Budget confirms strategic investments, service adjustments, and measures to manage slower growth
Guelph, Ont., November 26, 2025 – Today, Mayor Guthrie and City Council considered amendments to the proposed 2026 budget. After reviewing and voting on each amendment, Council closed the amendment period, and the Mayor confirmed he will not veto any of the amendments. This means the 2026 City services budget is now confirmed, with a tax levy impact of 3.36 per cent, or $171.47 annually for the median single-family detached home. In addition, Council confirmed a special hospital levy totaling $375,000 or 0.11 per cent.
“At the beginning of this process, I reduced the proposed tax levy impact from 4.51 per cent to 2.85 per cent. Council has amended the budget by adding daytime space for people in need, the enhanced transit route 98, initiatives in 100 percent renewable energy, and increased bicentennial funding. I believe these further investments of 0.51 percent provide great value to the community, and I’m thankful for Council working collaboratively to complete the City services portion of the budget for 2026,” says Mayor Guthrie.
Key themes of the 2026 confirmed budget
There are three key themes in the 2026 budget which reflect the City’s commitment to balancing community priorities with financial responsibility.
- Investments and value for our community
The 2026 budget prioritizes long-term growth and quality of life through:
- Transit improvements: route 98 enhancements (improved frequency and additional stops), affordable bus pass digitization, digital real-time signs, and making permanent the free rides for seniors and youth program.
- Community and Affordable Housing: leveraging the final year of the Housing Accelerator Grant funding, maintaining the Welcoming Streets program, and new investments in affordable housing funding and a daytime drop-in space for people in need.
- Emergency services: phasing in two new paramedic shifts and delivering Next Generation 911 dispatch services for faster response.
- Community spaces and celebrations: opening the South End Community Centre, expanding seniors’ services and including funding for Guelph’s 2027 bicentennial celebration.
- Sustainability and environmental stewardship: new investment in waste diversion, climate leadership, and monitoring and implementing termite control while maintaining the Park Steward program.
- Major capital projects: advancing the Guelph Transit and Fleet Services Facility to enable transit expansion and electrification ($184.6M). Upgrading and upsizing our wastewater biosolids and treatment infrastructure to enable housing growth while improving efficiency and service continuity ($62.5M). The Downtown Infrastructure Renewal Program kicks off with the reconstruction of Wyndham Street, which will replace century-old sewers, pipes, and watermains — critical renewal of aging infrastructure while also up-sizing servicing for future growth ($21.7M).
- Technology: modernizing the City’s core systems with a focus on improved resident and business experience as well as optimizing business processes – elevating better access to reliable data across the organization.
- Responding to slower growth
With lower revenues from development charges, permits, and utilities, this budget:
- Prioritized and preserved capital projects that enable city-wide growth or combine critical renewal in a priority growth area.
- Deferred capital projects with more localized growth outcomes, acknowledging reliance on a new program that enables developers to advance infrastructure in certain areas if they are ready ahead of the City’s financial capacity and capital plan.
- Right-sized operating budget investment based upon the changing development application and building permit types and volumes.
- Base budget changes
This budget also incorporates several base budget inflationary adjustments including:
- Compensation updates from renewed collective agreements and rising expenses to support the mental health and safety of frontline emergency service staff.
- Addressing higher maintenance costs from aging facilities and vehicles compounded by tariff-driven escalations.
- Incorporating budget savings from carbon tax elimination and City-led energy reduction efforts.
- Incorporating efficiency savings from ongoing performance optimization, continuous improvement projects and administrative reviews.
- New and/or increased fees for finance, parking, and solid waste services.
- Service level reductions to balance affordability, including:
- Reduced funding for renewable energy initiatives.
- Removal of winter maintenance for on-street bike lanes.
- Lower service levels for corporate asset maintenance, environmental planning, and Council training.
“This budget demonstrates a measured balance between addressing challenging economic and legislative conditions while continuing to invest in critical community services and capital infrastructure that will fuel our city’s growth” said Tara Baker, chief administrative officer. “Council has heard from many in the community since the budget was first released on October 16, and I’m proud of the transparent and responsive process that our staff team delivered, ensuring our elected officials were prepared to navigate important budget investment decisions.”
Next Steps
The Local Boards and Shared Services (LBSS) will present their budgets at a special Council meeting on February 4 at 9:00 a.m. Once these presentations are complete and the budgets are approved, the final net tax levy impact for 2026 will be known.
All final budget documents will be available on guelph.ca/budget in late February after the LBSS budget approval.
Media Contacts
Strategic Communications
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City of Guelph