Budget Gaps, Tax Levy, CTS Closure - City Council Meeting - 06 May 26

Council approved the 2026 final tax levy and reviewed a long-term financial outlook that projects a $5.4 million budget gap in 2027, with staff cautioning the figure could rise. Members also approved up to $350,000 in emergency funding tied to the planned closure of Kingston’s Consumption and Treatment Services site at 661 Montreal Street, and backed a motion calling on the province to update accessibility standards and provide municipalities with funding to meet them. The meeting also focused on development-charge shortfalls, asset reviews, and the city’s growing infrastructure pressures.

Topics Discussed

FISCAL OUTLOOK AND TAX LEVY: Staff presented a long-term financial outlook covering the next 10 to 15 years. Chief Financial Officer Desiree Kennedy said the city faces a projected $5.4 million budget gap for 2027, adding that “it’s probably a little bit higher than that.” Staff also reported a $19 million development-charge shortfall across 2024 and 2025 because of changes to payment timing. Council approved the 2026 final tax levy and rates. Discussion also touched on the city’s five-year capital plan and debt pressures, with one councillor noting council had once tried to avoid crossing “the 500 million dollar threshold” and saying the current discussion “concerns me.”

CONSUMPTION AND TREATMENT SERVICES CLOSURE: Council debated the provincial plan to close the Integrated Care Hub’s Consumption and Treatment Services site at 661 Montreal Street by Sept. 30, 2026, and replace it with a HART Hub model. Councillor Toso said the issue “touches upon a real challenge that some of more vulnerable members of the community are facing.” Councillor Osterhoff said closures of similar sites in other municipalities “has led to an increase in overdoses” and “increased emergency room visits.” Council approved up to $350,000 from the working fund reserve for community pilot projects intended to help bridge service gaps. An amendment also passed stating the city’s preference for maintaining both harm-reduction and recovery services.

ASSET RATIONALIZATION AND REVENUE: Staff said the city is reviewing its assets and leased properties as it looks for new revenue sources. Kennedy said, “Our focus is not going to be looking at community facilities… centres, arenas, those types of things,” and said the review would instead begin with properties where the city has commercial leases. She also said staff would examine whether those assets are generating an appropriate return, asking “are we getting the return we should be for those assets.” Council also discussed the city’s investments in Utilities Kingston and whether some holdings could produce stronger returns or free up capital for infrastructure needs.

INFRASTRUCTURE AND GROWTH PRESSURES: Staff said municipal infrastructure needs continue to outpace available funding. Mr. Fowler told council, “We know we’re short about 30 million, probably a little bit higher than that just on the municipal assets.” Staff also reported that winter operations were already deep into their annual budget and that fuel costs were running about $150,000 over budget per month. Council discussed the need to balance cost containment with new revenue tools, while maintaining the 1 per cent capital levy to help offset future capital costs.

ACCESSIBILITY STANDARDS: Council passed a motion urging the Ontario government to act after missing the 2025 deadline for a fully accessible province under the Accessibility for Ontarians with Disabilities Act. Rich Donovan told council it is “near certainty” the goal of an accessible Ontario by 2025 would pass with accessibility “in crisis.” In support of the motion, a councillor said, “Accessibility without resources is just words on a paper,” and argued the province must update standards, provide financial and technical support, and resume the review cycle required by law.

Motions

Passed: - Report 41, Clause 2: 2026 final tax levy and tax rates - Report 42, Clause 1: Financial overview and fiscal outlook - Amendment to Report 42, Clause 2: Tracking provincial/federal downloading costs - Report 43: Tax write-offs pursuant to the Municipal Act - Report 44: Kingston Consumption and Treatment Services response and funding - Report 46: 2061 Joyceville Road Official Plan and zoning amendment - Motion regarding provincial accessibility standards - Bylaws 1-7 and 9: Third reading

Attendees

The following members were listed as present: - Mayor - Deputy Mayor - Councillor Glenn - Councillor Stephen - Councillor Toso - Councillor Amos - Councillor Oosterhof - Councillor McLaren - Councillor Tanney - Councillor Schaepe - Councillor Sanek - Councillor Candon