THUNDER BAY – The City of Thunder Bay’s 2025 capital budget, as proposed, represents a $58.5-million increase over 2024.
According to a report scheduled to be presented during Monday’s committee of the whole meeting, next year’s proposed capital budget stands at $161.8 million. The city budgeted $103.2 million last year.
The increase, if it is approved as is by council, would represent at 57 per cent hike.
The biggest contributor to the hike is the indoor turf facility, with $32 million budgeted for 2025, representing 75 per cent of the total cost of the facility.
An additional $5 million has been earmarked for the temporary homeless village, which council approved on Monday and is slated for one of two south-side sites.
Housing accelerator funds represent another $6.5 million of the proposed budget and $4 million would be used for the Housing-Enabling Water System Fund.
The report indicates $47.9 million of the overall budget will be covered by grants. Another $35.4 million, or 22 per cent of the $161 million, will be covered through debentures, and $55 million will be drawn on from the city’s reserve funds. The tax levy will cover the remaining $22.6 million, which city officials say represents a 3.8 per cent increase of the base levy and $2.7 million added over the 2024 number related to the retirement of the rate-supporter homes debenture.
Coun. Mark Bentz, the budget chair, said new projects will only represent 20 per cent of the capital budget.
“The remaining 80 per cent will be dedicated to renewal. That’s another way of trying to tackle the infrastructure deficit,” said Bentz, alluding to a $30-million annual infrastructure shortfall in Thunder Bay on Wednesday night during a brief report at an at-large town hall held at city hall.
This budget season, unlike previous years, the capital and operating budgets will be presented to the public and debated on separately. The operations budget will hit the council floor early next year.
A public budget survey opened on Wednesday and will run through Nov. 12. The results will be presented to council on Nov. 25.
Administration is recommending that council approve the capital budget, saying it is in line with council’s 2025 budget mandate, which approved a 3.8 per cent increase, before growth for operating and capital budgets.They'll begin deliberations on Monday.
Broken down by department, Transportation Services would receive $27.2 million, Environmental Services would get $49.9 million, Protective Services is slated for $3.7 million, Parks, Recreation and Neighbourhood Services would get $62.8 million, Social and Health Services would receive $14 million and Corporate Initiatives and Operational Support gets $3.9 million.
