Budget overview

This is budget has the lowest combined household impact in a decade, following our policy of increases at or below the two-year average of inflation. To fully explain the context of our 2021 budget, we need to talk about the past, present and future.

Looking for more detail? Read our full budget report to find out about the City's finances in 2021.

PAST - Kitchener was well-prepared for this challenging budget year

The City of Kitchener has a long track-record of responsible fiscal management, resulting from strong Council financial stewardship and prudent decision-making. Over the past decade, we have prepared the city for challenging financial times by:

• Paying down debt
• Building up reserves
• Ensuring that taxes remain affordable and increases are consistently within the rate of inflation
• Reducing reliance on unsustainable sources of revenue within the operating budget

As a result, we are in a better position than many other municipalities to weather this storm without resorting to drastic cuts to valued city services.

PRESENT - Kitchener took immediate action when the pandemic began

When the pandemic began in March 2020, Kitchener took immediate action to exercise financial restraint and offset the drastic financial impacts of COVID-19. We:

• Placed approximately 900 temporary staff (43% of workforce) on unpaid declared emergency leave
• Deferred $21 million of capital spending to address cash flow concerns
• Returned $1.3 million in capital funding to the operating budget to address operating-related shortfalls
• Reduced overtime to the extent possible and reallocated staff to support the delivery of critical services
• Froze discretionary spending, resulting in $1.1 million in savings
• Required staff to fully utilize vacation balances to avoid additional staffing related measures
• Planned to use stabilization reserves to offset projected deficits

FUTURE - Kitchener is making intentional and balanced choices

Kitchener is making balanced, intentional choices about the 2021 budget that are possible thanks to many years of fiscal prudence and responsible decision-making. Unlike some municipalities in Ontario, we have made the conscious decision not to cut valued community services when they are most needed. We are also focusing on demonstrating restraint on behalf of all members of the community while providing additional supports to the citizens who need it the most. This budget allows us to:

• Respect our taxpayers by having the lowest proposed annual impact to the homeowner ($34 inclusive of tax, water, sewer, storm and natural gas rate changes) in the past decade
• Maintain highly valued community programs and services – a priority for Kitchener citizens based on consistent feedback
• Focus targeted financial support on our most vulnerable citizens by investing in resources to support business recovery, promote equity, diversity and inclusion and prioritize affordable housing
• Continue to advance our strategic and community goals