Tecumseh residents are facing 4.4% increase to their property taxes

It won't be a usual holiday season for Tecumseh Mayor Gary McNamara. He'll spend it poring over 2023 budget documents looking for ways to save money, trying to spare the town a projected 4.4 per cent tax increase next year.

McNamara says a number of factors have led to the increase, including inflation, supply chain issues and pandemic costs. Now a home assessed at $250,000 could pay about $86 more next year. 

"All of that is really hitting us," he said. "It's almost as if you could call it the perfect storm."

McNamara said a number of capital projects had to be cancelled or re-tendered this year due to ballooning costs.

Projects such as the Banwell Road realignment had to be re-tendered with the cost to the town increasing by more than $4 million. Diesel fuel costs rising are affecting town vehicles.

He said Tecumseh isn't alone. All across the province municipalities are being hit with even heftier increases.

Essex County's draft budget, for example, shows an increase of 4.76 per cent. 

"The difficulty that we'll have in between now and certainly when budget comes is to see where in fact we can kind of circumnavigate around those uncontrollable pieces," said McNamara, who hopes to hold the increase to under four per cent.

• City could aim for 2 to 2.5% tax increase while facing inflation pressures

When blended with the county levy and projected education levy, Tecumseh taxpayers are looking at a 3.96 per cent increase overall.

McNamara hopes some surpluses coming in at the end of the year can soften the blow and says the OPP 2023 budget is coming in at 3.3 per cent lower. The town also will not have to worry about negotiating any new union contracts next year.

"I'm going to do my best to look at areas, as I did with the county to find some areas that won't jeopardize capital and and certainly affect any of the services that our residents need and and certainly deserve," said McNamara.

Council will deal with the budget in January.

The operating and capital costs aren't the only place residents will take a hit. A budget document shows the average resident will see an annual increase of $38 for water and wastewater, or 3.6 per cent.