Windsor city councillors are looking to trim a proposed property tax increase of 3.3 per cent, accounting for more than $13.3 million in new spending in the 2019 draft budget.
Deliberations for the 2019 operating and capital budgets began on Monday.
The proposed increase would result in an additional $90 a year on the property tax bill for a home assessed at $150,000 should council approve the budget as presented.
City administration provided council with a pathway to hold the line on property taxes, but is not recommending the actions needed to achieve a 0 per cent increase pointing to steep fee increases and service cuts – in some cases services would need to be eliminated entirely to avoid a tax increase.
The budget report to council highlights its “paramount objective” of fiscal responsibility while minimizing negative impacts on services.
To that end, the report notes debt has declined from $229.4 million in 2003 to $70.6 million in 2019 and is projected to be reduced further to $41.1 million by 2023 should the city stay on its current budgetary tract.
The 2019 budget also expands the city’s capital spending plan to more than $845 million over seven years, including $119 million allocated for 2019.
Much of the money is earmarked for road and sewer projects while the Meadowbrook affordable housing project has been pegged as a $12 million item.
Much of the concern from delegations to council on Monday focused on the issues of homelessness and alleyway revitalization.
While the budget report highlights the city’s strong fiscal record, it also points to the city’s deficiencies.
The report shows city reserves are below the provincial average of holding 73 per cent of tax revenues in reserve. In Windsor, the city achieved 54 per cent between 2015 and 2017.
Currently, the city holds roughly $175 million in reserve, contrasted to the comparable City of London, which has $680 million in reserve.
Deliberations are scheduled to resume on Tuesday at Windsor City Hall following Monday’s meeting.
