A month ago we would have been celebrating “Tis’ the Season to be Jolly!”
But this the start of a new year and we might now re-phrase it as “Tis’ the Season to be Considering Municipal Budgets.”
In the public sector, budgeting is very much an art with a tad of science seeping in now and then. Budgets are like organic growths, somewhat akin to trees, where every year a new growth ring is added.
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Public sector budgets rarely refrain from that annual growth pattern.
Budgets are formulated under broad rules termed policy direction. The rules are the responsibility of elected council members. Thus, a council may direct that more attention and spending towards parks, or less to parks and more to road repairs.
Hence, a budget starts with broad direction from elected officials. Those same elected officials then bear the burden of reviewing, adjusting and finally approving it.
Those who actually work hard on developing annual budgets are termed “staff.” These are people responsible for meeting policy goals set by elected councils.
However, much of the actual day-to-day delivery of policy is done by what is termed “line” employees or officials. It is highly improbable that persons repairing a broken water main have much to do with the actual budget through which they are supplied with materials and wages.
In general, budgets for any public sector municipal activity are framed as two components — operating budget and capital budget.
Funds in the operating budget are allocated for annual operations of municipal facilities and provision of services. These funds come primarily from taxes and user fees.
The capital budget’s funds are allocated for a range of activities, including road or sewer upgrades The capital budget tends to be more “future” or “anticipatory” orientated.
Capital budgets are largely funded through taxation and supplemented when possible by grants and, if necessary, from reserves. Virtually all budgets will contain a provision to set aside reserve funds, literally for that proverbial “rainy day,”
And rainy days happen — just ask those with flooded basements in Harrow in 2023.
The City of Windsor and every Essex County municipality plus the County of Essex have been in the midst of reviewing budgets.
The City of Windsor’s draft budget is a massive document. When publicly released it called for a 3.93-per-cent expenditure increase for 2024 over 2023. As an aside, compare that to Toronto’s 10.5-per-cent increase.
That pattern of 2024 budget increases prevails throughout all seven county municipalities and their upper-tier county government. Impacts are displayed as dollar increases on the average home assessed value. Assessed home property value is derived from Ontario’s Municipal Property Assessment Corporation (MPAC).
All municipalities will have tax increases in 2024. Interestingly, average home value varies among municipalities. Moreover, often one needs to dig a little deeper to find total blended tax which includes county and school board components.
Kingsville’s 2024 budget includes a tax increase of $158.17 for an average home assessed at $250,000. Kingsville did not appear to have a clear percentage budget increase but calculations suggest it could be eight per cent over 2023.
LaSalle’s property taxes will increase by about 5.5 per cent in 2024. That’s $154.47 on an average assessed value single family home at $269,000.
Lakeshore initially proposed a tax increase of 3.75 per cent, resulting in a home owner tax increase of $143. However, when county and school board levies ($52) are blended in, the total tax increase is $195, which brings the percentage increase closer to six per cent for 2024.
Town of Essex residents will experience a blended tax increase of $159 or 5.07 per cent for 2024, which is marginally lower than originally proposed by town administration.
Amherstburg property owners appear to be paying about 7.13 per cent more in 2024, or about $190.14 on an average property assessed at $250,000.
Tecumseh’s budget included an increase of 5.55 per cent, or about $175 on an assessed property value of $250,000.
Leamington’s council approved a budget that apparently increases property tax by only 3.8 per cent on an assessed dwelling valued at $190,000.
Essex County’s budget, after extended debate, seems to include a six-per-cent increase, or $31.60 for every $100,000 of assessed property value.
So, no matter where you live in Essex County it will cost more to live here in 2024.
Lloyd Brown-John is a University of Windsor professor emeritus of political science. He can be reached at lbj@uwindsor.ca.
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