New rate increases in City of Kitchener’s proposed 2025 budget

Kitchener City Hall in July 2024.

The City of Kitchener released its 2025 budget on Monday, outlining its priorities for the new year and proposed tax rate increases for residents.

According to Mayor Berry Vrbanovic, staff took the affordability crisis into account.

“This year’s initial staff proposed budget remains one of the most affordable in Ontario, while making needed investments in our infrastructure, in our core services and in the vision laid out by the community in our 2023-2026 strategic plan,” he stated in a media release.

2025 rate increases

The city said homeowners will pay $131 dollars more next year, based on a $326,000 average assessed value, and annual water consumption of 170m3. The breakdown is as follows:

• Property tax: 3.9 per cent or $49 annually
• Water utility: 4.9 per cent or $23 annually
• Sanitary sewer utility: 6.9 per cent or $41 annually
• Stormwater utility: 7.4 per cent or $18 annually

2024 rate increases

Kitchener’s 2025 rates are nearly identical to last year’s budget increases:

• Property tax: 3.9 per cent or $47 annually
• Water utility: 4.9 per cent or $21 annually
• Sanitary sewer utility: 7.1 per cent or $39 annually
• Stormwater utility: 7.4 per cent or $17 annually

The total increase for 2024 came in at $124.

City priorities

The city also outlined its priorities for 2025.

They said over the last five years facility infrastructure funding has increased by $5 million per year. For 2025, the city has allocated $6 million for repairs and rehabilitation.

The budget also sets aside $75 million to advance strategic priorities, which have been outlined in the 2023-2026 Strategic Plan. Of that, the city said $56 million will come from the provincial and federal governments.

“We have a clear vision of what we want Kitchener to be, and I’m glad to see we continue to make real progress towards that outcome,” said Scott Davey, Ward 1 councillor and chair of the finance and corporate services committee, in the release. “This year’s budget includes a lot of great examples of improvements for the citizens of today and the investments for the citizens of tomorrow.”

Resident feedback

The 2025 budget has yet to be approved and, before it does, council wants to get feedback from the community.

Residents can weigh in through a survey on the city’s website until Nov. 20.

There will also be public input session.

Budget discussions

Councillors will look closer at the proposed budget over the next month. The following days have been set aside:

• Nov. 18 – Operating budget day
• Nov. 25 – Capital budget and public input night
• Dec. 2 – Mayor’s budget proposal
• Dec. 12 – Voting on amendments
• Dec. 27 – Budget approval