Essex County residents face an inflation-era property tax increase of 4.76% - Action News
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Windsor

Essex County residents face an inflation-era property tax increase of 4.76%

The county warden says the $124-million budget is impacted by inflation, just like local households.

Warden says $124M budget is impacted by inflation

The amount Essex-Windsor EMS is paying in waves is about to increase by 9.53 per cent, according to the 2023 draft budget for the County of Essex. (Mike Evans/CBC)

Essex County residents are facing atax increase of4.76 per cent next year as the county struggles with inflation.

The draft budget of$124,719,230 isabout $8 million more than last year.The biggest proposed increases are in infrastructure, paramedic services and the Sun Parlor Long Term Care Home in Leamington. Council is scheduled to give final approval in January.

"This is one of the most difficult budgets I've had to work through," said Mike Galloway, chief administrative officer of Essex County, during ameeting Wednesday. "All of the increase in costs, goods and services, inflation, the list continues to go on and on."

"This budget cyclehas challenges," said Warden Hilda MacDonald.

"Soaring inflation, the ongoing pandemic-related costs, the recruitment and retention of employees like never before, particularly in the health-care sector and the need for accelerated infrastructure improvements to accommodate the new battery plant and the regional hospital."

A woman with short white hair wearing glasses and a grey and white sweater
Hilda MacDonald is the warden of Essex County. (TJ Dhir/CBC)

County staff say the budget is still below the inflation rate of 6.9 per cent.The Bank of Canada raised its benchmark interest rate again today, making it the seventh increase this year alone.

MacDonald told CBC News before the meeting that the county has done what it can.

"We have to come up with something hopefully that is palatable and affordable."

The changes would amount to an increase of $23.62 per every $100,000 in property assessment. That means a property assessed at $100,000 would pay$520.38 in taxes in 2023, compared to $496.76 the year before.

Here are some of the proposed increases:

Infrastructure

At 4.17 per cent, the biggest tax impact percentage increase relates to infrastructure services. An additional $4,971,640 will be collected from taxpayers in 2023.Key problemsinclude labour shortages, increased construction costs and the More Homes Built Faster Act, also known as Bill 23.

The budget outlines the main infrastructure objectives as the County-Wide Active Transportation System Master Plan (CWATS), which aims at guiding municipalities in the county to implement a network of cycling and pedestrian facilities over the next 20 years, as well as improving the existing road network.

Paramedics and Sun Parlor Home

The increase to paramedic services accounts for 1.43 per cent of the tax increase. A partial cause: in 2022, the county hired 12 more paramedics later in the year. This budget reflects the full cost of the new hires.

The draft budget includes increased salary pressures to the tune of 9.53 per cent. Operating expenses overall are set to increase by about 14.31 per cent.

At Sun Parlor Long Term Care Home, salaryand wage costsare set to increase by an average of 11.64 per cent, with the biggest increase seen in nursing staff costs.

City staff say the increase is largely because of new provincial policyrequiring four hours per day of direct care to residents by 2025. The 2023 figure represents three hours and 42 minutes of resident care. That's 12 more minutes than what's currently provided.