobs,” Guthrie said. “Guelph would not be immune to that. We have a very strong and diverse manufacturing and production sector here, but it would suffer greatly if such tariffs were implemented.”

The current provincial election and possible federal contest only add to the uncertainty, he added, explaining their outcomes could impact grants to the city that could result in higher property taxes.

“Changes certainly could be coming and should (current polling) hold, the financial forecast for municipalities could be impacted drastically,” Guthrie said, identifying the federal Housing Accelerator Fund specifically. 

Several recent polls suggest the Conservative Party of Canada in the lead to form the next federal government.

Last year, the feds announced the City of Guelph will receive $21.4 million to help speed up the development plan approval process in order to open the way for new housing to be built.

“It has to be a little bit worried because the housing sector and the municipal sector need certainty,” he said, adding uncertainty makes planning difficult.  

“I am worried about some of the things that I am hearing and we need to be ready for that, both as a city, as property taxpayers – whatever we're facing this year and in the years to come, some of these factors are out of our jurisdiction, we need to be prepared.”

There were a number of policy changes made at the city level in the past year or so which Guthrie hopes helps the housing shortage locally. They include an overhaul of city-wide zoning regulations, records digitalization and automatic permission for four residential units on individual low-density properties, among many others.

Compared to two years ago, Guthrie said official plan amendment process is 135 per cent faster, zoning applications are processed 134 per cent faster and site plan take 456 per cent less time from start to finish.

“We still have a lot of ongoing work when it comes to housing in the city,” he added. “Policy-to-process takes time, but we know it’s working, and we are going to see the results.”

Guthrie's prepared speech:

Before I begin with the State of the City, there are many people in attendance this morning who I’d like to acknowledge.

I’ll start with my colleagues on City Council: Councillor Busuttil, Councillor Caron, Councillor Goller, and Councillor O’Rourke.

The City of Guelph Executive Team is also here: Deputy CAOs Colleen Clack-Bush, Jayne Holmes, and Trevor Lee, plus CAO Tara Baker.

Tara stepped into her new CAO role in September of last year after serving as the City Treasurer and General Manager of Finance since 2016. With an extensive understanding of finances and strong management practices, Tara’s transformative leadership will continue to be invaluable as we shape and grow the City. I am so glad to have you in this role, Tara. Thank you.

I see MP Lloyd Longfield, too. As most of you know, after serving as Guelph’s Liberal MP for the past 10 years, MP Longfield has decided not to seek re-election to the House of Commons this year. Lloyd, it has been a pleasure working with you over this past decade. You have represented Guelph residents tirelessly and gave them a voice in Ottawa. Thank you for all you have done. On behalf of the City, I wish you nothing but the best in your next venture.

Several friends from the University of Guelph are joining us today as well, including interim President & Vice-Chancellor Rene Van Acker. Thank you being here.

You already heard from the Chamber’s new President and CEO, Andy Veilleux. Your leadership comes at a pivotal time as we continue to foster innovation and economic growth within our community. Welcome to this role, Andy, and best wishes for your success.

Thank you to today’s many sponsors, to the Chamber staff for organizing this event, and to the Delta staff for welcoming us and providing this delicious breakfast.

Of course, I am extremely grateful for the love and support of my family: Rachel and our children, Anakin and Adelaid, and my parents, Frank and Karen. I am thankful that you are here with me today.

A CITY OF RESILIENCE

During my annual State of the City address, I take the opportunity both to look back at the previous year to highlight what the City has done, and to project forward to the coming year to talk about what the City plans to accomplish. So it’s “where we have been” and “where we are going.”

Before I begin, though, can we all acknowledge just how hard this past year has been for so many Guelph residents and businesses?

Whether it’s growing families, immigrant newcomers, students, seniors, young adults just starting out, people experiencing poverty, or those living unhoused – it's extremely tough out there.

Unless we collectively acknowledge that things aren’t great for everyone, and we work to see and understand why it’s a challenging time, it’s going to be difficult to find a positive path forward. We have to catch up and keep up, and that’s one of my jobs as Mayor and one of the vital roles of City Hall.

Despite all the challenges, I am proud that Guelph has demonstrated that it is a City of Resilience. We still had many wins and good news stories in the city in 2024. I’d like to highlight a few of them this morning.

On the market housing front, we began last year with an announcement by the federal government that the City was awarded $21.4 million under the Housing Accelerator Fund to fast-track nearly 740 more housing units than usual by December 2026. Those funds are being used to accelerate transformative and systemic changes, including policy and program enhancements that remove existing barriers to growth. Let’s take a look.

The first year of the Housing Accelerator Fund focused on policy, which leads to process, and then to results. Of course, in the end, the City will be judged by our results, but we first needed to build the policy foundation. 2024 was largely about altering the policy landscape so the City can be ready for big housing changes ahead.

Here's some of the policy actions for housing the City has taken:

In December, Council approved amendments to allow up to four housing units on a property. In 2023, the province had mandated up to three units as-of-right, but Guelph now permits one additional unit.

Guelph was ahead of the Province on these accessory dwelling unit permissions, and we are continuing to lead.

At the same time, Council approved Guelph’s 10-year Housing Affordability Strategy, which builds on the work of the City’s Official Plan and Wellington

County’s 10-year Housing and Homelessness Plan. This Strategy includes 30 actions that support the city-wide 30 per cent annual affordable housing target and addresses affordable housing issues in the private market.

Of the 30 actions in the Strategy plan, a significant one is being presented to Council next week.

The Community Improvement Plan provides incentives for the development of affordable housing. This proposal includes:

A Vacant Unit Renewal Grant to convert uninhabitable residential and vacant non-residential space into affordable residential rental units;

A New Affordable Housing Unit Grant to develop new purpose-built affordable rental or ownership unit; and

An Additional Dwelling Unit Grant to develop new affordable ADU rental units.

A small selection of the other Strategy plan actions that stood out to me and have my full support include:

Reducing or removing parking requirements for new affordable housing. Installing parking adds a significant cost to building housing units, so allowing their reduction just makes financial sense.

Collecting, monitoring, and using data on existing affordable housing stock to guide policy development, which could potentially include a renoviction bylaw or rental replacement bylaw, for example.

And issuing a call to all community organizations and private developers who have land or existing buildings available that could be converted into affordable housing. It’s important for the City to engage and partner with groups from across the city to help address our housing affordability challenges.

The City also initiated the Downtown Building Heights Study to increase flexibility for higher density development throughout the downtown. Strategically locating taller buildings in specific areas will help limit impacts on existing neighbourhoods and the historic core while protecting important heritage.

And listen, this is important:

Increased heights, and thus density, will produce more property tax revenue with decreased operating impacts that will benefit the entire city – no matter where you live or operate your business.

There are still more policy initiatives to come, but actions the City has previously undertaken are already showing great results. Watch this example.

Thanks to Andrew and Zack for showing us how smart, innovative development can go a long way to helping Guelph meet its housing targets. Their housing sites are simply amazing, and they can serve as inspiration for other developments across the city. They also include heat pumps in their builds instead of natural gas furnaces, which shows their environmental stewardship as well. As you heard, they had positive feedback about working with the City’s Building Services staff, and they aren’t the only ones.

Here are some other actual quotes sent to the City that demonstrate the value, dedication, and professionalism City staff bring to housing developments in Guelph:

“Overall, the new process is much better… we're anticipating this will streamline the process… and save about 2 weeks (from not having to demo/rebuild for inspections) and anywhere from $5k-30k in hard costs per triplex.”

“I wanted to tell you that I have been working with the city of [X] to get a building permit. It was 15 days after I dropped off the permit before I heard anything from the plan’s reviewer … and no-one let me know it was done … and I was greeted with terseness in every conversation with any staff there. Such a stark difference to what I have always experienced here in Guelph. Makes me feel very grateful for the work of you and your team in Guelph.”

“…you have been working so hard to improve the process for members of the community. I wanted to let you know that top to bottom the process was easy. The inspectors were accommodating and willing to work outside the lines a little to allow common sense to prevail. Thank you for your work to improve the process for members of the community.”

“I also want to express my heartfelt gratitude for your exceptional support throughout the building inspection process. Your prompt responses and efficient handling of every step made a significant difference in ensuring everything was completed smoothly and on time. Thanks to your professionalism and dedication, we were able to finalize the inspection without any major issues. I truly appreciate the effort you put into making this process seamless for us.”

Of course, it’s all well and good to look at the big picture when it comes to housing, but it’s also important to look at how residents are actually impacted by our housing initiatives.

In December, I had a heartwarming discussion with a senior about her housing struggles in Guelph. She’s been a resident here for a long time but was told she needed to find a new place to live. In our current housing crisis, it seemed impossible to find new accommodations that fit her budget. Unfortunately, her only solution was to move out of our city about an hour away.

This posed a huge problem because her adult son, who lives independently, has developmental challenges and she helps care for him daily. Moving out of Guelph would be an overwhelming burden to both of them, but she seemed to have no other option.

That is, until a backyard additional dwelling unit, or tiny home, offered them a lifeline. I’m thrilled to say that her new home, which has been made possible by expanding our housing options, offers a monthly price that she can afford so she can remain in the city closer to her son. And she loves it! This is but one example of how our Housing Affordability Strategy can make a real difference in people's lives.

So, let’s talk about some housing numbers.

In 2024, the City unfortunately did not meet its provincial housing target of 1,500 homes. As of the most recent reporting date, there were only 849 housing starts, or less than 60% of the target.

To put things into perspective, though, Guelph is far from alone in this Ontario housing-building deficiency.

Of the 50 municipalities that are provincially tracked, Guelph is one of the 41 that did not meet their housing target last year. Still, of those that missed their targets, Guelph’s performance is in the top 30%.

This shortfall is largely due to higher building costs faced by developers and builders, including rising construction prices and more. Higher interest rates have also played a significant role, both for potential buyers and the developers. Many builders are telling me that pre-sales have dried up completely. With lower Bank of Canada rate cuts constantly on the horizon, people are just … waiting.

The City did achieve its 2023 housing target and received $4.7 million in funding from the provincial government under the Building Faster Fund – so I’m obviously extremely disappointed Guelph missed it’s 2024 targets and won’t receive any additional money from the Fund this year.

That’s completely unfair to Guelph. Why? Because as I’ve said many times before – and I’ll say it again here today: cities don’t build houses, the private and service sectors do. Guelph Council and staff don’t control industry capacity, buyer demand, interest rates, material costs, or developer decisions.

The City is fully focused on meeting our housing targets, but there are many factors beyond our control. Penalizing Guelph and the 40 other cities that didn’t achieve their targets by withholding needed funds for these external elements just hurts everyone even more.

Money received would go towards housing-enabled infrastructure to unlock more housing across the city. So, I have a great idea: just give the cities the money to unlock the housing that we all know we desperately need. I am glad the Ford government started to do just that in 2024, but more is certainly required.

But, there’s some positive news, too. There are currently 930 housing units under review for site plan approval in Guelph and another 1,946 units in the pre-consultation stage.

The City has made significant improvements to expedite approvals over the past year as well. Compared to just two years ago:

Official Plan Amendment applications are 135% faster, zoning applications are 134% faster, and site plan applications are a whopping 456% faster. City staff is paying attention to the numbers with our “Housing Now” culture that our new CAO, Tara Baker, is leading from the top.

Yes, we still have a lot of ongoing work when it comes to housing in the City. Policy-to-process takes time, but we know it’s working, and we are seeing results.

NON-MARKET HOUSING

There’s also been some successes in the past year with other forms of non-market housing as well.

First, I really want to hit home how strongly Guelph is funding social housing and homelessness supports through the City’s transfer payments to the County of Wellington.

In 2025, the City is budgeted to pay $28.9 million to the County. This is a massive increase of $12.9 million over the last five years for social housing and homelessness costs for the City, or a staggering 80.6 per cent increase over the past five years.

Nearly $30 million annually is funded from Guelph property taxes that should instead be supported directly by upper levels of government. We need to have these social housing investments restored.

With that said, let’s keep going.

In June, Kindle communities opened 10 Shelldale. This five-storey building offers 32 permanent supportive housing units.

So many organizations were involved to make this happen, but I want to highlight Skyline and SkyDev, who went above and beyond with land, finances, resources, and advocacy to see this project through. Whenever anyone says the private sector doesn’t care about helping those in need in our community, remember this story – among the many other stories that could also be told. These comments are untrue, and we need to speak out against such narratives.

In July, the County of Wellington, as our designated Social Services Manager, opened up the doors to Norfolk Manor shelter space for 68 individuals, offering round-the-clock staff support.

In November, the University of Guelph announced that they are developing a new on-campus residence building for first-year students. Their first new on-campus residence in 25 years, this development will accommodate up to 1,500 students beginning in 2029.

In January, the Elliott Community celebrated the grand opening of the Edinburgh Long-Term Care Home Redevelopment, which adds 29 new Long-Term Care beds to the community.

Opening any day now is 65 Delhi Street, a Transitional Housing with Supports project that will house up to 28 individuals.

OTHER 2024 HIGHLIGHTS

Although housing was undoubtedly the biggest focus in 2024, I want to quickly mention a few other key highlights throughout the year.

The total value of grants awarded to the City in 2024 amounted to an impressive $60.9 million. In addition to the Housing Accelerator Fund mentioned earlier, two of the larger grants include:

$13.5 million awarded under the Federal Green and Inclusive Communities Building Program for the construction of the Baker Street Library; and

$2.1 million awarded under the Provincial Housing Enabling Water Systems Fund to support the upgrade of the sanitary sewer on Wyndham Street and the upgrade of the sanitary sewer and drinking water mains on Wellington Street 

It's important to mention that the investments made through the City’s capital plan also serve as an economic stimulus. Major housing-enabling works create jobs locally, and these initiatives reinforce stability in a time of economic turbulence.

In June, the City released its 2024 satisfaction survey results, which show that residents continue to be happy with life in Guelph and with City services – despite inflationary and affordability pressures impacting residents:

88 per cent of residents rated the quality of life good or very good in Guelph;

70 per cent continue to believe they receive good value for their tax dollars;

88 percent said they were satisfied with the information or services they received when interacting with the City;

The most important issues for Guelph residents were:

housing availability and/or affordability;

poverty, homelessness, social issues, and food security;

and property taxes and taxes in general.

In July, Stats Canada released their annual Crime Severity Index rankings, which ranked Guelph at eight lowest nationally and fourth lowest in Ontario. This is the City’s best overall ranking since 2015, when we were ranked 19th.

In August, for the third straight year, S&P Global Ratings affirmed the City’s financial credit rating as AAA with a stable outlook – the agency’s highest possible rating.

Let me be completely transparent here: it is unlikely that Guelph will maintain this rating over the next few years. The planned and strategic use of debt to address the housing crisis and infrastructure demands will impact our rating. This is a worthwhile and necessary step, however, and it does not take away from Guelph’s sound financial planning. The difference in borrowing with a different rating is negligible, and the alternative was to ignore the capital and infrastructure works required to get more housing built. This is why Council acknowledged and made fully informed decisions to prioritize one over the other for a short period of time.

In September, Council approved the Downtown Infrastructure Renewal Program. This will enhance the streetscaping and greatly expedite construction beginning in 2026, with an eye on minimizing the street closures and disruptions to businesses and residents.

As mentioned previously, the City’s former CAO, Scott Stewart, retired last year. Tara Baker transitioned from City Treasurer to Guelph’s Chief Administrative Officer in September – and I am thrilled to be working closely with her in this new capacity.

Tara’s CAO objectives for 2025 have been approved by Council, addressing key areas that impact our community: Affordability, Housing, Culture, and Relationships. Aligned with our Future Guelph strategic plan and corporate values, these objectives will guide individual and team goals throughout the year.

Also in September, Guelph awarded 14 projects a total of $53,000 through the Youth Climate Action Fund micro-grant program. My time as a Board Member on the Global Covenant of Mayors has provided me with opportunities to learn about these types of grant programs, and I am so happy that through the Global Covenant of Mayors and Bloomberg Philanthropies this grant could empower and support youth-led climate innovations in Guelph.

Guelph General Hospital opened its new Neonatal and Paediatric Outpatient Clinic in October, which provides support and urgent consultation to families who have been discharged home.

Additionally, the Province approved the next stage of the hospital’s emergency department expansion and mental health and addictions services modernization project. This hospital update has been a long time coming and is desperately needed, so I’m excited to see this work finally advance.

Also in October, Guelph’s Public Space Use bylaw came into effect. The St. George’s Square encampment was abandoned and dismantled, returning the Square to a public realm for use by everyone. Fortunately, most of the unhoused individuals who lived in the encampment took advantage of the emergency shelter space that was being offered to them.

I’d like to thank the various shelter organizations that helps the chronically unhouse in the city, including Stepping Stone, Wyndham House, Guelph Wellington Women in Crisis, Hope House, Salvation Army, Chalmers, Thresholds Homes and Supports, Kindle Communities, Michael House, Bench, Community Health Centre, and others. They certainly deserve a round of applause.

And wasn’t the Spirit of the Season in downtown Guelph a tremendous success this December? It had the Santa Parade, Santa Run, Mayor and Council Tree Lighting, indoor and outdoor Christmas Marketplace, storefront decorating contest, and so much more. Over $34,000 was raised for the Keep Kids Fed At Home charity through The Children’s Foundation as well. Thank you to the Downtown Guelph Business Association, sponsors, and to everyone who worked so hard to make Spirit of the Season a success.

Throughout the year, City staff visited close to 3,700 businesses across Guelph to conduct an employment survey. Businesses that participated provided valuable information, including employment numbers. Building data and contact details helps strengthen the City’s knowledge about our local business community so we can engage them on economic opportunities and inquiries.

A few weeks ago, the City of Guelph was named one of Waterloo area’s top employers by Mediacorp Canada for the fourth consecutive year.

And just yesterday, they also named the City one of Southwestern Ontario’s Top Employers as well!

ECONOMIC DATA

I’m going to pivot now to talk about some economic data, because measuring the numbers is key to understanding the business activity in Guelph. You cannot manage what you cannot measure.

In 2024, there was over $172 million in industrial, commercial, and institutional construction value:

106 industrial permits valued at $5 million

267 commercial permits valued at $75.5 million

34 institutional permits valued at $40.6 million

Large businesses have been expanding in Guelph, which is exciting.

Linamar is expanding its operations across the province and creating thousands of jobs by investing $1.1B into green automotive technologies.

The Co-operators opened its new headquarters, consolidating five southern Ontario locations and approximately 1,200 staff into a state-of-the-art facility in Guelph’s Hanlon Creek Business Park.

Kenvue is the world’s largest pure-play consumer health company by revenue. They completed its new 18,000 square foot manufacturing expansion at their Woodlawn facility, contributing up to 50 jobs to our local economy.

And Magna completed a 120,000 square foot expansion to their Polycon facility, which is anticipated to create over 175 new local jobs.

Beyond the large businesses, we cannot forget the importance of the small- and medium-sized businesses that also opened up – and are continuing to open in every area across our City.

The City and its partners awarded $86K in tourism funding in 2024 to 30 projects to support the visitor economy. The new “Guelph: Gather Here” brand marketing activities boosted the City’s reach to 1.2 million organic views on social media with an additional 12 million digital impressions through the Toronto Star Life section.

STATE OF THE CITY 2024

Before I talk about what’s in store for 2025, I want to look back at my State of the City from one year ago. Here, in this room, I announced that I would use the strong mayor powers granted by the province throughout the rest of this Council term.

At that time, I announced three mayoral orders that I would be signing immediately:

First: directing staff to establish the 2025 confirmation budget at a property tax impact rate of under four per cent.

Second: directing staff to identify strategic real estate partnerships on underutilized City-owned assets that could be transformed into housing.

Third: directing staff to present to Council the logistics required to provide a temporary structured encampment site for those experiencing homelessness. This final directive would have to be in partnership with the County’s Social Services Committee – as they are the legislated manger – alongside local healthcare providers, and other stakeholders to ensure ongoing operating supports would be available at the site.

The second one, about identifying underutilized assets for housing potential, is coming to Council at the beginning of March – so I consider that one successfully completed. I encourage my Council colleagues to come together and embrace this moment – not let it pass us by – and support turning these pieces of land into much-needed housing as soon as possible.

Regarding temporary structured encampments, the City has done significant work on this file and has technically fulfilled my directive of bringing information to Guelph City Council. After numerous meetings and discussions last year about structured encampments, Council referred the matter to the County of Wellington’s Social Services Committee for their review. We have been told that the County is reporting back on the referral very soon, so we will know more information from them about the potential for a temporary structured encampment at that time.

Now some people may say that two out of three isn’t bad, but I am disappointed that my first directive concerning the budget was not realized. We did not achieve a four percent budget increase. So, the natural question is “why not”?

Under the original multi-year budget, 2025 saw a projected property tax increase of nearly 10 per cent – 7.4 per cent attributed to the City’s portion and 2.4 per cent from the local boards and shared services. Working collaboratively with staff, we achieved a draft budget cap that was under the 4 per cent directive for the City’s portion.

I then spent a couple of weeks hosting town halls across the city and listening to feedback from residents, businesses, and my Council colleagues. These discussions helped me craft what I consider an even better budget, with targeted changes that made the city more welcoming, accessible, and affordable for those who need it most. These improvements came at a small cost, though.

In November, my budget was then formally presented to City Council as a whole where they amended it even further, increasing the City portion to a 3.66 per cent tax increase. This is less than half of the original projected increase of 7.4 per cent.

I am proud of this accomplishment. It required a reduction of over $15 million dollars compared to the original multi-year budget. When this was added to the increased local boards and shared services budget, which totaled 3.12 per cent, the net tax levy impact for 2025 was finalized at 6.78 per cent.

I am still glad that I used the strong mayor powers to set a course for a more affordable budget. If Council had simply adopted the City’s original budget and then added the local boards and shared services amounts on top, the final tax levy increase for 2025 would have been a whopping 10.51 per cent. 6.78 per cent is significantly lower, of course – 35 per cent lower – but I still believe these sustained, higher-than-inflation increases are too high and impacts affordability for residents and businesses too much.

Many I’ve talked to recognize the lower impact for this year and are grateful it isn’t 10.5 per cent, but they’re calling on all of Council to make 2026 and 2027 much more affordable. This is why I recently used the strong mayor powers to direct staff to provide an opportunity to hear from all members of Council in March to give feedback on ideas on what we can collectively send staff away with on budget targets for the 2026 budget confirmation this fall. Yes, ultimately at the end of the day, I will still be required to use strong mayor powers to get the ball rolling with this process, but this year it will be a discussion with Council first, and I’m looking forward to that.

I am 100 per cent committed to doing even better with the 2026 budget, and I hope my Council colleagues are, too.

HEADING INTO 2025

The next year certainly promises to be a largely uncertain time. With the provincial election underway now, a federal election on the horizon, and the ramifications of last year’s US election unfolding in real time, the City of Guelph must be flexible, dynamic, and resilient.

Getting things done FASTER is but one part of a formula on issues we need to address. Getting things done BETTER is also key. One area I’ve been discussing with City staff is overall construction management across the city.

In an ageing city, with old pipes in the ground that need to be replaced and a large portion of our annual budgets dedicated to road work, it means disruption. There’s that old saying: “There’s only two seasons in Canada: winter and construction.”

And so, as much as everyone braces every year for the roll out of major road and infrastructure construction, my push is to find out ways of doing it faster and better. This is why I’m excited to announce that we will be undertaking a full review in 2025 to identify opportunities on things such as:

Doing construction faster ;

Enhancing construction communications – internally and externally – prior to, during, and after;

Improving construction quality assurance and quality control;

Construction mitigation initiatives and supporting impacted businesses;

Further relationship building;

Internal design and tender/contract improvements –including standards and risk tolerance, and more; and

Other process improvement opportunities

Fortunately, there are already several good news stories worth highlighting.

As part of the 2025 budget, I ensured the City made strategic and compassionate investments in transit. The Affordable Bus Pass is now free for individuals and families in the city who earn under 75 per cent of the Low Income Cut Off measure. I’ve talked to many of these transit users, and when they find out they’ve just saved up to $240 a year – money that can now go towards food, rent, and other necessities – they’ve been thrilled. These individuals are often recipients of ODSP or Ontario Works, and those supports haven’t even kept up with inflation over the past several years. The impact of free transit for those who need it most is significant and far-reaching.

Seniors can now ride the bus for free all day every Thursday. Finally, youth ages 13-17 can ride for free after 5 pm on weekdays, all day on weekends and holidays, and all day every day during the summer months of July and August. Many of the students I’ve talked to are thrilled by this, as are their families and parents. I’ve been told, “Good! I don’t have to drive them all over the place now!” Households and students are saving money.

In addition to the Youth Climate Action Fund grant money I mentioned earlier through the Global Covenant of Mayors and Bloomberg Philanthopies, I am thrilled to announce that just two days ago we confirmed that Guelph will receive an additional $100,000 in US dollars to activate youth-led climate initiatives in our community in 2025.

The City will be announcing the application process in March and disbursing funds to successful projects in April. Again, I am so grateful that being the North American representative on the Global Covenant of Mayors has opened doors to bring substantial grant dollars to Guelph.

In addition to the full report coming to Council in March about converting underutilized City lands for housing, Guelph will be releasing an RFP later this month to construct a 12-unit minimum demonstration housing project at 14 Edinburgh Road South, which was previously the home of the Guelph Pottery Centre. This project is funded under the Housing Accelerator Fund and will focus on creating affordable housing units.

Soon, the HART Hub will open in the downtown to support Guelph and Wellington County residents suffering from moderate to severe mental health issues, addictions, and homelessness. The HART Hub will feature a 24/7 integrated crisis service, stabilization beds, and medically supported withdrawal management beds. I am hopeful that this new service model will provide dedicated supports to those who need it most, and I’m very thankful to the Ford government for these types of investments.

WARNINGS FOR 2025

My State of the City isn’t only about painting a rosy picture about how great Guelph is. We all know that the Royal City is amazing! I’m also here to transparently present challenges the City might face today, and the political shakeups in America and potentially at Canada’s federal level concern me as the Mayor.

Everyone in this room has heard that the Trump administration has paused for 30 days a potential trade war with Canada, which was slated to begin when he imposed tariffs on goods imported into the US. His threats may just be idle talk, or massive tariffs could be implemented in March or at some other time – no one really knows. Economists predict that a tariff war could wreak extreme havoc on the Canadian economy, harming businesses and costing many jobs.

Guelph wouldn’t be immune to the fallout either. We have a strong and diverse manufacturing and production sector that would suffer significant hardships under a punitive tariff regime.

Industry partnerships with the Federation of Canadian Municipalities, Association of Municipalities of Ontario, Ontario Big City Mayors, and both the federal and provincial governments are vital when developing contingency strategies and advocating for specific supports. In the coming weeks and months, I’ll certainly be monitoring any US tariff directives to ensure the City of Guelph plays its role in maintaining a resilient manufacturing sector.

As part of the executive with Ontario Big City Mayors Caucus, I am working to reach out to other Mayor groups in America to see how we can spread the message of working together. Just as the Provincial and Federal governments in Canada create a team approach, so too will I work hard to establish positive ties and messaging with our counterparts across the border.

The impacts from a Canadian federal policy change when it comes to municipal funding has me concerned as well. None of us know what’s going to happen during the next federal election, and I’m not here to make predictions nor pick favourites.

Based on consistent and recent polling, changes may indeed be coming. Should that trend hold, the financial forecast for all municipalities could be impacted dramatically. The potential for the elimination of the Housing Accelerator Funds, or other claw backs on infrastructure funding, has me worried.

I’m not going to debate party politics here on the stage, because I could talk about positives and negatives from a mayoral position quite easily. It is my responsibility as your mayor to give my honest assessment on the state of the city, and I’m telling you that I am deeply troubled about what you, the property taxpayers, may be facing this year and in years to come should these outside factors come to fruition.

Advocacy for Guelph residents in the provincial election is currently underway with the City’s Future in Focus: Building Guelph Together campaign. The City’s priorities are aligned with major provincial party platforms and reflect key local areas of concern as identified through the 2024 Guelph Satisfaction survey I touched upon earlier.

The three key priorities that Guelph is amplifying throughout the 2025 provincial election are for the province to:

Collaborate with municipalities to build housing for everyone;

Invest in community safety and wellbeing;

Reduce reliance on municipal property taxes to support affordability

Today, I encourage all local provincial candidates to read Future in Focus on the City so you can fully understand the needs of Guelph residents. We look forward to discussing these priorities with you. As I have with every election, I will meet with any candidate to promote and protect Guelph’s interests, and I will work with anyone elected to represent our city to get Guelph the supports it needs.

A CITY OF RESILIENCE

In a world of uncertainty, Guelph needs to be a beacon of stability and a city of resilience. We must preserve and build strong relationships with external partners, maintain stable finances that support future growth, and embrace a strategic plan that is both adaptive and responsive, yet flexible when it needs to be.

This is the City of Guelph’s mission in 2025, and I can’t do it alone. I need everyone, from all walks of life and with all the lived experiences that collectively make up the diverse fabric of our city, to play a role in fulfilling that mission. We can and we will do it.

I don’t mean to get overly spiritual, but there’s a parable in the Bible about a wise homebuilder who built a house on rock with a firm and stable foundation. And then there was a foolish homebuilder who built theirs on sand. When the storm comes, when the water rises, and the difficult times come right up to or over the doorstep, the house on sand was washed away and destroyed – yet the house built on rock was saved.

The City of Guelph is built on a solid foundation. We’re strong and united.

Not solely because of government but because of our people.

If, as a city, we are about to push through more difficult times, I couldn’t imagine doing it with anyone else. My colleagues on Council, our incredible staff, the private and non-profit home builders, the businesses, the charities, our emergency services, our heathcare workers, the young, the old, the longtime resident, or the newcomer – we’ll stand together and weather the storms. Guelph won’t back down. We’ll get through it and more than likely – just as we have in past times of struggles or storms – we’ll come out even stronger for it.

Thank you everyone for joining me this morning. I look forward to answering any questions you may have.



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