by Sylene Argent, Local Journalism Initiative
During the 2025 Budget walkthrough meeting on Monday evening – the first opportunity to discuss the document in pubic and ask questions of Town administration – Essex Council learned that, should the draft 2025 Budget be adopted as presented, the tax increase would be 6.31%.
Currently, the median single-family dwelling property value is assessed at $192,000. With the proposed increase, that would equate to a $208 increase per year or $17 per month.
If Council wants to reduce that by just 1%, it would have to cut over $180,000 from capital funds that come from taxation.
“We know where we are at now is not where we are going to finish,” CAO Doug Sweet said, noting staff can highlight where reductions could be made for Council to consider when deliberations begin on Monday, December 9.
The Town proposed a 2025 Budget with revenues and expenses of $71.1M, with over $14M of that dedicated to capital initiatives, $8M of which is property tax focused and $6M user-rate focused.
This document outlines the approach intended to strengthen the Town’s financial position, address infrastructure needs, and maintain the services residents access regularly, Sweet said.
“Similar to past years, this was a challenging budget to prepare,” Sweet commented. “The current economic landscape has brought forward new challenges. Administration has made significant efforts to reduce expenses and balance additional costs and continue to provide the same level of service our residents expect.”
Kate Giurissevich, Director of Corporate Services/Treasurer, noted a few trends were noticed when putting together the 2025 Budget. One was that contractual obligations took effort to implement. Staff also linked this Term of Council’s Strategic Plan into the budget. Quality of service was also taken into consideration with a stabilized approach, rather than a freeze and hike method.
The Budget, Giurissevich explained, incorporates contractual increases from the current policing contract, as well as the town staff union contract.
When presenting the Budget Outlook in early November, Giurissevich noted the largest impact to Essex’s expenses is the increase in OPP contracted services, which includes contractual increases for wage settlements. The annual increase in this contract is $615,984. That equates to a 3.3% tax rate impact.
There was also the net contractual increases of $590,485. In 2024, the Town settled the new Union contract, effective until 2027. The Town also approved the non-union salary review. A funding strategy was presented at that time.
Giurissevich noted salaries account for over 27% of the Town’s Operating Budget expenditures. In addition, staff recommended the introduction of a new Assistant Manager of facilities and events in the Community Services portfolio for $133,392 and a new Public Works Operator for $95,600
The 2025 Budget also dedicates money to the Asset Management Plan program, with a current 1.5% levy presented. This prepares for town-owned asset maintenance.
“We do have an under-funded [asset management] program right now,” Giurissevich said.
Asset Management is a long-term process that allows municipalities to make investment decisions for its infrastructure assets. The Asset Management Plan helps to determine the value of the Town’s Assets and how much is required to be reinvested.
The Town’s core (assets roads, bridges, culverts, etc.), based on a 2022 study, equates to $621M. Non-core assets (buildings, vehicles, and equipment) equates to $71M.
Even though the Town is contributing towards its core assets, it is still in a deficit position according to the Asset Management Plan. For core assets, the Town should be putting away $13.4M annually, and $4.7M is proposed in the budget. In 2023 and 2024, new levies were introduced to try to close the funding gap. Monies from the landfill tipping fees goes directly into the Asset Management Reserve, as well.
The garbage levy has an 11% increase, equating to an additional $22 per household. Giurissevich added that in 2026, there will be an additional truck for organics, in which the Town of Essex is required to take part. It is not known what that will look like now. She is taking the approach of stabilized increases and phasing it in over a two-year period, rather than in 2026 having a drastic increase. There is around $500,000 added to the budget for the organics program.
The budget includes a 1% tax increase dedicated to roads.
She added that since the Town is no longer waiving Development Charges, they no longer need to be funded through reserves. That saves residents 0.51% of a tax increase.
Key projects highlighted include the servicing of the Essex Sports Fields, servicing of Inspiration Park Lands, and continued work on the Town’s Official Plan. It also includes the conversion of town facilities to LED lighting and more efficient systems, where possible.
To find alternative ways to assist in stabilizing tax increases, Giurissevich said user-fees were also adjusted where applicable to be cost conscious, and a longer-term impact plan was established.
Giurissevich noted Essex, out of all municipal comparators, has the lowest assessment base, but still provides all the services municipal neighbours do.
If Essex, for instance, collected a 1% tax increase, that would equate to around $187,000. If LaSalle did the same, it would collect around $434,000.
In preparing the budget, the Town needs to predict growth accurately and needs to consider the Consumer Price Index to predict how prices may rise headed into the future.
The Town relies on grant monies to fund the operating and capital budgets, Giurissevich explained. The main source of grant revenue for operations is from the Ontario Municipal Partnership Fund. The 2025 commitment will be $4,374,000, around $300,000 more than 2024.
There was, however, a reduction for the Capital Budget. Through the Canada Community Building Fund (CCBF), the Town will receive $1,095,046, which was $1,055,799 in 2024, and $1,189,700 through the Ontario Community Infrastructure Fund (OCIF), which was $1,388,571 in 2024.
Giurissevich noted that between May, when staff started putting together the draft Budget and presenting it, administration cut $600,000 that did not make the draft 2025 Budget document.
Some items listed in the proposed budget includes $50,000 to provide electrical and $40,000 for the washrooms at the Essex Sports Fields, and $50,000 for the design for the amphitheatre planned for the Heritage Garden Park. The Essex Centre BIA agreed to pay half.
Others include $35,000 for a paid parking plan for Colchester, $85,000 for an electric truck for the Community Services Department as part of its EV pilot project, $120,000 to complete the second phase of the Official Plan, $445,000 for a new snow plow, and $200,000 for the Transportation Master Plan.
The items were presented with a mix of funding, depending on the items, from taxation, various reserves, grants, or user-fees.
Hot mix asphalt is recommended for Fox Sideroad and part of Gore Road for $455,000 (from CCBF), for Oak Drive and Park Land for $465,000 (from CCBF), $200,000 for Kingsway and Earl Court (from Asset Management Reserves), Twin Gables Drive for $165,000 (from CCBF) and Fernwood Drive, Woodland Drive, Trelene Court, and Murdoch Street for $365,000 (from Asset Management).
Also recommended is rehabilitation work for Iler Road at $650,000 and $750,000 for Huffman Road, both funded from OCIF.
Road resurfacing is recommended for Pinkerton Sideroad, South Malden Road, 13th Concession, and 6th Concession, for $500,000 from Asset Management Reserve.
Also proposed is a pedestrian crossing across Talbot Street North, near the high school, for $30,000. This would be funded through taxation and a $10,000 contribution from a developer.
The 5th Concession Road bridge is recommended for work at $1.5M, from Asset Management Reserve.
In addition, Dave Kigar, Essex’s Community Member and Vice Chairperson, presented the Essex County OPP Detachment Board – North Budget that was passed at the committee-level recently. It was set at $114,870. Essex, Lakeshore, and Tecumseh will have to pass it as well. In 2025, Essex and Lakeshore will each contribute $38,109.67 and Tecumseh $38,650.67.
Stephanie Winger, Chairperson of the Essex Centre BIA, approached Council about the BIA Levy, paid for by commercial and industrial property owners within the BIA boundary.
She said it has not seen an increase in quite some time. The Board is proposing an increase of 2% to the levy. On an assessed $500,000 building, that would equate to less than $20 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.
Council received the presentations from the Essex County OPP Detachment Board and Essex Centre BIA. It also received the Budget report.
Council was asked to forward any questions they may have on the budget to staff, prior to the first 2025 Budget Deliberation meeting.
Resident feedback is encouraged on the webpage dedicated to the 2025 Budget on www.essex.ca.
Through an online tool leading up to the Budget, residents were able to choose their priorities, giving staff and idea of what residents wanted their tax dollars to go towards. 226 participants took part in this process, a slight increase from last year.
Top of the resident wish list was road repairs, for the second year in a row. This year, nearly half of the tax-supported budget is dedicated to roads and roadside repairs. Flood prevention came in second, third was emergency response and preparedness, including OPP and fire services, Giurissevich outlined.
Through resident comments, there was a trend for the Essex Sports Park being developed on the south-side of Highway 3.