City wants its departments to 'tighten the belt strings' as Windsor starts work on its budget

Windsor taxpayers will get a first glimpse of next year's taxes when city council meets in two weeks. 

And the city's treasurer warns it'll be a challenging budget that once again asks departments to put forward some options that could see internal budgets cut between 5 and 10 per cent. 

"We're sending the message that we do have to tighten the belt strings," said Janice Guthrie. "The mitigating measures we have put into place, some of those are drying up, so we are going to have to look deep."

Councillors and taxpayers were shocked last summer when warned of a potential 12.9 per cent tax hike because of budget pressures. 

But that number went down after administration combed through some recommended service enhancements and cut costs.

Council eventually passed a 3.07 per cent hike after losing the fight to save the city's tunnel bus service to Detroit, which Mayor Drew Dilkens decided to cut. 

Guthrie told council she'll bring forward a high-level budget report on July 28.

"I can tell you the pressure this year was not as large as it was last year, but it's not far off," said Dilkens.

"I'm not saying we're breathing a sigh of relief. We still made a commitment. I made a commitment to bring the budget in at or below the rate of inflation. That's still my goal."

Dilkens will not be splitting council into public budget committees this year to search for savings like he did in 2025.

"I spoke to every member of council and most of them actually said they didn't find it that helpful," he said. 

Guthrie has asked city departments — as well as agencies, boards and commissions that are funded with taxpayer dollars — to bring forward recommendations that cut costs by 5 to 10 per cent. 

That's been a standard practice for city departments in recent budget years, but it's new for the agencies, boards and commissions like Windsor Police Service, the Windsor airport and the library. 

"Are we sending the wrong message if we're pegging that at 5 and 10 per cent reductions?" Coun. Jo-Anne Gignac asked Guthrie during Monday's council meeting. 

Guthrie said it's a useful practice to outline where the pressures are, which can be used to ask Ottawa and the province for more money.

"I think we have to ask for potential budget cuts just as city departments are subject to those cuts. I think we have to take a look at it now. It may not be something that will be recommended," said Guthrie. 

"And not necessarily in terms of service cuts, but perhaps alternative service, making sure that one of the messages is that we cannot continue to operate without support from upper levels of government."

Holding the line 'extremely challenging'

She said with inflation and tariffs, it will be difficult to run the city the way taxpayers expect at a cost they can afford. 

City staff warned council last year that holding the line on taxes at or below inflation has been an "extremely challenging process." 

"It is no longer possible to find sufficient savings within the city-controlled budgets to offset the annual budget increases without a significant impact to existing municipal services," wrote David Soave, a member of Windsor's budget staff, after the 2024 budget process. 

City staff expect to table the budget in the first week of 2026.