By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
Council for the Town of Essex received information regarding the main impacts the Town of Essex is experiencing while working towards the finalized draft for the 2025 Budget during its November 4 meeting.
Administration is still working to balance and finalize the draft Budget, Kate Giurissevich, Director of Corporate Services/Treasurer, explained.
The 2025 Draft Budget is scheduled to be released to the public on November 22. A Budget Walkthrough meeting is scheduled for November 25. The total estimated tax rate impact will be included with the draft budget.
Some of the impacts are considered fixed, as they are a part of contractual commitments, while others are considered variables or controlled.
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.
Giurissevich noted most municipalities with OPP services noticed similar increases. The Association of Municipalities of Ontario (AMO), she added, has pledged to work with municipalities. That sum does not include the 2023 true-up for contract negotiations, Giurissevich said, responding to Deputy Mayor Rob Shepley’s question. She added that the Town has not been made aware of what 2026 would look like as of yet.
Councillor Katie McGuire-Blais asked if the OPP contract renewal is an opportunity for the Town to look elsewhere, other than the OPP.
CAO Doug Sweet said this contract was for staffing resources renewal. The service contract renewal is in a few years yet. Further discussion can take place on what the steps would look like to give Council an idea of the large process in looking at another policing service.
Councillor Jason Matyi liked the idea of starting conversations on looking for other services. He wondered if it could be discussed at the next Committee of the Whole meeting, which provides Council an opportunity to discuss an array of matters in a less formal setting.
Mayor Sherry Bondy was not opposed to discussing this in the future, but suggested looking at the cost of other services, as well. Perhaps it could be time to start discussion on a regional police force.
Other fixed increases include employment contact increases, as well as annual CPI increases.
The Report outlines 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.
The report also details the introduction of a new Assistant Manager position in the Community Services portfolio and a new Public Works Operator for $229,070. Later in the meeting Mayor Bondy presented a Notice of Motion – to be discussed at the November 18 meeting – that Council instruct Administration to implement a hiring freeze for any newly created full-time and part-time positions, effective immediately.
General inflationary increases were outlined at $192,247.
Conversely, growth in taxation is expected to be $354,641. The report details that each year as new construction occurs, there is assessment that is added to the Town’s roll book. This creates additional tax revenue that is used to fund the budget.
Variable expense increases include monies that have been directed towards the Asset Management Reserve at $373,614.
Total increases in fixed costs outlined in her report was at 8.8%. Giurissevich noted that staff is trying to make cuts where possible in finalizing the draft budget to reduce that.
“We are hoping to come in lower than that at this point,” she said.
“We know that is not reasonable. It is not practical,” Sweet added, further noting Directors are looking to provide Council with some options on how to bring that number down to be more fiscally responsible.
“Certainly, it is grim,” Bondy said of the 2025 Budget outlook information provided. “None of us want to raise taxes…we have a lot to balance.”