Mayor proposes tax increase under 2% as inflation drives up operating costs

Windsor, Ont. -

As the rate of inflation drives prices high, municipal officials in Windsor are set to discuss 2022 finances.

On Friday, Mayor Drew Dilkens will be joined by Chief Administrative Officer Jason Reynar and Chief Financial Officer Joe Mancina to make a detailed presentation regarding the 2022 Municipal Capital and Operating Budget.

“The budget that we’re going to present to city council is far less than the commitment I made at the start of this term,” explains Dilkens. “Which was to bring in budgets at or below the rate of inflation.”

Inflation is accelerating at a pace not seen in almost two decades, with prices up 4.7 per cent in October compared to a year earlier. During the 2018 municipal election, Dilkens campaigned on keeping tax increases at or below the rate of inflation.

“I would say anything more than two per cent would be irresponsible and anything at zero would be irresponsible because we couldn’t properly run the corporation without making service cuts,” he says.

Impacts on the city’s operations are great according to Dilkens.

“We need $1.2 million more just to buy the same amount of fuel for our fleet in 2022 than we used in 2021,” he says.

According to the mayor’s office, inflationary pressures are impacting the city’s 2022 budget on a variety of essential services. Fueling up Transit Windsor buses and the city’s fleet of municipal vehicles is estimated to rise 35 per cent.

As the price for materials, parts and labour has gone up, so too have the costs. Officials say last year, escalation in construction costs was 2.6 per cent. For 2022, according to independent estimates, it’s about 7.7 per cent.

“This is not the year to add all sorts of wish list spending,” Dilkens says. “This is the year to be prudent, to be reflective on the times that we’re in with this inflationary rate and make sure that we’re only doing what’s essential.”

Electric and natural gas bills are expected to rise 4.2 per cent or $705,000 to power city facilities and buildings.

The Mayor’s Office adds municipalities all over Canada are facing rising insurance costs from private sector firms, saying Windsor needs to budget about $1.7-million more in 2022 to make insurance payments next year, about a 30 per cent increase from 2021.

“I know that the pain is out there and I want to make sure that with respect to our budget that we can operate the city efficiently and effectively but not put an undue tax burden on the residents of this city.” Dilkens says.