City Outlines 2025 Budget Pressures

Mayor Drew Dilkens and City administration outlined the City of Windsor’s 2025 preliminary budget pressures today.

Despite anticipated long-term revenue growth from economic development, increased business activity, and rising housing starts, the City faces extraordinary budgetary pressures in considering the 2025 City Budget. 

On September 10, 2024, Mayor Dilkens established three finance committees of councillors to find base operational and service-level savings across all City departments. Later that week on September 12, 2024, Mayor Dilkens directed an immediate hiring freeze for full-time permanent positions at the City of Windsor.

Today, Mayor Dilkens, Chief Administrative Officer Joe Mancina, and City Treasurer Janice Guthrie explained that the total 2025 preliminary budget pressures, without considered reductions, would amount to a tax levy increase of 12.9% or $62,578,206. 

This projected tax levy increase is driven primarily by factors that are outside of the corporation’s control, including contractual obligations (4.28%), legislated requirements (1.11%), and inflationary pressures (0.94%). Collectively, these three items represent a 6.33% or $30,691,270 total increase to the levy. 

This does not include contractual and other increased costs to the City from the Agencies, Boards, Commissions and Committees (ABCs), which have been projected by administration to represent an additional 2.09% or $10,130,501 increase to the total tax levy.

This information was provided to the Finance Committee chairs in a meeting with City administration on September 16, 2024, and will form the basis of their mandate to find base operational and service-level savings across all City departments. Beginning with deliberations the week of September 23, 2024, the committees will have all reasonable resources required from City administration to undertake this work.

Quotes:

“Today’s sobering update on the pressures facing the City of Windsor 2025 Budget is a call to action for City Council and residents. Together, we need 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.”
- Windsor Mayor Drew Dilkens

“The preliminary 2025 budgetary pressures impacting the overall tax levy are considered extraordinary this year. A detailed review and refinement of each of the pressures by senior administration will be taking place in conjunction with the Budget Committee operational and service-level reviews. I remain optimistic that, collectively, we can present a 2025 City Budget that mitigates current pressures while delivering the services valued by residents.”
- Janice Guthrie, Commissioner of Finance and City Treasurer

Additional Information: 

• In accordance with the Municipal Act, the Mayor is required to table an annual budget for City Council’s consideration on or before February 1 each year.
• The City’s 2024 budget, finalized in February, with a 3.91% municipal tax levy increase, included all proposed amendments from City Council; continued to pay down legacy debt, increase reserves and invest in growth; and included a $1.9 billion 10-year capital budget to sustain the city’s future development. 
• In May 2024, City Council unanimously approved a budget amendment to increase the municipal tax levy by an additional 0.7% to support the Strengthen the Core: Downtown Windsor Revitalization Plan. 
• Council’s fiscally responsible approach to the City budget has saved Windsor taxpayers a cumulative $1.38 billion since 2008. Since 2006, Windsor residents have experienced a total increase in their tax levy of only 12% versus the provincial average of 67%.