Windsor city council pursues 0% tax hike, 10% cutting to offset $14.5M deficit

Windsor city council has instructed administration to look for ways to cut costs in the 2022 budget, to offset a $14.5 million deficit brought on mainly due to the pandemic.

Administration was suggesting seeking ways to cut five per cent from the budget and levy a tax hike of 1.16 per cent, but Coun. Fred Francis made a motion that they try to cut 10 per cent from the budget and try for a zero per cent increase in tax as they usually do.

"One of my fears is that we continue to take in increases to the point where council becomes irrelevant," said Francis during Monday's council meeting on Zoom.

"The increases just happen automatically and all of a sudden those non discretional spending items become more and more and more and more and more," said Francis.

The motion passed by a narrow six to five margin.

Coun. Chris Holt was opposed to going for more austerity because it would create unnecessary angst in the community.

"People stew and stress about the loss of their valued services,"said Holt.

But part of what council voted for was to also seek more financial help from upper levels of government.

"Our hope and our desire is that senior levels of government will recognize that municipalities will need some time to transition back to what are normalized levels on budgets, and that will be transitional funding through 2022 and perhaps into 2023," said city treasurer Joe Mancina.

Mayor Drew Dilkens, who voted for Francis' motion, cautioned that council won't have to make the tough decisions on cuts until budget day.

"At the end of the day it doesn't mean anything until you get to budget day and you employ discipline," said Dilkens.

The city passed its annual budget in February with no tax increase despite a $38-million deficit. At the time, officials said they expected to make up for the COVID-19-related shortfall through funding anticipated from other levels of government.

In March, the city reported to receive about $19 million from three programs for municipalities, including $6.1 million from a public transit fund under the federal-provincial Safe Restart Agreement.

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