THUNDER BAY – This is the first day of deliberations for city council's 2024 operating and capital budget.
City manager Norm Gale confirmed that 2023's projected deficit was covered by reserve funds.
“That deficit will not affect the future budgets. That's one of the reasons we have reserve funds - when we have years of surplus, we put that money into the reserve largely. When we have years of deficits we take the money out of the reserve and smooth things out.”
The projected deficit fell to $800,000 in a third-quarter financial variance report released in November.
Staff has proposed to council that in order to support the budget, the municipal tax levy would need to be $231.7 million ($211.5 million operating, $20.2 million capital), which is an increase of $13.3 million or 6.1 per cent compared to the previous year.
2024 Key Budget Drivers
- $2.3 million increase request from Thunder Bay Police Service (TBPS)
- $200,000 increase request from the Thunder Bay Police Services Board (TBPSB)
- $1.7 million to implement approved Program and Services Review recommendations including expansions for the Human Resources Strategy, Digital Strategy, and other expansions including the Affordable Transit Pass Pilot Project, Recreation and Culture Affordable Access Pilot Project, Airport Rebate Program, and provincially mandated Organics Program
- $1.1 million for inflationary increases for materials and purchased services for parts, salt, paint, contracted repairs and maintenance, and snow removal
- A $900,000 one-time use in the reserve funds in 2023 that were not offset by approved service level reductions
- $1.6 million increase for outside and local boards, excluding Thunder Bay Police Service and the Police Services Board.
On the positive side of the ledger, staff have highlighted the following:
- $1.2-million increase in user fees
- $800,000 decrease in insurance premiums
- $1-million increase in the Tbaytel dividend
- $800,000 in the beginning of interest payments from the Synergy North Corporation
- $500,000 increase in other revenue including administrative recoveries and Casino revenue
- $200,000 increase in the Ontario Municipal Partnership Fund allocation
The proposed operating and capital budget includes total gross spending of $538.3 million, an increase of $23.5 million or 4.6 per cent compared to 2023.
The opening night will highlight the following boards and departments:
- Thunder Bay District Health Unit (TBDHU)
- Lakehead Region Conservation Authority (LRCA)
- Waterfront District BIA
- Victoria Avenue BIA
- Victoriaville Board of Management
- Thunder Bay Public Library (TBPL)
- Thunder Bay Police Service (TBPS)
- Thunder Bay Police Services Board (TBPSB)
- Mayor and council
Council will also review the budget on Feb. 1, Feb. 5 and Feb. 7.
The budget is scheduled to be ratified on Monday, Feb. 12.
