Windsor's record proposed tax hike has shrunk. Here's where it stands now

Senior leadership at City Hall say they've been able to reduce the initially proposed tax hike of 12.9 per cent for Windsor homeowners.

It now sits at 7.37 per cent after staff reviewed initial requests for service enhancements from city departments.

That's still an increase higher than any in recent history and twice the rate of inflation. 

That means a taxpayer with a home assessed at $164,000 would pay about $230 more in annual property taxes next year.

Staff say the budget continues to be a work in progress.

"Where a lot of the big change is, we've taken a look at the corporate accounts, additional revenue opportunities," said city treasurer Janice Guthrie.

Proposal lowers taxes by increasing user fees

The revenue opportunities will likely come from increased user fees. 

Guthrie, speaking during a budget review finance committee on Wednesday, said staff have prepared a budget that includes a three per cent increase to user fees. 

She said it also includes a review of those fees compared to similar municipalities.

"And we're still going further with that review," said Guthrie. 

The initial budget included an expected $4-million increase in revenue from increased user fees. The administrative review added another $4 million in expected revenue growth. 

But there's no guarantee that increases to user fees will bring in more money. 

"When you raise your user fees, it doesn't mean your revenue increases. People may stop participating or they may not make use of that particular service," said Coun. Jo-Anne Gignac.

Administration cuts back proposed service enhancements 

Gignac leads the corporate and community services committee, one of three committees created by Mayor Drew Dilkens to look for ways to bring down the preliminary tax increase. 

A final budget needs to be presented by Dilkens to council in February. 

The new number also includes a massive reduction to proposed service enhancements included in the original preliminary budget. 

City departments initially proposed $8.1 million worth of enhancements, accounting for 1.68 points of the initial 12.9 per cent proposed tax increase. 

Guthrie said a review by the senior leadership team at city hall has brought that down to $1 million, or a 1.3 point reduction in the proposed tax increase. 

The city hasn't made public what any of the suggestions are.

This updated budget number translates to a $24-million increase in the city budget compared to 2024, down from the preliminary figure of $62 million.