Despite the pandemic and the increase in costs associated with it, Windsor City Council is delivering a budget this year with a zero percent increase in property taxes.
That does not mean your property taxes will remain neutral if the value of your home or business increases, but it does mean the city will not increase the rate.
While the city was successful in its bid to secure financial aid from the provincial and federal governments, it is still on the hook for $38-million in unfunded costs associated with COVID-19. That is not just the cost of personal protective equipment. It also includes reduced or no income from Casino Windsor, the Windsor-Detroit Tunnel, and the Windsor International Airport. There is also a drop in municipal revenues.
Mayor Drew Dilkens reminds residents those are not permanent costs, and he expects Ottawa and Queen's Park to come through with additional funding later this year. Advocacy for that will start next week at the Federation of Canadian Municipalities virtual summit.
Should senior governments say no, Dilkens admitted the city will have some tough decisions to make.
"We will continue to update Council and the public about how we are managing to whittle down this $38-million on a quarterly basis," he told reporters Friday morning.
He also wanted to assure the public a zero per cent increase will not mean no new investments.
The budget includes a $2.5-million increase for operations, $3-million for agencies, boards, and committees, and $5-million for the asset management capital plan.
A drop in the education levy in Windsor of $10.5-million will fund those increases.
"I know that there will be some who would want us to cut further and lower the net impact to municipal ratepayers, while others will suggest that now is the time to make additional investments," said Dilkens. "Personally, I see both sides. I came to this council as a strong advocate for fiscal responsibility. At the same time -- I have recognized that the time comes when you need to invest to enhance public assets and invest in the amenities that a growing community needs."
Dilkens also presented a ten-year outlook for infrastructure projects in the city. By 2030, the city plans to spend $1.6-billion on maintenance and repairs while making new investments in parks, roads, sewers, active transportation, and culture.
That includes $5.5-million to reconstruct the eastbound lanes of the E.C. Row Expressway between Dominion Boulevard and Dougall Avenue, $27-million in 2023 for work on Lauzon Road and County Road 42, and $9-million for Dominion Boulevard between Northwood Street and Totten Street. Another $31-million will finish the reconstruction of Provincial Road, and over two years, work on Banwell Road will get $3-million.
"In 2021 alone, we are proposing to spend $170-million to help build our city up," Dilkens said.
The total property tax levy for this year is calculated at over $426.5-million, while the gross operating budget is $874.4-million.
Windsor's reserves last year were $216.3-million, and debt continued its downward slope to $62.7-million.
Deliberations on the new budget will start February 22.
