Nearly 13% forecasted tax hike 'unacceptable,' Dilkens says, reiterating campaign promise

Windsor's mayor says that despite a projected 12.9 per cent budget increase this year, his target remains a tax increase that is at or below the rate of inflation — a target that would require deep cuts to the city's budget. 

Calling it a "sobering" update, Dilkens called on councillors and residents "to find practical solutions that will allow for necessary investments in growth to sustain Windsor's record economic development while continuing to keep this great city affordable for all residents."

That tax increase would add more than $62.5 million to the city's tax levy. But Dilkens called it a "starting point," and "unacceptable."

Dilkens says nearly half the projected increase is due to factors outside the city's control, including contractual increases and legislative requirements.

But Dilkens said he was "aware" of his campaign promise to residents: Tax increases at or below the rate of inflation. 

"That is my goal and I am hopeful we can get there," he said. "But I also understand the challenges it will take to get to that point."

On Tuesday, Dilkens said while that number is different for municipalities than residents, based on current conditions it's around three or four per cent. 

The city will attempt to mitigate the increase without touching the capital budget, he said, instead looking for savings in the operational budget. 

"There is no doubt there will be some pain if we want to get down to four per cent," he said. "We are committed to looking at every area, there are no sacred cows, we'll look at everything and do the hard work."

Earlier this month, Dilkens ruled out the possibility of a double-digit tax increase, saying the city would find the necessary cuts. 

"It's fair to say it's higher than we've seen in the past 20 years," he warned at the time. 

Mayor launches hiring freeze

Dilkens instituted a hiring freeze last week, as the city has nearly 200 vacant positions, in a bid to mitigate budget impacts, and also created three budget committees tasked with different elements of the budget review. 

"We are still facing significant pressures that are driving multiple costs upward," said Janie Guthrie, the city's commissioner of finance and city treasurer. "Our employment and social assistance programs remain in high demand. Program and service targets to assist those with housing needs are at maximum capacity."

The city's budget increase last year was an initial 3.9 per cent, with an additional 0.7 per cent added to the budget in May to fund the city's Strengthen the Core plan for downtown. 

When asked about the city's history of zero per cent tax increases and how that would change the city's position this year, Dilkens said he "trusts the residents how to spend their money first."

We did that for a lot of years...Residents have been able to keep the money in their pocket," he said. 

"We're at the pinch point now where you look at the culmination of lots of things coming together where we're going to have to make some difficult choices."

Ward 10 Coun. Jim Morrison, who is chairing the budget committee focused on economic development and engineering, said "the numbers are huge."

"We're going to be working very hard and asking really tough questions of our leadership team to see what makes sense and what doesn't, because something has to change," he said, noting his committee has two meetings scheduled so far. 

The city's budget deliberations begin next week.