City of Windsor Updated Budget Released

Next Step in Process following Council’s Operating Budget Review

The City of Windsor has released updated 2023 municipal budget documents and reports that will be considered by City Council next month. Operating budget documents have been updated to reflect new financial information that has become available since the Council-led Budget Review Committee met last month. Additionally, the 2023 capital budget has now been released for public and Council consideration. The 2023 10-year capital plan calls for record investments of $1.8 billion in infrastructure and other priority works, including roads, sewers, parks, and economic development initiatives.

Earlier this year, administration presented a draft 2023 operating budget to a special Council committee, which spent a week reviewing in detail all of the 2023 budget estimates for all City departments and looking for savings opportunities. The Operating Budget Review Committee (OBRC) reviewed the 2023 budget estimates in late January and voted on additional cost savings measures. Through this participatory budget process, chaired by Ward 1 Councillor Fred Francis, Councillors voted and approved savings measures that brought the proposed tax levy increase down from 5.23% to 4.59%. Since that time, additional cost pressures have arisen that have increased the proposed rate to 5.02%. These additional budgetary pressures include the following:

• Land Ambulance Costs beyond January 2023 OBRC Estimate: $858,200
• Provincial Gas Tax Reduction for 2023/2024: $209,322
• Cyber Insurance Increased Cost: $96,480
• Engineering Development – Organizational Restructure: $270,994
• Per Diem Rate Increase for Residential Services Homes Program: $450,000

Each of these cost pressures has emerged since the conclusion of the Operating Budget Review Committee’s work and represent non-discretionary expenditures resulting primarily from mandated and/or provincially required service delivery. These additional budget pressures represent an additional $1.9 million in costs and an updated proposed municipal tax levy of 5.02%.

Fiscal 2023 has presented significant challenges for municipal governments across Canada to maintain existing public services at a time of increasing costs, inflationary pressures and reduced pandemic supports from upper levels of government. Comparisons with similar jurisdictions across Ontario place Windsor below the average of 5.34% for 2023 municipal tax levy increases. It is also important to note that most other municipalities also have an assessment growth rate that is generally in the range of 1% to 2%. This is higher than the City of Windsor assessment growth rate, which falls in the 0.55% or lower range. Assessment growth rates would be in addition to the tax levy increases listed below:

City Council will meet on April 3, 2023, to consider and approve the final 2023 capital and operating budgets, and set the final municipal tax levy increase. In January 2023, the Operating Budget Review Committee voted on 21 unique cost-savings proposals, which reduced the operating budget by over $2.8 million, meaning that very few additional cost-savings options remain to mitigate against these additional pressures. Despite this challenge, City administration will undertake to report to Council next month with any additional potential savings options.

See this year’s budget materials on our website.