City of Waterloo passes 3-year budget with plans for more sidewalk clearing, hiring planners and firefighters

The City of Waterloo passed its three-year budget on Monday.

Councillors agreed to the following tax levy increases:

• 6.14 per cent or approximately $91.00 for the average household for 2024.
• 6.34 per cent or $99.00 per householdfor 2025.
• 6.41 per cent or $107.00 per household for 2026.

The city noted tax levy rates include the base budget and operating impacts of capital and growth, both at or less than the current rate of inflation.

The budget includes new spending to improve winter sidewalk maintenance, hire more firefighters, invest in a new or expanded West End fire station, and hire more planners to respond to new provincial service standards aimed at speeding up development.

But councillors also voted to delay the start-dates for several new hires and dip into the city's winter control reserve fund to help phase in the financial impact of the sidewalk clearing all in the name of keeping the tax levy as low as possible.

"This has been the most challenging budget for the city in many, many years," Mayor Dorothy McCabe told councillors at the start of the meeting.

The passage of the budget follows approximately two months of deliberations, during which councillors reckoned with the demands of a growing population, a sizeable infrastructure deficit, pressures from inflation, concerns over rising property taxes and the increase in provincially mandated responsibilities.

Coun. Diane Freeman, the finance liaison for the city, told CBC that the provincial downloading of services over the past two years "has put significant pressures on municipal budgets including the City of Waterloo's."

Impact of Bill 109 on city

The More Homes for Everyone Act, which was passed in 2022 and also referred to as Bill 109,introduced penalties to municipalities who fail to approve site plans, zoning bylaw amendments and official plan amendments within set time-frames.

They can be forced to refund some or all of the application fees if they fail to comply.

Coun. Royce Bodaly said Monday this in particular "is a significant risk particularly in a very fast growing city like the City of Waterloo."

Asked during Monday council meeting how much money the city might have to give back if it missed one of the new provincial deadlines, senior director of integrated planning and public works Joel Cotter estimated it could be around $60,000.

The city receives more than 200 applications a year, he added.

Nonetheless, council voted to delay the start-dates of two development planners approved for 2025. It's anticipated that they would now start June 1 of that year.

Bodaly questioned the wisdom of that move given the urgency of responding to provincially mandated deadlines.

But integrated planning and public works commissioner Ron Ormson replied that two new planners already hired have relieved some of the pressure on the department.

Budget supports 'city that we want to be'

Notwithstanding the pressures on the budget brought on by Bill 109, councillors approved new spending for winter sidewalk maintenance after hearing complaints from residents during the public consultation process.

"With those improvements, we're talking about reducing our time to clear all of the city-controlled sidewalks from 72 hours down to 48 hours," Bodaly said.

In a release after council passed the budget, Freeman said the final numbers reflected community engagement and "thoughtful, responsible decision-making."

"This three year budget supports the city that we are, and the city that we want to be," Freeman said.