by Sylene Argent, Local Journalism Initiative
After deliberating for over three-and-a-half hours during the meeting on Monday afternoon, Essex Council settled for a 4.66% blended – including education, County, and garbage collection - 2025 tax increase.
That is an increase of $153 per year or $12 per month for the average household valued at $192,000 in Essex.
The non-blended General Levy Increase is 5.63% for 2025.
On November 25, Town Administration walked Council through the draft document, so members could have time to think over the details and ask questions before deliberations started on Monday to finalize the 2025 Budget.
During the Budget Walkthrough, the Town’s proposed 2025 Budget outlined revenues and expenses of $71.1m and over $14m of that dedicated towards capital initiatives. This started the blended tax rate increase at 6.31%.
If Essex, for instance, collected a 1% tax increase, that would equate to around $187,970. If LaSalle did the same, it would collect around $434,000.
Changes to the Budget document since the Walkthrough:
Some changes occurred since information was presented to Council during the Walkthrough, Kate Giurissevich, Director of Corporate Services/Treasurer, explained.
• The OPP contracted services, which includes contractual increases for wage settlements, was reduced $168,400 from its proposed $615,984 rate. The Provincial government committed to funding a portion of the increase. Giurissevich suggested a stabilized approach, with a portion of the increase in 2025 and in 2026.
• The Municipality of Leamington, which operates the Leamington to Windsor transit bus service, was informed the grant for this route was cut. In order to maintain service, the County earmarked 50% of the funding, but the municipalities have to contribute. Essex would have to contribute $20,000.
• The Town will also take $10,500 from the Green Fund Reserve to fund the Tree Planting Program Policy.
• $100,000 was saved to the Asset Management Plan (AMP), as the Federal Government will fund the Colchester Harbour breakwall.
The 2025 Budget includes:
These items were presented with a mix of funding, depending on the items, from taxation, various reserves, grants, or user-fees.
• Monies dedicated to the Asset Management Program (AMP), with a current 1.5% levy presented in the 2025 budget. The AMP ensures the Town plans to replace existing assets. The AMP, however, recommends a 2.6% increase per year;
• The budget includes a 1% tax increase dedicated to roads;
• $1.7M for servicing of sanitary sewer expansion for Inspiration Industrial Park Lands, to be repaid from Development Charges and Capital Charges from impacted landowners;
• Conversion of Town Facilities to LED lighting and more efficient systems where possible;
• The introduction of a new Assistant Manager of Facilities and Events in the Community Services portfolio for $133,392. It was noted current employment put in 600-plus hours of overtime last year in describing the need for the position;
• A new Public Works Operator for $95,600. Though the town has grown in size, the staff compliment has not changed since 1999;
• Nearly $40,000 was included in the Budget to replace three sides of fencing at Erie Cemetery, but Administration was directed to report back on possible alternative fencing styles;
• $50,000 to provide electrical and $40,000 for the washrooms at the Essex Sports Fields;
• $50,000 for the design for the amphitheatre planned for the Heritage Garden Park. The Essex Centre BIA agreed to pay half;
• $85,000 for an electric truck for the Community Services Department as part of its EV pilot project;
• $120,000 for additional scope for the Official Plan. 90% from DC Reserves and 10% from the Services Reserve;
• $445,000 for a new snow plow;
• $200,000 for the Transportation Master Plan, 50% funded from DC Reserve, 25% from the General Contingency Reserve, and 25% from the Trails Reserve;
• The road rehabilitation project of Phase 1 of 2 on Iler Road at $650,000, from County Road 20 to south of Huffman Road. Funded from OCIF;
• The road rehabilitation project for Huffman Road, from Ridge Road to Iler Road, for $750,000. Funded from OCIF;
• The 5th Concession Road bridge work at $1.5M, from Asset Management Reserve;
Changes Council made to reduce
the originally proposed tax increase:
• Earmarked the remaining funds in the 2024 Council Contingency Fund towards tree planting, which is around $13,000. Staff will return with a report on trees options or a potential nursery plan;
• Removed the Accessibility Advisory Committee’s suggestion to incorporate a Community Improvement Plan for Essex Centre and Harrow to allow businesses to be able to apply for an accessible entrance grant with the program total $24,000, and $16,000 total for a grant program for assistance with sidewalk patios. A report can come back in the future, looking at possible options, including potentially utilizing the Accessibility Reserve;
• The Community Partnership Fund Grant, open to local organizations that benefits the Town or residents, was reduced. There is $100,000 typically set aside, of which around $26,000 is committed to the Guardian Marine and Heritage Essex, which maintains the Essex Railway Station. It is fully levy supported. The non-committed portion of $73,000 was dropped down to $33,000 to be distributed to community groups who apply. $10,000 of these dollars were carried over from $2024;
• $115,500 for PPE upgrades and equipment for Essex Fire;
• The Council Contingency Fund, dollars Council can pull from for unexpected projects, is typically $25,000. It was reduced to $15,000;
• The $35,000 set aside for the Parking Plan for Colchester was removed. More discussion needs to be had on this;
Essex Centre BIA levy increase passed
Council also approved the Essex Centre BIA Board’s proposal to increase its levy to 2%. On an assessed $500,000 building, that would equate to $19 per year. It is also proposing a 5% increase to those who are currently capped at $6000 per year to $6300. That was implemented over a decade ago.
Deputy Mayor Rob Shepley was opposed, as businesses had to endure COVID and the streetscape last year.
Councillor Joe Garon clarified the levy is charged to the landowners, not the businesses.
Official Adoption
Council adopted the Capital and Operating budgets in Principle. Formal by-law adoption for the 2025 Budget will take place in the New Year.
It also approved the authorization to complete, in fiscal year 2025, any previously approved projects that remain outstanding as of December 31, 2024 and do not appear in the 2025 Budget as presented, so long as the project costs do not exceed previously approved funding amounts or allocations.