Budgets and Finances

The 2025 budget process was shaped by Council priorities outlined in the Strategic Plan. More specifically, staff were directed by the Mayor to prepare a proposed balanced 2025 annual budget based on the following:

1. The City’s annual operating budget reflect a property tax levy for agencies and boards that is separate from municipal services, prior to preparing the 2025 budgets.
2. Prepare an operating and capital budget for municipal services based on a property tax increase that is among the lowest of the other large cities in Ontario, and that the increase is no higher than 2.6%.
3. Incorporate additional investments in initiatives that will facilitate more housing construction, provide more affordable and supportive housing options, and address on-going public safety concerns in the community.
4. Prioritize repair and rehabilitation of existing City assets such as roads, parks, and other key infrastructure and begin to develop financial strategies for future infrastructure investments that will be necessary to accommodate both current and future growth.
5. Prioritize initiatives that are either specifically aligned with City Council’s 2023-2026 strategic plan or relate to core municipal responsibilities.
6. Review existing City services as necessary to identify efficiencies and potential opportunities to redirect funding from areas that do not maximize value for taxpayer dollars or are not aligned with City Council’s current 2023-2026 strategic plan, towards initiatives noted in part d above.
7. Pause the annual incremental levy increase for the Green CIP program of 0.16% for the 2025 fiscal year as the program continues to have sufficient capacity with the $400,000 currently levied on a yearly basis.
8. Prepare a report and a draft 2025 annual budget to be presented by the Mayor to Council for consideration before February 1, 2025.
9. Request that the President and CEO of Utilities Kingston prepare proposed 2025 and 2026 rate-supported operating and capital budgets for water, wastewater, natural gas and appliance rental services that align with the Utilities Kingston 2021-2025 strategic plan and applicable services agreements between the City of Kingston and Utilities Kingston, with the proposed budgets and related reports to be presented by the Mayor to Council for consideration before February 1, 2025.

Budget planning is a collaborative effort between residents, council, and city staff. 

• Resident input: Starts through community engagement to help council set our strategic priorities and service levels and continues through an annual budget engagement process, which gives residents the opportunity to provide input on the actual budget. 
• Council directives: Mayor and council provide direction on strategic priorities, service levels, and fiscal guidelines. 
• City staff: Our departments develop work plans and budgets to outline how they will achieve council priorities and support municipal programs and services.

Operating funds are transferred to reserves and reserve funds to set aside monies to fund expenditures, similar to having personal savings accounts.

Capital reserve funds are used for capital expenditures by using:

1. A pay-as-you-go method, where we take money from the reserve funds to pay for capital costs directly; or
2. Through the issuance of debt, where we borrow money to pay for the capital costs and then use the reserve funds to pay future debt principal and interest charges

Reserve and reserve funds are also used to manage unanticipated expenses and to support the City’s long-term financial stability.