Windsor tax levy increase for 2025 could be highest in 20 years, says mayor

Tax rate spike? The tax rate for the City of Windsor's operating budget next year may see its highest spike in two decades. Sanjay Maru reports.

After years of keeping tax increases below the rate of inflation, Windsor may be facing its most challenging budget year yet.

During Monday’s Windsor city council meeting, Mayor Drew Dilkens said maintaining service levels with the current operating budget is no longer feasible — a significant tax levy increase will be necessary.

"It’s fair to say that it’s higher than we’ve seen in the past 20 years," Dilkens said.

The primary budget pressures heading into 2025 are driven by inflation and contractual obligations, such as salary, wage and benefit increases for city staff, including police and fire services, Dilkens said.

In response, the city is taking a new approach to prioritizing its billion-dollar municipal budget.

Windsor’s 10 councillors will be divided into three committees: one group of four and two groups of three.

Each committee will be tasked with recommending adjustments in specific budget areas. The largest group will review corporate and community services.

"That’s the biggest area that a commissioner has responsibility for — so we put four members of council," Dilkens said.

The goal of the committees is to identify potential savings, service cuts, or operational efficiencies to help mitigate budget challenges.

Dilkens said the idea behind the committees is to distribute the workload.

"It’s a pathway that will divide the workload and allow council to go very deep down to the base budget level and have a conversation about how to make recommendations to all of council, which we’ll consider collectively during budget deliberations," Dilkens said.

Not all councillors agree with the new process.

"I’d much rather prefer being in a committee of the whole, rather than three separate ones, so I can hear everyone’s ideas, particularly when it relates to budget matters," said Coun. Fred Francis.

The changes follow updates to Ontario’s Municipal Act last year, which gave strong mayors — including Dilkens — the power to veto budget amendments made by councillors.

However, Dilkens chose not to use his veto power last year.

The city ultimately approved a 2024 tax levy increase of 3.91 per cent.

As for 2025, Francis said residents could be in for a difficult year.

"I’ve spent the better part of a month trying to find out what that increase is — and all I hear are whispers from administration saying it’s going to be bad," Francis said.

When asked if the tax increase could hit double digits, Dilkens said service reductions are more likely.

"We’ll find the cuts. So I’m not going to put that out there that we’re looking at double digits," he said. "Let’s look at the services we’re delivering and see if there’s a more efficient and effective way to do it."

Dilkens said the powers granted to him under the Municipal Act allow him to appoint the chairperson and members of each budget committee.

Francis questioned whether the mayor’s decisions would be final, even if a councillor disagrees with their assigned committee or budget responsibilities.

"It’s part of the Municipal Act," Dilkens said, adding that decisions made by the committees will be part of the public record.

Coun. Jo-Anne Gignac expressed doubt about finding efficiencies without reducing services.

"When you’re faced with an amount like I’m hearing...it’s a lot of time, frustration and anticipation for the community to think we’ll find these efficiencies without cutting services. It’s a tough one," Gignac said.

The three budget committees could be assembled as early as Tuesday, Dilkens said, with the mayor’s deadline to table the budget set for Feb. 1.