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Budget Summary
The 2026 budget marks Guelph’s second confirmation year within the 2024–2027 multi-year budget (MYB) cycle. It reflects the City’s continued commitment to strategic investment and responsible financial planning, while carefully balancing the needs of a growing community with affordability pressures and sound fiscal stewardship.
Guelph’s 2026 Confirmed Budget includes the following tax and water utility rate increases:
Table 1 2026 Confirmed tax levy requirement
| Levy type | 2026 Forecast | 2026 Confirmed | 2027 Forecast | 2028 Forecast* | 2029 Forecast* |
| Tax levy – City services | 4.51% | 3.36% | 4.72% | 3.00% | 2.94% |
| Tax levy – Guelph General Hospital (GGH) | 0.21% | 0.11% | 0% | (0.09%) | 0% |
| Tax Levy – Local board and Shared Services | 2.72% | 4.40% | 2.76% | N/A | N/A |
| Total Tax Levy Impact | 7.44% | 7.87% | 7.48% | 2.91% | 2.94% |
*LBSS agencies will provide updated budget and forecasts during the next Multi-year budget 2028 to 2031.
The median residential property value for a single-family detached home in 2025 is $410,000. The City services and hospital levy increases for the average residential property tax bill, based on the 2025 median assessment and 2025 tax policy is estimated in table 2.
Table 2 Estimated tax impact on the median residential property
| Levy type | 2026 Forecast | 2026 Confirmed |
| 2025 annual tax – median residential property | $5,103.27 | $5,103.27 |
| Annual City service tax increase over prior period | $230.16 | $171.47 |
| Annual Local boards and shared service increase over prior period | $138.81 | $224.54 |
| Annual GGH tax increase over prior period | $10.72 | $5.61 |
The overall increase to the utility rate supported services (water, wastewater, and stormwater) for the average residential customer is outlined in table 3.
Table 3 Residential rate impacts
| Rate type | 2026 forecast ($ millions) | 2026 forecast rate impact (%) | 2026 Confirmed ($ millions) | 2026 Confirmed rate impact (%) |
|---|---|---|---|---|
| Rate – City services | $9.1 | 9.82% | $9.3 | 10.14% |
The average three-person household consumes 180 cubic meters of water in a year and has a property with an average impervious area of 188 square meters. The residential rate impacts to the average residential bill are identified in table 4.
Table 4 Average residential bill impact
| Average Residential Monthly Impact | 2026 forecast | 2026 Confirmed |
|---|---|---|
| Increase to the average residential household per month | $9.33 | $9.63 |
Guelph’s Budget Story
Municipal governments, including Guelph, are navigating increasingly complex challenges, including housing affordability, social issues, tariffs, and economic uncertainty stemming from changing global trade dynamics. In the absence of a more progressive Provincial-Municipal fiscal framework, these pressures, compounded by frequent legislative changes that have shifted more financial responsibility for growth enabling infrastructure onto property taxpayers, continue to strain the City’s ability to deliver services and invest in infrastructure in a financially sustainable way.
While the high inflation of 2021 to 2023 seems long ago, the City’s budget is still catching up with its impacts through the renewal of multi-year collective bargaining agreements. In addition, the recent tariff driven cost escalations for automotive parts continue to put pressure on expenses. Maintaining and enhancing essential services that residents and businesses rely on while striving for affordability requires difficult decisions, such as deferring capital investment, extending the service life of existing assets, and proposing service level reductions. While these are challenging conversations, this ongoing fiscal balancing act reflects the City’s commitment to meeting community needs while safeguarding our community’s long-term financial sustainability.
The 2026 budget confirmation reflects three key themes:
1. Investments and value for our community
The 2026 budget includes key investments that reflect the City’s commitment to delivering value for the community and supporting long-term growth including:
- Transit service enhancements (route 98 expansion, affordable bus pass digitization, activation of digital signs, seniors and youth ride free programs).
- Two additional paramedic shifts.
- The opening of the new South End Community Centre.
- Increased investment in seniors’ services, waste diversion, and community climate change leadership.
- Next Generation 911, bringing Guelph faster, smarter emergency response.
- Continued investment in information technology to safeguard and enhance our digital environment, while laying the foundation to support future advanced technologies.
- Major capital investment in growth enabling infrastructure, high priority asset renewal, transit electrification and expansion.
2. Responding to slower growth
In response to lower projected revenues from development charges (DCs), Ontario Building Code permits, utility rate growth, this budget responds to slower growth by:
- Deferring capital and operating investments.
- Preserving capital investments that enable city-wide growth and/or serve both growth and renewal objectives simultaneously.
- Leveraging the Municipal Service and Financing Agreements policy to move infrastructure forward if developers are ready ahead of our fiscal capacity.
3. Base budget changes
The 2026 base budget reflects a range of considerations including:
- Compensation adjustments – inflationary catch-ups for renewed collective bargaining agreements and rising costs associated with supporting the mental health and workplace safety of our frontline emergency service professionals.
- Fleet pressures – aging vehicles and increasing parts and labour costs (including tariff impacts).
- Savings from elimination of the carbon tax and administrative optimization decisions.
- Service level reductions to balance the needs of our growing community with affordability pressures. Service reductions included in the confirmed budget : reduced funding for 100 per cent renewable energy initiatives; reduction in service levels related to asset condition and maintenance, environmental policy planning and a reduction in funding for Council training. In addition, the confirmed budget included new and increased fees and/or fee hours for finance, parking and solid waste services.
Key takeaways
Risks and considerations
- After many years of detailed budget analysis and baseline adjustments, the budget is tighter than ever, and there is less capacity to absorb unplanned in-year impacts.
- Low contingency reserve balances increase the City’s vulnerability and decrease flexibility to phase-in new pressures.
- Timing uncertainty for recovery of development activity and the related revenue and reserve impacts including tax assessment growth which is at risk of being lower than the budgeted assumption for 2026.
- Continued growth revenue uncertainty from frequent legislative changes and increasing complexity of administering development charge collections from frequent changes.
- Deferred capital state of good repair work continues to put pressure on operating budget through increased maintenance costs.
- Uncertainty around the world: tariffs, conflicts, and shifting geopolitical alliances are driving some costs up and are in some cases diverting staff capacity from the delivery of core municipal services.
Opportunities
- Continued strategic approach to grant management, pursuing all opportunities offered by the federal and provincial governments.
- Ongoing engagement in strategic advocacy with federal and provincial governments to highlight challenges and promote high impact investments they can make in municipal services.
- Continue to leverage prioritization criteria to make data driven budget recommendations to Mayor & Council.
Future Guelph Strategic Plan alignment
Implementation of the Future Guelph Strategic Plan remained an important factor in determining priorities for the 2026 budget update. However, as the City balances progress toward Council’s objectives with affordability pressures, the pace of implementation in some areas continues to be slowed. Similar to the 2025 confirmed budget, further prioritization of initiatives within the Future Guelph Strategic Plan occurred and focused on areas of the plan tied to housing, affordability, and core infrastructure renewal.
The following provides more details related to investments and impacted initiatives as part of the 2026 budget confirmation update:
Foundations
- Supporting staff wellness through investment in occupational health and safety.
- Maintaining investments in core information technology renewal to support accountability through improved cyber-security, data-driven decision making, and process efficiencies. However, investments to modernize privacy and information management have been delayed.
- Funds for Advisory Committees of Council reimbursements and training are included to support City governance.
- Continuing to prioritize infrastructure investment as part of the capital budget update. Assets associated with higher risks and those directly associated with new housing development were maintained, while others were deferred out of the 2026 to 2028 period due to low DC collections. As the asset management backlog continues to be a challenge, service interruptions resulting from asset condition may occur more frequently.
- Maintaining existing investments in the implementation of the equity lens, but a planned expansion was shifted to a future year.
- Continued focus on pursuing external funding opportunities (grants) to offset financial pressures and deliver on priorities within the Strategic Plan.
City Building
- Investment in policy and technology initiatives that support housing and infrastructure and help enable new housing starts continue to be prioritized for 2026. This includes an increase to the affordable housing reserve transfer, the upgrade of the biosolids facility at the Water Resource Recovery Centre, Verney Booster Pumping Station upgrades, and the reconstruction of Wyndham Street North which will support growth in the downtown.
- Implementation of the Recreation and Trail Master Plans remains slowed as part of capital prioritization, but an increase in City investment for the community-led, City-supported Guelph to Goderich Trail enhancements has been added.
- The construction of the Baker District Library and Parkade and the South End Community Centre are on track and expected to open in late 2026.
- Taking a balanced approach to Transportation System investments – while advancing the objective of “making it easier to get around” this budget prioritizes transit system investments while slowing cycling and active transportation programs of work. Transit investments in 2026 include implementation of the Guelph Transit Future Ready Action Plan through Route 98 – Speedvale enhancements beginning in November 2026; digitization of subsidy applications which will help streamline the process for the affordable bus pass; the seniors and youth ride free programs piloted in 2025 have been made permanent; and digital signs approved through previous capital budgets will be activated.
Environment
- The City continues to invest in climate adaptation and mitigation, including major investment in the Guelph Transit and Fleet Services facility that enables continued electrification and expansion of the transit fleet and a new investment for community climate leadership. However, capital funding that was dedicated to support other City corporate energy projects has been eliminated.
- Investment in stormwater management is focused on the highest risk areas across the city such as the Exhibition Park neighbourhood. The Exhibition Park Neighbourhood Infrastructure Improvements Program is a body of work that will address aging water, sanitary, and stormwater infrastructure and will upsize undersized watermain and sanitary sewers to support growth. It will also add stormwater infrastructure to alleviate localized flooding at and around the intersection of Division and Exhibition Street. The program is being implemented in nine phases to deliver the full solution. Construction for Phase 1 will begin in 2026, with funding for Phase 2 construction and Phase 3 design also included in the 2026 budget. This program is expected to continue throughout the full 10-year forecast.
People and Economy
- There are continued investments in emergency services to support the City in meeting its response times with two additional paramedic shifts and the city-wide implementation of the provincially mandated Next Generation 911 dispatch system.
- Continued progress towards implementation of the Downtown Infrastructure Renewal Plan with construction beginning on Wyndham Street North and design work beginning on Macdonnell Street Reconstruction and Macdonnell Bridge and Allan’s Structure beginning in 2026.
- Renewed and expanded Community Benefit agreements to enhance services for seniors, waste reduction, and supports for vulnerable individuals and businesses.
Background
The 2024-2027 multi-year budget (MYB) was the City’s first four-year budget and it was built to advance the objectives of the Future Guelph Strategic Plan. The Municipal Act requires that if a municipality passes a MYB, they must “readopt” the budget for every second or subsequent year, either in the year that the budget applies, or in the preceding year. The budget confirmation process, which includes reviewing, updating, and confirming the budget, is the mechanism for readoption in the City’s Budget Policy.
The City’s budget process is separated into two parts, with the first part focused on the City services budget (including consideration of the hospital levy) in November 2025, and the second part focused on the LBSS budgets in February 2026. The 2026 budget confirmation process concluded on February 4th, 2026 with Council approval of the LBSS budgets.
In November 2023, Guelph’s 2026 budget was initially approved with a tax levy increase for City Services totaling of 5.90 per cent compared to 2025. The 2026 budget forecast was updated through the 2025 budget confirmation process, and at that time, Guelph’s 2026 City services tax-supported budget increase was forecast at 4.51 per cent over 2025. The hospital levy of 0.21 per cent was reserve funded in both 2024 and 2025 and therefore the tax levy impact was proposed to be realized in 2026.
On April 1, 2025, Mayor Guthrie issued a Mayoral Direction asking staff to prepare a budget, for presentation to the Mayor, with a City services property tax impact of no more than 2.5 per cent, highlighting what must be removed to get to that target, and also outlining what would be added back to get to a 3.5 or the existing 4.5 per cent tax levy impact.
Through the 2026 budget update process, City staff have:
- Reviewed and updated base budget/inflationary pressures for changes that occurred since the 2026 forecast was developed.
- Reviewed all operating impacts from capital to identify savings opportunities.
- Reviewed growth and service enhancement investments included in the 2026 forecast in accordance with the budget prioritization criteria.
- Developed and presented the Mayor with options for consideration to reduce the tax levy through service reductions.
- Updated DC collection assumptions and made corresponding updates to the capital budget and the debt strategy to maintain a fully funded capital budget and forecast.
We invite you to visit the rest of the pages on the 2026 confirmed budget website to dive into the details.
2026 forecasted budget to confirmed budget
Tax-supported services
Below is an overview of the 2026 budget confirmation process for tax-supported services:
- The Mayor’s draft budget update was released on Oct 16, 2025 with a proposed City services levy impact of 3.17 per cent
- On November 13, 2025 the Mayor’s proposed 2026 budget update was released and included eleven changes from the draft.
- On November 26, 2025, Council considered amendments to the Mayor’s proposed budget and a total of 5 amendments were approved by Council.
- On December 16, 2025, the Mayor amended the 2026 budget by exercising strong mayor powers under the Municipal Act.
- On January 22, 2026, the LBSS budget materials were released. Council considered these budgets during a special budget meeting on February 4, 2026, and approved the budgets as presented.
A concise overview of each tax-supported budget update is outlined below
The Mayor’s draft budget was prepared in alignment with the Mayoral budget Direction 2025-B7, with the objectives of balancing community affordability with the investment needed to maintain core service delivery in a growing city and advancing the Future Guelph Strategic Plan. The budget updates fall into the investment categories listed below.
Table 5 Mayor’s Draft 2026 City services budget update – released October 16, 2025
| Draft budget | 2026 net requirement $ | 2026 tax levy impact % |
|---|---|---|
| Forecasted net tax impact for 2026(from 2025 budget confirmation process) | 15,818,752 | 4.51% |
| Base/inflationary | 670,396 | 0.19% |
| Operating impacts from capital | (1,394,064) | (0.40%) |
| Growth | (240,904) | (0.07%) |
| Service enhancement | (17,563) | (0.01%) |
| Service reductions | (3,000,678) | (0.85%) |
| Mayor Budget Enhancements | 575,681 | 0.16% |
| Council respectful requests | (1,268,867) | (0.36%) |
| Capital funding | – | 0.00% |
| Mayor’s Draft 2026 City services budget update | 11,142,753 | 3.17% |
The Mayor’s proposed budget, released on Nov 13, included several budget adjustments that reduced the City service portion of tax levy to 2.85 per cent, providing enhanced value while maintaining affordability for residents and businesses.
Table 6 Mayor’s proposed 2026 City Services budget update – November 13, 2025
| Proposed budget | 2026 budget update ($) | 2026 tax levy impact |
|---|---|---|
| Draft 2026 Budget Update Net of Assessment Growth Revenue (released October 16, 2025) | 11,142,753 | 3.17% |
| Add: funding for Guelph bi-centennial | 150,000 | 0.04% |
| Add: funding for termite control | 60,000 | 0.02% |
| Add: funding for market square, culture and civic events | 65,000 | 0.02% |
| Add: funding for Park Steward program | 25,000 | 0.01% |
| Add: funding for museum and cultural programming | 102,076 | 0.03% |
| Add: funding for the Guelph-Wellington Ontario Health Team physician recruitment initiative (2026 and 2027 commitment) | 45,000 | 0.01% |
| Deferral of Transit route 98 enhancements to 2027 | (1,054,774) | (0.30%) |
| Phase-in of new By-law Officers over 2026 and 2027 | (101,416) | (0.03%) |
| Addition of Vacant Home Tax with net zero tax levy impact (revenue of $600,000, expense of $275,000, transfer to affordable housing reserve (119) of $325,000) | 0 | 0.00% |
| Development of a renoviction and rental replacement by-law (estimate underway) funded from Affordable Housing reserve (119) | 0 | 0.00% |
| Additional assessment growth revenue | (415,220) | (0.12%) |
| Mayor’s 2026 Proposed Budget – City Services | 10,018,419 | 2.85% |
On November 26, 2025, Council considered amendments to the Mayor’s proposed budget. The amendments approved by Council are outlined in Table 7.
Table 7 2026 City services amendments – November 26, 2025
| Budget amendments | 2026 net requirement $ | 2026 tax levy impact % |
|---|---|---|
| Mayor’s proposed 2026 City Services budget update | 10,018,419 | 2.85% |
| Add: funding for daytime space, focusing on the weighted criteria included in the respected proposal | 850,000 | 0.24% |
| Add: funding for transfer to 100 RE reserve | 250,000 | 0.07% |
| Add: funding for Guelph bi-centennial | 47,000 | 0.01% |
| Add: funding to support Transit route 98 enhancements effective Nov 1st, 2026 | 642,235 | 0.18% |
| 2026 confirmed City services budget | 11,807,654 | 3.36% |
One amendment was approved by Council to reduce the hospital levy by half, to $375,000 for 2026, with the 2026 contribution being provided to the hospital over 2026 and 2027.
Table 8 2026 Guelph General Hospital Levy – November 26, 2025
| Budget amendments | 2026 net requirement $ | 2026 tax levy impact % |
|---|---|---|
| Mayor’s proposed 2026 City Services budget update | 750,000 | 0.21% |
| Reduce: Guelph general hospital levy | (375,000) | (0.11%) |
| 2026 Confirmed Guelph General Hospital (GGH) | 375,000 | 0.11% |
For further details on the Council amendments and respectful request impacts on future years’ budgets, please refer to budget Council meeting on November 26th 2025. Materials are posted on the City’s Council and Committee Meetings website.
The Mayor exercised Strong Mayor powers and issued a Mayoral Decision to make amendments to the 2026 budget on December 16, 2025. These changes include an adjustment to add back snow clearing for bike lanes, with offsetting decreases to bylaw enforcement and renewable energy funding as well as a transfer from the Environment and Utility reserve (198).
Table 9 2026 City services amendments – December 16, 2025
| Budget amendments | 2026 net requirement $ | 2026 tax levy impact % |
|---|---|---|
| 2026 confirmed City services budget | 11,807,654 | 3.36% |
| Add: Reinstating snow removal services for on-street bike lanes of $650,000 | 650,000 | 0.19% |
| One time funding from the Environment and Utility Contingency reserve (198) in 2026 for snow removal services for on-street bike lanes | (300,882) | (0.09%) |
| Reduce: funding for transfer to 100 RE reserve | (250,000) | (0.07%) |
| Reduce: Funding for addition of two by-law officers including all associated operating expenses | (99,117) | (0.03%) |
| 2026 confirmed City services budget | 11,807,654 | 3.36% |
On February 4, 2026, LBSS agencies presented their 2026 budget update for Council approval. Council approved the updated budgets with a net tax levy increase of 4.40 per cent.
Table 10 2026 LBSS agencies budget update – February 4, 2026
| Budget Update | 2026 net requirement $ | 2026 tax levy impact % |
|---|---|---|
| Adopted net tax impact | 9,561,834 | 2.72% |
| Guelph Police Services | 1,984,340 | 0.57% |
| County of Wellington | 3,804,807 | 1.08% |
| Guelph Public Library | 77,484 | 0.02% |
| Wellington-Dufferin-Guelph Public Health | 34,762 | 0.01% |
| The Elliott Community | (4,668) | 0.00% |
| 2026 Confirmed LBSS budget | 15,458,560 | 4.40% |
Council confirmed the 2026 City services budget, lowering the tax levy impact to 3.36 per cent, and reducing the dedicated hospital levy to 0.11 per cent. Together with the LBSS levy impact of 4.40 per cent, the 2026 budget translates to an annual increase of $401.62 based on the 2025 median residential property assessment for a single detached home based on 2025 property tax policy. Of that amount, $171.47 supports City services, $224.54 supports LBSS and $5.61 supports the hospital.
Table 11 2026 total tax-supported confirmed budget
| Confirmed budget | City services $ | City services tax levy impact % | LBSS $ | LBSS tax levy impact % | Total $ | Total % |
|---|---|---|---|---|---|---|
| Base budget | 228,653,612 | 0.00% | 122,451,541 | 0.00% | 351,105,153 | 0.00% |
| Confirmed budget increase | 14,928,139 | 4.25% | 16,995,515 | 4.84% | 31,923,654 | 7.36% |
| Total adopted property tax levy and payment in lieu of taxes | 243,581,751 | 4.25% | 139,447,056 | 4.84% | 383,028,807 | 7.36% |
| Assessment growth revenue | (3,120,485) | (0.89%) | (1,536,955) | (0.44%) | (4,657,440) | (1.33%) |
| Hospital Levy | 375,000 | 0.11% | – | – | 375,000 | 0.11% |
| Guelph’s total confirmed 2026 net tax impact | 12,182,654 | 3.47% | 15,458,560 | 4.40% | 27,641,214 | 7.87% |
Capital budget
Tables 12 through 15 identify the changes made to the 2026 capital budget through the various stages of the 2026 budget confirmation process by program of work.
The capital budget is presented by program of work, which categorizes investment allocations by service type. The adjustments to the draft budget are summarized as follows.
Table 12 Mayor’s Draft 2026 City services capital budget update – October 16, 2025
| Draft budget | City services ($) |
|---|---|
| 2026 forecasted City services capital budget | 393,586,863 |
| Corporate Facilities, Public Works and By-Law | (871,200) |
| Corporate Plans, Programs and Technology | (8,076,400) |
| Culture and Recreation | (1,987,300) |
| Emergency Services | (4,573,400) |
| Parking and Transit Services | 48,171,448 |
| Parks and Open Spaces | (7,503,690) |
| Solid Waste Services | 398,666 |
| Transportation Network | (27,238,040) |
| Water Management | (25,466,050) |
| Mayor’s Draft 2026 City services budget update | 366,440,897 |
Council amended the Mayor’s proposed capital budget on November 26, 2025.
Table 13 2026 City Services capital amendments – November 26, 2025
| Adopted budget | City services ($) |
|---|---|
| Mayor’s Proposed 2026 City services capital budget | 366,440,897 |
| Corporate Plans, Programs and Technology – GG0261 100RE initiatives | 250,000 |
| 2026 Confirmed City services capital budget | 366,690,897 |
On December 16, 2025, the Mayor amended the 2026 capital budget by exercising the “in-year amendment process” for strong mayor budget powers under the Municipal Act.
Table 14 2026 City Services capital amendments – December 16, 2025
| Re-adopted budget | City services ($) |
|---|---|
| 2026 Confirmed City services capital budget | 366,690,897 |
| Corporate Plans, Programs and Technology – GG0261 100RE initiatives | (250,000) |
| 2026 Confirmed City services capital budget | 366,440,897 |
LBSS agencies adjustments to forecasted 2026 capital budget included in the 2026 confirmed budget.
Table 15 2026 LBSS agencies budget update – February 4, 2026
| Confirmed budget | City services ($) |
|---|---|
| 2026 Confirmed City services capital budget | 366,440,897 |
| Local boards and shared services capital budget – Guelph Police Services | 4,434,300 |
| Local boards and shared services capital budget – Guelph Public Library | 300,000 |
| Guelph’s total confirmed 2026 capital budget | 371,175,197 |
Non-tax-supported services
Tables 16 and 17 identify the gross changes made to the non-tax-supported 2026 City services forecasted budget through the various stages of the 2026 budget confirmation process.
Table 16 Mayor’s Draft 2026 City Services gross expense non-tax-supported budget update – October 16, 2025
| Draft Budget | City services ($) |
|---|---|
| Forecasted non-tax-supported budget | 122,792,475 |
| Ontario Building Code | (485,172) |
| Stormwater | (150,197) |
| Water | 3,532,892 |
| Wastewater | (3,537,342) |
| Parking | 300,000 |
| Court Services | 1,680,630 |
| Draft 2026 non-tax-supported budget | 124,133,286 |
On December 16, 2025, the Mayoral Decision approved a budget amendment removing the addition of two By-law Officers and all associated operating expenses. This amendment results in a reduction of parking service chargeback totaling $382,320. The confirmed 2026 gross non-tax budget is approved at $123,750,966.
Table 17 2026 LBSS agencies non-tax supported budget update – February 04, 2026
| Description | City services ($) |
|---|---|
| 2026 Confirmed– non-tax-supported City Services | 123,750,966 |
| Local boards and shared services non-tax (Grand River Conversation Authority, total budget) | 1,913,400 |
| Guelph’s total 2026 Confirmed gross non-tax supported budget | 125,664,366 |
| 2026 Confirmed Budget |
|---|
| Council reports |
| Budget board |
Related pages
City budget
Previous annual budgets
Budget manual
Budget Policy
Watch and listen
Mayoral direction
Mayoral direction response from staff
Mayoral decision – Budget Amendment
Printable 2026 Budget Update – City Services
Printable 2026 Budget Update – LBSS
Latest updates
Timeline
October 16: Mayor Cam Guthrie’s draft 2026 Budget Update Released
October 29: Special Council – 2026 Budget Update
November 18: Special Council – 2026 Budget public delegations
November 26: Special Council – 2026 Budget amendments
December 17: Special Council – 2026 Budget local boards and shared services