Biz X magazine February 2021 Vol 24 Issue 2

Page 6

Rose City Politics

COVID-19 And The 2021 City Of Windsor Budget

In this space the Rose City Politics panel will analyze, breakdown, and critique a local political issue that affects each and every Windsor resident.

Debuting for the first time in Biz X in this edition, the Rose City Politics panel considers how the City of Windsor should address the costs imposed by the COVID-19 pandemic in its 2021 budget. The year 2020 brought with it unexpected municipal expenses and revenue shortfalls and the Rose City Politics panel (in their own individual opinions) break down the situation.

Don Merrifield Jr. One of the rarely discussed side effects of the pandemic is the economic strain all levels of government are facing. Windsor is estimated to have an approximately $30 million shortfall for this

Jon Liedtke COVID-19 has impacted lives and budgets around the world and Windsor is no exception. The city was able to reduce COVID-19 budgetary impacts by roughly $17 million, through expenditure reductions and avoided

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year’s budget. Already offset by some cost savings at the city, we will still need to find about $14 million. The obvious and short answer is to look to other levels of government to make up for the shortfalls, which will probably alleviate this year’s deficit. This will be an ongoing issue we will have to deal with for at least another year. The economy doesn’t recover instantly. The “plus side” of budgeting is that it’s all a math problem. Math problems are solvable. We will either have to make cuts to spending at the city in the short term, or raise revenue. I would suspect there will be a combination of both, as much as I prefer the cuts. Contracting out some services may be a common place to look, going forward. Everyone knows housing prices have been increasing quite a bit the last few years. Although MPAC (Municipal Property Assessment Corporation) has delayed this last year’s four year reassessment of properties, that will probably happen this year.

Windsor’s total assessment amount will go up quite a bit. Don’t be surprised if your new assessment is twice what it previously was. This will give municipalities the chance to play with the rates to increase revenue for the city. AKA increase property taxes. Unfortunately, on a percentage basis this will probably affect lower income households, because that is where a greater percentage of the increase in property values has happened. If all else fails, we can always take the advice a previous City Councillor gave to a high tech organization when they requested some city funding: “Maybe you could ask your parents?” Hope your parents are a lot richer than mine. Don Merrifield Jr. is a REALTOR serving Windsor and Essex County for over 21 years, a Co-Host on Rose City Politics for over 10 years, a former professional musician, father and grandfather, and a former Ward 3 City Council candidate.

costs, and while there remains about $27 million outstanding, city hall sources are confident the federal and provincial governments will make the city whole again. Going into 2021 with a minimal to nonexistent deficit is a rare good news story during a pandemic; other cities don’t have this benefit. But looking at the 2021 budget, there is still $30 million worth of anticipated pressures, primarily from halted revenues from the casino, airport, tunnel, and Transit Windsor. And then there are outstanding and required capital investments . . . Local media reported that regional municipalities will consider a $170 million rehabilitation of community housing stock, with a $36 million forgivable loan and a $54 million repayable loan, funded by the Canada Mortgage and Housing Corporation (CMHC) at low interest rates, with $80 million outstanding to be split by the city and county, per-capita. Similarly, in order to meet the goals of the recently passed Transit Master

Plan, there are required investments. Don’t be surprised to see a council-clash over issuing debt, with one side arguing interest rates are at all time lows and now is the time to take on debt, and the other side arguing after years of ‘holding the line’, the last thing we should do is take on debt. But, as Councillor Fabio Costante — a Director on the Windsor Essex Community Housing Corporation board — recently said while supporting debt financing to repair, renew and build more social and affordable housing, “the need is real and the timing is right.” The fact is that now is the time to take on debt: the money is there, interest rates are low, and it’s prudent and fiscally responsible to make these investments via debt financing; besides, it’s not like we’re talking about Christmas lights or streetcars. Jon Liedtke is a Co-host and Producer of Rose City Politics, a business consultant focusing on cannabis and marketing, an occasional reporter and writer, and a band member of Windsor’s The Nefidovs.

B I Z X M A G A Z IN E • F E B R U A R Y 2 0 2 1


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