Kitchener’s 2023 budget makes key investments while staying below inflation
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
Final budget day: February 2, 2023
Visit the City of Kitchener’s council and committee calendar to find the agendas when they’re available. People interested in watching the budget meetings can do so live or on-demand.
To read the full proposed 2023 budget and take the survey, visit kitchener.ca/budget.
For more information:
Shawn Falcao
Manager, Corporate Communications
shawn.falcao@kitchener.ca
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Kitchener, Ontario
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