State of the City

Mayor Cam Guthrie – February 12, 2026.

2026 Mayor’s State of the City address: Ready, Set, Guelph

The truth is that right now Guelph is at critical juncture. We have:

• A housing crisis, decades in the making, that’s become significantly worse over the past few years;
• A mental health, addictions, and homelessness emergency that cities are ill-equipped to handle alone;
• An affordability dilemma that’s magnified by federal and provincial downloading or underfunding;
• And extreme economic uncertainty caused by an irrational trade war, vindictive tariffs, and constantly changing American foreign policy

These massive impacts on our City have little to do with Guelph itself. They may not be our fault, but they have become our responsibility.

I won’t pretend these times are easy. For many, getting by day-to-day has become more and more challenging – and we certainly cannot lose sight of their struggles. Yes, I can directly connect the dots between government downloading to local social disruption, to acute housing failures, to municipal tax pressures – but that acknowledgement alone doesn’t solve the crisis.

So, we are taking action. We face headwinds not of our making, but Guelph will not face them unprepared.

Ready, Set, Guelph.

I believe this State of the City theme is particularly appropriate right now. Over the past year – actually several years now – Guelph has been laying the foundations for our present and our future – addressing what is upon us now and getting ready for what is to come.

Now we are set – set to build upon all the great policies and frameworks that we needed to establish so our actions would have the highest and best outcomes for our residents, businesses, and community.

Ready to prepare.
Set to act.
Guelph to lead.

WE ARE READY

So much of our future success will build upon what we have done together in the past. Guelph is ready.

Of course, much of the City’s attention for the past few years has been on housing. It dominates a large portion of discussions at City Hall, and we have been taking action to address the growing crisis.

Yes, okay, I had to make some phone calls and leverage my network of contacts to politely encourage the province to ask the Canadian Mortgage and Housing Corporation to fix their incorrect housing numbers. Once the accurate numbers were used, Guelph was awarded $3.7 million from the Building Faster Fund for achieving our housing target, with 1,279 new home starts. This was the second year in a row that we met our provincial housing targets. Guelph will be using these funds to help unlock more housing.

Ontario has even acknowledged in its economic statements that its own housing projections are likely unattainable. Certainly, Guelph’s 2025 housing starts declined significantly due to economic conditions beyond our control.

We aren’t alone in this trend, though, which seems to be more of an Ontario problem than a Canada problem.

Housing starts in 2025 were down 13 per cent across the province, or down 24 per cent for single-detached dwellings. Higher construction prices and economic uncertainty concerning tariffs, jobs, and interest rates are weighing down building in Ontario.

These factors are outside the City’s control, but our planning staff and City Council have been making internal changes to greatly reduce approval times and help get houses built faster. These process improvements remove barriers when every day counts.

Although the number of housing foundations poured in Guelph dropped in 2025, developers—whether that’s private or not-for-profit—are clearly getting ready as well. Housing applications across many different stages are up. This data and the high pipeline volume indicate there is strong latent supply and developers are ready to start building once conditions stabilize.

Fortunately, the Ontario Government has been taking notice of the City’s housing intentions. In April 2025, we broke ground on the Wyndham-Wellington Water and Wastewater Capacity Improvements project to help unlock many new homes in downtown Guelph.

Policy changes are also ensuring Guelph is ready to move forward with housing. In April, Council approved the City’s Municipal Service and Financing Agreements policy to accelerate residential development.

These front-ending agreements let builders fund and construct roads, water pipes, and sewers upfront for housing projects, before the City’s fiscal capacity is available to proceed with the work. The City then repays the funds back as housing is built.

Additional dwelling units (ADUs) are a key component to helping the City build housing.

As the graphic shows, these ADUs can either be located inside the primary dwelling structure (like a basement apartment), attached to the home (like a unit above the garage), or detached completely (like a backyard cottage or tiny home).

The City has made two policy changes recently involving ADUs. First, they no longer require a development application and are instead processed through a building permit to make the process faster and less expensive.

Second, an ADU grant program – supported through the federal Housing Accelerator Fund – provides homeowners with up to $20,000 for each affordable unit added to a property and an extra $10,000 for including accessibility features.

Since most ADUs are smaller and less expensive to construct than a regular housing unit, they can contribute to the City’s affordable housing rental supply. A total of 562 ADUs have been issued building permits in Guelph during the first two reporting periods of the Housing Accelerator Fund.

WE ARE SET

Being set reflects the City’s strategic preparation, allowing Guelph to act quickly and efficiently when an opportunity or challenge appears.

Our community steps up when federal and provincial governments step back.

Talking about ADUs transitions nicely into highlighting the necessary innovations the City continues to make under its 10-year Housing Affordability Strategy. This strategy supports the city-wide 30 per cent annual affordable housing target – nearly one out of every three houses – and addresses affordability issues in the private market.

Two years ago, I stood on this stage and declared my intention to use Strong Mayor Direction to leverage underutilized City-owned lands to increase the supply of affordable housing in our community. That direction is now resulting in action.

This upcoming project is an excellent example of how the City can contribute to affordable housing in Guelph and is exactly what I had in mind when I issued my Mayoral Directive.

I am thankful the federal government awarded the City $21.4 million under the Housing Accelerator Fund to help us fast-track housing with transformative and systemic change. In fact, the federal government selected Guelph as the city where they announced the creation of this Canada-wide Fund.

Guelph has a critical need for affordable housing, which is why the City Council is boldly taking a more active role as well.

For a long time, the convention has been for the City to create opportunities for affordable housing, rather than build it. That isn’t our traditional role – but now we are changing that. My 2024 Mayoral Direction was the first step on this new City-guided housing journey.

Guelph is moving forward with plans to build and own 12 new affordable rental units in the form of three four-plexes on underutilized land on Normandy Drive and Eastview Road. The City will work with a non-profit partner, to lease and operate the three buildings starting next year.

Yes, some may believe that these unprecedented actions aren’t necessary—but I disagree. They are a vital part of our response to the housing crisis currently threatening Guelph.

Council has also endorsed proactive steps to protect affordable housing and expand the availability of rental housing in Guelph.

The City is creating two new bylaws of its own to protect renters. First is a renoviction bylaw designed to protect tenants during major renovations.

Under the bylaw, landlords must prove that renovations are so extensive and unsafe that the renters cannot stay during the work.

Second is a rental replacement bylaw that ensures the number of affordable rental units are maintained and provided at similar rents after a renovation is complete.

Additionally, the City will be assessing a new tax on homes left empty for six months or more, with the goal of encouraging owners to rent or sell unused homes so that more people can live in them.

This initiative alone is expected to impact about 50 homes—not thousands as some tried to suggest, it may generate up to $325,000 in annual revenue that will be reinvested into the City’s Affordable Housing Reserve Fund.

City Council is taking these steps in the absence of support from the provincial government. We are in a housing and homelessness crisis, so we must step up where they are not.

A recent report from the Association of Municipalities of Ontario shows that 85,000 Ontarians were homeless in 2025, growing 8 per cent from just one year earlier and nearly 50 per cent since 2021.

Even under a projected steady economic scenario, homelessness in Ontario is projected to double over the next 10 years to 177,000 without intervention. This number could possibly grow to nearly 300,000 people in an economic downturn.

I endorse the Association’s call to action to end chronic homelessness, and I stood with other Ontario Big City Mayors when we collectively asked the province to declare a state of emergency in Ontario to address homelessness caused by addictions and mental health.

There is a path forward. Here is what’s possible when different levels of government work together: Supported by the federal Housing Accelerator Fund, the City is providing $320,000 to Wyndham House to help Guelph become the first mid-sized city in Canada to end chronic youth homelessness.

These new youth beds at Wyndham build upon the many other temporary, transitional, and supportive units already open at Grace Gardens, 10 Shelldale, 65 Delhi, 128 Norfolk, and many others as this slide shows. There are over 300 beds available in and around Guelph for those who need these supports – and yes, the need is great.

Being set means showing leadership and taking decisive action. At no time is this more important for the City than during budget.

In April, I issued a Mayoral Direction to present options for lowering the City Services portion of the 2026 budget.

I asked for three budget scenarios to be presented.

The first was for a tax levy increase no more than 2.5 per cent, the second was for 3.5 per cent, and the third was for the existing 4.5 per cent already projected in the multi-year budget.

I made it clear that a 4.5 per cent levy increase was unaffordable for our city and was not a viable option – but it was to be included for comparative purposes only against the other two options.

Furthermore, I directed staff to review non-tax-supported budgets to identify opportunities to reduce the impact of increases on residents and businesses.

Finance staff were to use prioritized criteria to evaluate budgeted investments and disinvestments, which included:

• creation of new housing units
• meeting legislated requirements
• risk
• impact to the public
• an equitable lens
• and the Future Guelph Strategic Plan

I worked collaboratively with staff to achieve a realistic and responsible budget with a tax levy increase of 2.85 per cent for the City Services portion. After formally presenting this budget to City Council, the levy was amended to a final 3.36 per cent increase.

This 3.36 per cent is less than the 3.66 per cent increase for the previous 2025 year. It’s also 26 per cent lower than the 2026 forecasted increase.

This reduction didn’t just happen. It took real dedication to strive towards the ideal of affordability and countless hours of research and hard work. I continue fighting to keep Guelph affordable in unaffordable times. This final City Services number is fiscally reasonable and socially responsible, and I stand behind it.

As you can see from the chart, however – after adding in the hospital levy and the 4.4 per cent Local Boards and Shared Services portion – the total tax levy increase for 2026 is 7.87 per cent, which is slightly higher than the 2026 forecast.

If we look at budget trends over the past few years, you’ll see where the goal of affordability starts falling apart, and I am deeply concerned.

For the two years I have issued Mayoral Direction, the City Services portion of the tax levy – those items we have direct control over at the City – has decreased. Since 2021, however, the tax levy portion that funds the outside Local Boards and Shared Services has steadily increased.

I need to clear something up here: Strong Mayor Powers are not applicable to these outside boards. I can “respectfully request” they keep affordability in mind but I can’t unilaterally cut their budgets.

The largest proportional increase has been funneled to the County of Wellington’s Social Services – at a nearly 25 per cent increase – followed by the public library and Guelph Police.

The Local Boards and Shared Services have increased their total allocation of Guelph tax-supported funds from 32.4 per cent in 2019 to nearly 36 per cent in 2026.

Now let me be clear: I’m not calling out these Local Boards for bad fiscal management. In fact, there are legitimate reasons why some of these budgets are bigger. Councillors and I sit on these outside boards as well, but not with a majority position.

You see, municipalities are forced to carry unsustainable additional property tax burdens that are directly related to provincial downloading. This has to stop. This trend may not be unique to our province alone, but Ontario municipality property taxes are covering one-third of the program cost that are funded by the provincial governments elsewhere in Canada.

The consequences of further underfunding social issues to municipalities – specifically concerning mental health and homelessness – has a real human cost.

My use of Strong Mayor Powers to reduce the tax levy was essential. If we had simply accepted the 2026 budget forecast, taxes would have gone up by just over 9 per cent. And 2025 would have been over 10 per cent alone.

There is a time and place to use Strong Mayor Powers responsibly, and I will continue to issue Mayoral Directions to build this city stronger, create more housing, and reduce unnecessary delays.

So … taking all that into account … what do we do?

Do we just throw our hands up in the air and say that we are satisfied with this unsustainable direction? Are we going to continue having large tax increases like this?

The answer is no. NO.

There are many steps we will take to get these budgets under control. This isn’t an option—it’s a necessity.

As I publicly announced earlier this month, I am exploring different oversight alternatives for working with the outside Local Boards and Shared Services on their budgets.

Also, the City will continue to look internally at cost saving measures, including audits, service reviews, lean programs, continuous improvement initiatives, and more.

And one more important thing: Council absolutely cannot have new operational expenses being added at an unsustainable pace. We need to manage what we currently have—not adding and adding and adding—and I am committed to being laser-focused on this.

OK, let’s get back to housing.

There are many amazing housing projects and communities underway right now or coming online in the next few years, including the Guelph Innovation District, W.C. Wood plant redevelopment, Dolime Quarry lands, Clair-Maltby district, downtown housing, and stacked towns on Gordon Street.

To help Guelph get set to meet its aggressive provincial growth target of 208,000 residents by 2051, policy changes to encourage all types of housing developments are crucial. The City’s Community Planning Permit System (CPPS) is a perfect example of these innovative approaches.

The CPPS bylaw is already in effect for the Stone and Edinburgh Road strategic growth area, and development of the downtown Guelph CPPS is ongoing. We received a lot of feedback and final recommendations will be coming soon.

We are getting set in the downtown core to better accommodate growth there.

In April, Council passed a motion to allow for taller buildings downtown: up to 24 storeys in some locations and taller buildings in the peripheral areas. Downtown is a key growth area, and increasing building heights will create more homes faster.

As many of you probably know, the Downtown Renewal program is a massive undertaking by the City to redefine how Downtown Guelph looks, feels, and functions. Century-old pipes (many of them are clay) need to be replaced and we have a rare opportunity to rebuild the downtown even better.

This infrastructure and transportation renewal will create the foundation for future prosperity, sustainability, and well-being for the next 50 years.

Advanced utility work is underway now, with significant reconstruction starting later this year that will transform St. George’s Square as this flyover rendering shows. Though this repair work is necessary, I know that the closure of streets downtown over the next two years will be disruptive to businesses and residents. This short-term pain will lead to long-term strength.

One of the focal points of our revitalized downtown will be the new Baker Street Library.

With construction to be completed this fall, on schedule and within budget, this impressive 88,000 sq. ft. facility will feature state-of-the-art technology and interactive learning spaces that promote exploration and creativity. It’ll have books, too.

As the cornerstone of the Baker District redevelopment, this library is Canada’s first stand-alone library to achieve the Zero Carbon Building Design Standard from the Canada Green Building Council.

Although the downtown is at the beginning of a significant transformation, key retail and housing developments are still proceeding.

WE ARE GUELPH

Readying policy and setting actions are coming together in the downtown and across the city like never before and Guelph residents and businesses are going to reap the benefits this year and in the decades to come.

On time and on budget to open in fall 2026, the South End Community Centre is a 160,000 sq. ft. facility with twin ice pads, aquatic centre, double gymnasium, walking track, multi-purpose rooms, and much more.

Sports groups have been saying for many years that there haven’t been enough bookable recreation spaces in Guelph, and this modern facility will go a long way to meeting those needs. Additionally, the facility’s sustainable initiatives align with the City’s community green-energy goals.

And speaking of sustainability, the City has released a new Corporate Climate Action Plan.

Amazingly, although Guelph’s population has been steadily growing, the City’s energy use has dropped by 17 per cent since 2018 – with more than 20 per cent of that energy coming from renewal sources. During that same time, our corporate per capita emissions have fallen by 11 per cent.

One of the initiatives I learned about through my time on the Global Covenant of Mayors Organization was the Youth Climate Action Fund micro-grant program.

This Fund provides cities with a grant to support creative and innovative ideas, led by youth, to tackle climate change at the local level. The City has distributed $106,000 to these youth initiatives over two rounds, and we have submitted an application to participate in round three as well.

From a recycling education program to a bike loan project to community pollinator gardens and more, youth are getting engaged and making a real difference in Guelph.

Guelph is also a safe city. Stats Canada released their 2025 Crime Severity Index that ranked Guelph as the 6th safest city nationally and 3rd safest in Ontario – a significant improvement from its 15th ranking eight years ago. In particular, huge gains have been made in addressing human trafficking, child exploitation, and fraud.

Innovative local policing approaches are leading to positive community results.

Guelph is also fiscally sound. For the fourth straight year, S&P Global Ratings affirmed the City’s financial credit rating as AAA with a stable outlook – the highest possible rating. We will need this fiscal strength to endure harder times ahead.

I see Guelph’s economic vibrancy regularly at ribbon cuttings and business anniversary celebrations across the city—even in these challenging times of economic uncertainty. I was invited to so many of these events over the last year.

From restaurants to retail to services, entrepreneurs are thrilled to open their shops in Guelph because this is a great place to do business.

Despite all that great news in Guelph, many businesses – especially the manufacturing sector – are concerned by the uncertainty caused by American economic policies.

Last year, the City launched a new Trade and Tariff Resource Hub with information to support local businesses. Though trade is largely a federal and international issue, we can’t sit idly by. The City is collaborating with all levels of government to advocate for the protection of local jobs and ensure economic resilience. We support local.

As part of the City’s outreach efforts, I continue to visit our manufacturing businesses with Guelph’s Economic Development team to check in, support their achievements, gather data on vulnerability assessments, and keep regular communication channels open. Our factories and R&D facilities are vital to a healthy local economy, and it’s important for me and City staff to learn and listen.

Guelph is a good place to work, and it’s also a great place to play.
In 2025, Guelph Tourism invested $106,000 back into community organizations and businesses for their tourism experiences. The Guelph Gather Here brand has been making a big difference in the City’s tourism economics. Check it out.

A big tourism focus over the next year is planning for Guelph’s bicentennial celebrations in 2027. The working group has started, funds are in place, and next year the party will begin. This is Guelph’s moment to celebrate what we’ve built and recommit to protecting it.

I am absolutely thrilled that the Guelph Storm will be hosting the 2027 Memorial Cup tournament in Guelph, and I’m sure you are too. We’re ready to make this unforgettable event the centrepiece of Guelph’s bicentennial celebrations in 2027.

Tying together both tourism and local economy, I want to give a big shout out to the Downtown Guelph Business Association for running an absolutely amazing Spirit of the Season in December. Wasn’t that a great event?

Held over two weekends, the festival attracted a record numbers of visitors. It also helped raise over $34,000 for the Children’s Foundation’s “Keep Kids Fed at Home” program.

I’ve always known we live in a giving city. Guelph takes care of its own. and the Spirit of the City fundraising encouraged me to dig a little into what Guelph residents and businesses gave to charitable organizations and events in the past year.

First, I want to highlight one of the largest fundraisers. St. Joseph’s $15 million “Building Better Healthcare Campaign” has so far raised over $11.5 million towards its goal. That money is going to go a long way.

The United Way’s 85th annual campaign reflects another significant effort. Although the final numbers won’t be announced until later, I’ve been told that over $2 million has been raised. Way to go team!

Folks in Guelph have dug deep into their pockets to help out so many other amazing fundraisers as well – though let’s acknowledge that charitable giving cannot and should not substitute for government action.

Here’s a bunch of 2025 charity fundraisers, rapidfire, with their approximate funding totals:

• Black Tie Bingo – $391,000
• Beyond Borders Gala – $255,000
• Once Upon a Time Gala – $230,000
• Tour de Guelph – $226,000
• Coldest Night of the Year – $221,000
• Taste of Guelph – $200,000
• Run for the Cure – $181,000
• Royal Reach Gala – $130,000
• Happy Tails Gala – $115,000
• Salvation Army Kettles – $113,000
• Masks Off Guelph – $90,000
• Happy Trails Walk-a-Thon – $64,000
• Big Night Out Gala – $50,000
• Spirit of the Season – $34,000
• Think Pink Game – $13,000
• Santa Parade Run – $11,000

Clearly, the rallying cry to “stand together” isn’t just rhetoric. Let’s give all these organizations and the people who help fund them a big round of applause.

And, of course, one of my favourite Guelph moments of the past year is when my small 2025 budget inclusion came to fruition.

READY, SET, GUELPH!

Ready to prepare.
Set to act.
Guelph to lead.

And Guelph is indeed leading. We are ready – with the right people in the right positions who have crafted the policies and action plans to move the City forward.

We are set to build upon strong relationships with external partners, to get housing built, to maintain a strong financial position, to support those in our community who need a hand up and access to social resources.

We have the foundation. We have each other. We have no choice but to succeed.

And yet, City actions alone won’t solve these crises. There are strict limits on municipal powers, which is why there’s an urgent need for action from, and partnership with, the federal and provincial governments.

We can’t simply request it. We have to demand that provincial and federal partners step up.

We have all the puzzle pieces ready for us to put it together.

Guelph has always faced challenges by relying on our greatest strength: each other. With all the economic and social uncertainty affecting our City and all of Canada, it certainly won’t always be easy.

But the vision of Guelph as a vibrant, powerful, and compassionate City is worth fighting for – and I continue to be here, fighting alongside you.

Collectively, Council, staff, community partners—we need … no, WE MUST…

come together and take action. Through unity comes strength.

We need to continue shopping at local businesses whenever possible to keep your hard-earned money in Guelph. In particular, be sure to support downtown businesses throughout its renewal so they can stay open both during and after construction.

Advocate to upper levels of government, though your MP and MPP, about the need for them to protect Guelph most vulnerable by taking immediate and dramatic steps to solve the mental health, addictions, and homelessness crisis.

If you can, contribute your money or time, or even both, to community non-profits and charities that reach out to support our neighbours in need.

And be sure to hold City Council accountable to ensure it makes the right decisions for a City at the juncture of multiple crises bearing down all at once.

Getting ready and getting set can only take us so far. It’s time for Guelph to go, to get things done.

And I hope you’ll be joining me.