As Town of Essex faces six per cent tax increase, why are so many municipalities' budgets stretched?

Town of Essex councillors have voted not to move ahead with a hiring freeze meant to tackle a six per cent tax levy increase that is currently on the table.

The vote resulted in a 4-4 split, leading to the motion put forward by Essex Mayor Sherry Bondy not going through.

When asked why the Town of Essex is facing a sizable budget increase compared to past years, Bondy pointed to decisions made by previous terms of council.

“People expect their town to have amenities in every corner,” said Bondy.

“I think, perhaps, councils in the past didn't put away enough money for some of those. For example, the previous term of Essex council, we had two years where we had a zero per cent tax increase. That's creeping up on us now.”

Meanwhile, a hiring freeze has been implemented by the City of Windsor.

A proposed tax hike of nearly 13 per cent has been reduced to around six per cent following ongoing reviews and budget deliberations.

According to a researcher with the C.D. Howe Institute, financial pressures are not unique to parts of Essex County.

“When it comes to the recent bout of inflation, certainly municipal governments buy things like everyone else and the price of the things they buy are going up,” said research officer Nicholas Dahir

Others add the increases can be attributed to factors beyond the high cost of goods.

According to Clement Nocos, director of policy and engagement for the Broadbent Institute, fewer dollars have been handed down to municipalities from upper levels of government.

“There’s a laundry list of things that municipalities take care of that affect people's everyday lives, but that all requires spending money,” said Nocos.

“You're putting more and more of these responsibilities onto already cash-grabbed cities.”

Bondy said that's exactly what's being felt in the Town of Essex.

“We’re getting less grants for certain things and less funding coming down from the province," said Bondy.

"In turn, we have to raise taxes. Then, it looks like we’re the bad guys. It’s really challenging.”

Bondy added much of Essex’s six per cent tax hike is due to mandatory expenses, including police services and contractual obligations for staff and their wages.

The budget for the Town of Essex is expected to be released to the public within the next week.