THUNDER BAY -- The city's 2016 budget is now official.
Councillors ratified the budget Monday night, approving a 4.04 per cent tax levy increase, 2.1 per cent for existing taxpayers. While they started the night at a 3.52 per cent increase, councillors approved extra spending to put more money into roads this year.
Coun. Shelby Ch'ng was one of eight councillors concerned that should they not put money into capital spending, the city's estimated $17 million annual infrastructure deficit would continue to grow.
"Let's close that infrastructure gap in a measured way," she said.
Mayor Keith Hobbs, one of four councillors wanting to keep the levy where it started Monday night, said tax payers deserve a break this year.
"1.58 is a great number," he said.
But Coun. Paul Pugh said the city needs to maintain its infrastructure.
"We cannot afford to fool ourselves into thinking that keeping taxes low... is sound city management," he said.
Councillors also took the closing of another budget season to remind themselves that most of the budget is due to operating costs.
Budget chair Coun. Frank Pullia said councillors need to remember that decisions need to be made throughout the year.
"I think we have found a good balance," he said of this year's budget.
City manager Norm Gale said administration will be coming to council on operating costs later this year.
"I can tell you operating budgets are tight," he said.
Along with the tax levy increase, water rates are set to increase 3.48 per cent this year.
