Windsor City Council is contemplating a budget for the upcoming year that aims to maintain property taxes at the current level. In order to achieve this goal, city officials are seeking areas where spending can be reduced or revenue can be increased.
Mayor Drew Dilkens emphasized that all city services are up for consideration, with a focus on maintaining a balanced budget by exploring various options. He stressed the need for a comprehensive approach that involves both additions and subtractions in different areas.
Given the challenges faced by Windsor taxpayers, particularly due to the city’s high unemployment rate attributed to the ongoing trade tensions with the United States, Dilkens highlighted the importance of presenting a budget that charts a path towards zero tax increase.
The approved budget for the current year included a 2.99 percent tax hike and forecasts a $41 million increase in the operating budget for the next year, necessitating a 4.2 percent rise in property taxes to sustain existing services. However, potential strategies to boost revenue or reduce costs are yet to be factored in.
City staff have been tasked with devising ways to achieve a five to 10 percent reduction in the overall tax levy, which may involve measures like adjusting user fees, exploring alternative service delivery models, or securing additional funding from higher levels of government. Maintaining a property tax increase aligned with inflation poses a significant challenge due to various cost factors.
In light of escalating construction costs and other financial pressures, Dilkens has committed to adhering to a tax increase rate at or below the blended inflation rate of 2.3 percent. The review of both operating and capital budgets has been completed by senior city staff, and the next phase involves fine-tuning these budgets in collaboration with council members to address priorities.
Past proposals to cut costs, such as closing libraries or reducing certain services, have been reevaluated, with a focus on exploring alternative savings measures without resorting to drastic measures. Dilkens stressed the importance of finding efficiencies within city departments and exploring innovative solutions, such as potential outsourcing, to enhance financial sustainability.
The mayor attributed the push for a balanced budget to the economic uncertainties stemming from threats made by U.S. President Donald Trump. Efforts to streamline services and enhance operational efficiency, including the potential use of AI in certain areas, are being considered to mitigate budget overages in departments like police, fire services, and transit.
In the face of these challenges, Windsor officials are determined to navigate the budgetary landscape prudently, ensuring fiscal responsibility while addressing the city’s evolving needs.