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Kitchener Council has approved its 2023 budget focusing on affordability with another below-inflation tax increase. Council also focused on key investments including $1 million in annual investment in parks, trails and playgrounds.
The approved tax rate increase of 4.8 per cent translates to an increase of $56 a year for the average homeowner.
Throughout the budget process, Council took a people-focused approach prioritizing affordability, supporting core services, responding to growth and investing in our community.
“Council worked hard to balance various community priorities while completing their first budget of the 2023-2026 term,” said Kitchener Mayor Berry Vrbanovic. “It reflects the community priorities identified through staff’s extensive consultation with residents and councillors’ conversations with their constituents.”
In the 2023 budget, there was $1.5 million available that Council allocated towards strategic investments in traffic calming, parks and playgrounds, free recreational programming, paving of trails and arts and culture. These investments were made in response to direct feedback from residents during the recent election and the 2023 budget input process.
Council also allocated additional capital funding for Love My Hood and RISE (Racialized and Indigenous Supports for Equity) community grants, and funding to advance the review of the City’s lodging house by-law.
“Through this budget, Council has considered affordability for our residents while building upon our historic 2022 investments towards affordable housing via the Economic Development Investment Fund and Housing for All strategy,” said Vrbanovic. “I’m grateful to work together with a Council and staff team on behalf of residents who share our desire to make our community a better place for everyone.”
Councillor Davey, as Finance and Corporate Services Committee chair, once again led the budget process. It was his 12th consecutive year at the budget helm.
“Working closely with City staff and fellow councillors, we were able to consider a wide variety of community concerns,” said Davey. “We’ve listened to these voices and have come up with a fiscally responsible plan in times of high inflation and soaring construction costs.”
The approved increases and impact on the average home are:
- A property tax increase of 4.8 per cent ($56 per year)
- A water utility increase of 4.5 per cent ($42 per year)
For more information about the 2023 budget, visit www.kitchener.ca/budget.
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The City of Kitchener has released its proposed 2023 budget, outlining a plan to support core services, respond to growth, and make investments for the community, all while delivering a property tax rate increase below the rate of inflation. The budget includes several investment options for Council to consider, and the City of Kitchener is looking for public input on which options should be prioritized.
“As we begin the budget process for our new term, it is important that the 2023 budget strikes a balance between the priorities important to our community while also recognizing the affordability challenges being experienced by many in our community. I’m happy to see that the proposed 2023 budget does just that by accounting for those needs while staying well below the inflation rate,” said Mayor Berry Vrbanovic.
For the average home in Kitchener, the proposed rate increases for the 2023 budget are:
Property taxes: 4.8 per cent or $56 annually
Water utilities (water, sanitary & stormwater): 4.5 per cent or $42 annually
As a result, the proposed 2023 budget represents a combined annual increase of $98 for the average household, based on the average assessed value of $326,000 and annual water consumption of 170m3.
“Many in our community are feeling the financial pressures of rising costs, so I’m glad that Council’s consistent focus on long-term financial planning has put us in the position to strike a balance in the proposed budget, which Council will consider beginning in January,” added Scott Davey returning Chair of the Finance & Administration Committee.
The proposed 2023 budget has three key themes:
- Supporting core services
- Responding to growth
- Investments for our community
In the proposed 2023 budget, there is $1.5 million available that council can allocate towards strategic investments. This funding is available due to electricity savings from the city-wide conversion to LED streetlights and additional investment income due to interest rate increases. City staff are looking for public input on a variety of investment options for these funds and has set up a survey on Engage Kitchener to gather community feedback. The survey closes on Tuesday, Jan. 17, and responses will be reported to city council to inform their deliberations.
“We’re facing new economic realities, including skyrocketing inflation, cost increases due to supply chain issues and volatility in fuel costs due to the war in Ukraine,” said Chief Financial Officer Jonathan Lautenbach. “Despite these challenges, staff have prepared a budget that maintains current service levels, responds to growth related pressures, and includes investment options for Council to consider that can have a meaningful impact for Kitchener’s future. The proposed increase of 4.8 per cent is higher than previous years due to factors outside of the City’s control, but still well below the current rate of inflation (7 per cent), demonstrating the balance that staff always try to achieve when setting the budget.”
The 2023 budget process involves four council sessions:
Public input night: January 9, 2023
Operating budget day: January 16, 2023
Capital budget day: January 23, 2023
The City of Kitchener uses its strategic plan and , long-term financial plan and various master plans to guide the priorities of our budget process.
The City of Kitchener has two main ways of funding things – property taxes and services that you pay for as you use them.
The City of Kitchener collects property taxes from property owners across the city. The property taxes we collect fund the Region of Waterloo, City of Kitchener and school boards. The changes you see in your tax bill are a combination of these three budgets.
The City of Kitchener uses a variety of tools to manage its finances. Two of those tools are reserve funds and debt.
Find out how the City of Kitchener builds its annual budget.
