Published on May 10, 2022

Upcoming 2023 Budget Process

Proactive Collaborative Approach

Historically, City Administration prepared a proposed budget for Council consideration that was presented by the CAO in November. To respond to increasing financial pressures and in anticipation of a challenging 2023-2025 budget that may result in either significant tax increases or service level adjustments, the City will be implementing a plan of action that can proactively ensure the proposed budget is in alignment with Council direction.  

On May 2, Administration met with Council to provide information related to the City’s financial position and forecast. At this time, Administration received Council direction related to the potential proposed tax range for 2023-2025 and discussed actions required to manage tax increases (including potential service and service levels adjustments). This information helps Administration to develop a proposed budget in alignment with Council’s direction.  

Financial Forecast

If the City continues to face decreasing revenues and increasing expenses, higher than historical tax increases may be needed to maintain current Council approved services and service levels. It is not possible to maintain current services and service levels with modest tax increases. Alternatively, changes to existing Council-approved services and service levels may be inevitable. Working collaboratively, Administration and Council can make informed decisions related to any potential adjustments to any actions that may be required.  

2023-2035 Tax Requirement

To maintain current Council-approved services and service levels, not taking into consideration new asks (business cases), the City is estimating annual tax increases of 7.2 per cent in 2023, 6.2 per cent in 2024, and 3.9 per cent in 2025. During the May 2 Council meeting, Council shared that they are comfortable with a tax increase in the range of 3 to 5 per cent.  

What’s Next?

  • In making decisions about the 2023 budget, the City will be guided by Council’s Strategic Plan and our Corporate Business Plan, our obligation to meet the needs of our most vulnerable residents, and our commitment to protect both natural and built environments. 
  • Administration is reviewing how cost efficiencies, corporate adaptations and potential service level adjustments can be incorporated to reduce the initial tax requirement of 7.2, for 2023, to somewhere in the range of 3 to 5 per cent. 
  • The Proposed Financial Plan and Budget will be presented to Council in the fall. Residents and businesses will have the opportunity to provide input.

Further information will be shared as 2023 Proposed Budget meetings are set.
 


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Last edited: May 11, 2022