THUNDER BAY -- City council managed to cut more than $410,000 during its first round of budget talks Thursday.
The bulk of that came from a $500,000 decision to reduce money heading to a reserve fund and cut around $279,000 to its fuel budget given the low price of oil.
The cuts, plus several additions, including $81,400 for a new law clerk and $181,000 more to help support the financially struggling Shelter House, bring the current proposed tax levy to 5.53 per cent or 3.59 for existing taxpayers. That levy started at 5.77 per cent, 3.83 for existing. The final decision will be made when the budget is ratified Feb. 29.
While city council was cautioned that uncommitted money in its rate stabilization reserve fund, used to tackle year-end deficits, would be at zero should last year’s deficit hit its worst-case-scenario $1.7 million, they were also told the fund has millions in committed funds that will likely be refunded by the province.
The money, the bulk of which will be for severance, is being used to sign off on the two old age homes. While it’s not a given that the province will refund that money, so far Ontario has taken on the full cost of uploading.
“I’m bringing it forward to set a tone for this budget,” Mayor Keith Hobbs, who suggested the reduction, said.
Some on council approved the idea on Thursday but want more information about its impact before the budget is ratified Feb. 29.
“I think we need to understand whether or not we’re really cutting it too close,” Coun. Iain Angus said.
As for fuel and diesel costs, around $262,000 cut from fleet services and another $17,500 from police, acting community services manager Gerry Broere said the city uses five year averages to budget for fuel costs.
The way the market is going, it’s likely that costs will go down. It was only after a lot of time watching trends in the market that administration was able to comfortably make the recommendation.
“We wanted to make absolutely positively sure that we were making the right decision,” he said.
Coun. Andrew Foulds, who introduced the motion, said cutting the fuel budget just makes sense.
“This is an easy win for all of us,” he said.
On the addition side, council voted to throw Shelter House a $181,000 lifeline but opted to make it a one-year deal. Hobbs and several other councillors said the time has come for the provincial and federal government to start funding the organization’s programs, well outside of a city’s abilities to fund.
The one-year amendment came from Coun. Joe Virdiramo saying that at some point council has to stop being turned down by senior levels of government.
“There’s got to be a time when we take a stand and say ‘this may be the final year that we’re doing this’,” Virdiramo said.
Hobbs agreed saying the city is going to bring it up every time they meet with provincial and federal officials.'
“We’re going to be very forceful this time. We shouldn’t be funding health care,” Hobbs said.
Hobbs said the Northwest Local Health Integration needs to be held accountable as well. An alcohol management program is funded by the Northeast LHIN yet Shelter House has been denied funding. With 17 homeless deaths in Thunder Bay last year compared to 29 in a city as big as Toronto, Hobbs said something needs to change.
“There’s something really wrong with this picture,” he said
Other additions include $81,400 for a new law clerk, $40,000, half in-kind donations, for the Staal Foundation Open and $28,500 to publish a book commemorating the city's First World War City of the Poppy campaign.
Budget talks will resume Feb. 17.
