levy impact of 3.6% or an estimated $102 for a residential property assessed at the average value ($163,000).

It is not the intention, through this budget report, to bring forward for consideration any changes in tax burden as a result of assessment changes or tax policy decisions. Those changes will be separately reported to Council at a later date. As such, it is emphasized that the estimated increase in property taxes for the average homeowner noted above are subject to change. Additionally, it is further emphasized that, due to reassessment phase-in changes, even keeping the total tax levy at the same amount as last year does not provide assurance that there will not be an increase for the average residential property owner. The reason for this is the shifts between the tax classes and between individual properties that inevitably arise from the re-assessment increase phase-in changes.

Should City Council wish to avoid a property tax levy increase, it is noted that after many years without a levy increase, and modest below inflation levy increases in 2017, 2018 and 2019, combined with increasing service demand due to the increasing population, service levels will no doubt deteriorate as inflationary pressures erode purchasing power.

As previously communicated to City Council, the multiple years of holding the line on property taxes has resulted in significant cumulative savings accruing to taxpayers and has provided for ongoing and continued future annual savings. Even with the modest increases approved from 2017 to 2019, those cumulative savings have still continued and are now estimated to approximate $750M in total (2008-2019) with ongoing annual future savings expected to be in the range of $100M. Essentially this continues to illustrate that even with modest increases, that after multiple years of holding the line on taxes, the overall Property Tax Levy remains below most of our peers and hence results in continued savings to our taxpayers.

Put in more practical terms, had the annual property tax levy increases since 2008 averaged 2% (generally around inflation), property taxes in the City of Windsor would be approximately 24% higher than current levels. A property owner, with a home assessed at $163,000, would therefore be paying approximately $700 more annually than what they currently pay.

It is Administration's view that the 2020 recommended budget achieves a reasonable balance between fiscal restraint and the desire to maintain or improve the levels and quality of services to our citizens.

Background:

Operating Budget Process

At its meeting of July 22, 2019, City Council received a report from the CFO & City Treasurer as it relates to the 2020 City of Windsor Proposed Budget Process and Timelines. In that report, City Council was asked to provide direction to Administration with respect to Council's priorities relative to the development of the 2020 Budget, including fiscal goals and any desired increases or decreases to service levels.

Through Decision Number CR361/2019, City Council provided the following direction:

That the report of the Chief Financial Officer & City Treasurer dated July 4, 2019 regarding the 2020 Proposed Budget Process & Timeline BE RECEIVED for information.