The City of Kitchener’s 2020 Budget at a Glance The annual budget is a detailed plan to deliver the services and programs that Kitchener residents rely on

every day, and advance the priorities identified by our community. Details about the proposed 2020

Budget and information about how your feedback can be incorporated into the budget process can be

found at kitchener.ca/budget.

Budget Overview

Operating Budget - The City’s operating budget reflects

the ongoing costs required to deliver valued programs

and services for the community. In 2020 the proposed

tax rate increase is 2.2%, which is aligned with the rate

of inflation.

Capital Budget - The capital budget helps address the

City’s asset rehabilitation and replacements needs.

Investments in the 2020-2029 Capital Budget include:

- Additional funding of $38M has been allocated to

begin to address the City’s facility infrastructure

deficit.

- Grant funding of $49.9M received from Federal

Government will be used to make important

investments in the City’s stormwater infrastructure.

- Funding from Development Charges will help fund

the expansion of a broad array of services across the city.

Capital Spending – 10-year Forecast

Property tax increase is 2.2 per cent or $24/year.

Water utilities increase is 4.4 per cent or $50/year.

Gas is increased by 1 per cent or $7/year.

Total impact - $81/year.

Alignment with Kitchener’s 2019-2022 Strategic Plan

This year’s budget is closely aligned with the 2019-2022 Strategic Plan. The plan is a commitment to

deliver on the priorities identified by Kitchener residents. For 2020, those priorities are realized

through the following proposals. Find out more about the plan at kitchener.ca/ourplan.

$172K

$ 1.1 million

$3.4 million

$ 4.6 million

$150K

Great Customer Service

$102K for providing on demand support in many Languages.

$70K allocated for the development of Customer Satisfaction Program.

People-friendly Transportation

$900K allocated starting in 2020 for protected cycling network.

$236K supporting pedestrian-first streets with Gaukel street pilot.

Environmental Leadership

$3.2M to retrofit decorative streetlights to LEDs supporting Corporate Climate Action Plan + additional investment options.

$200K to implement the Sustainable Urban Forest Strategy + additional options.

Caring Community

Investment options provided in support of the Affordable Housing Strategy.

$4.6M for the expansion of the Mill Courtland Community Centre.

Vibrant Economy

$100K for food, manufacturing, and health/med-tech industry business cases.

$50K allocated to finalize the Make It Kitchener 2.0 Strategy.

Flexibility and Options

In addition to these strategic plan investments, unallocated funding of $360K in the Operating Budget and

$3.5M in Capital Budget will provide flexibility during this year’s budget process to determine areas that

may require additional investment.

4 areas have been proposed as potential areas of investment for the available operating budget

funding. For each area, several funding level options have been provided. Detailed information about

what these proposals entail can be found at kitchener.ca/budget.

3 areas have been proposed for the available capital funding. As with the operating budget, several

funding options have been provided:

Potential Increase to Tier 2 Grants

Option A - Status Quo, Option B - $22K , Option C - $39K

Additonal Funding for Implementation Urban Forest Strategy

Option A - $50k, Option B - $100K, Option C - $200K

Initial Funding for Affordable Housing Strategy

Option A - $75K, Option B - $125K, Option C - $200K

Expanding Leisure Access Program

Option A - $0, Option B - $143K

Sustainable Funding for LoveMyHood

Option A - $150K/yr ($1.50M)

Option B - $175K/yr ($1.75M)

Option C - $200K/yr ($2.00M)

One-Time Funding for Corporate Climate Action Plan Implentation

Option A - $207K (one-time)

Option B - $472K (one-time)

Option C - $957K (one-time)

Dedicated Funding for Participatory Budgeting

Option A - $300K x 3yrs ($900K)

Option B - $400K x 3yrs ($1.2M)

Option C - $300K x 10yrs ($3M)

1

2

3

4

1

2

3

Alignment with the Long Term Financial Plan (LTFP)

The City is implementing the actions recommended in the Long Term Financial Plan. One of the actions

was to apply 60 per cent of available expiring debt room to address a $227 facilities infrastructure funding

gap. This recommended action, along with the reallocation of Federal Gas Tax funding has resulted in a

$38M investment throughout the time frame of the 10-year Capital Forecast.

Discussions will take place in 2020 to develop additonal funding strategies as the City continues to work

towards addressing this funding gap.

Investments through the Water Infrastructure Program (WIP)

The City continues to move forward with the implementation of rate increases established as part of the

Water Infrastructure Program (WIP). A 5-year rate model was approved by council in 2017 and the City

remains committed to this plan. For 2020, the rate increase proposed is less than originally forecasted

and will provide a lower overall increase this year for residents.

Investments in 2020 are focused on improving the resliency and reliability of the water infrastructure

through proactive inspections and maintenance.

2018 2019 2020 2021 2022

Rate Increase Projection from WIP 6.5% 6.5% 4.5% 4.5% 4.5%

Revised Rate Increase Projection 6.5% 6.5% 4.4% 4.5% 4.5%