THUNDER BAY – City council has seen a slight decrease in the municipal tax levy before getting into specifics with the 2024 operating and capital budget.
The new figure is 5.48 per cent after growth (6.07 before growth) after council voted in favour of a list of recommendations brought forward by staff, based on new information that was received since the proposed budget was prepared.
These changes include:
- An increase in the municipal accommodations tax (MAT) revenue by $100,000, to $3 million
- Drawing $298,200 from the capital general reserve fund based on a lower-than-expected allocation from the Canada Community Building Fund ($6,844,100)
- Annual contribution of $150,000 to the Thunder Bay Community Auditorium (TBCA) capital reserve fund from the city’s capital general reserve fund to support their capital planning
- Decrease in the levy from the District of Thunder Bay Social Services Administration Board (TBDSSAB)
- $4,500 partial rink grant for both the Oliver Road Recreation Association and the Current River Recreation Association
- An increase of $200,000 within development services to hire two additional full-time equivalent staff
When it came to growth projections, staff reported that the final 2023 figure was $969,900, approximately $271,300 less than the amount considered in the initial budget direction.
Therefore, staff recommended a decrease in the transfer to the stabilization reserve by $250,000.
Council also heard from outside and local boards, who in total are asking for $1.6 million. That number excludes Thunder Bay Police Service (TBPS) and the Thunder Bay Police Services Board (TBPSB).
There was also a $2.3 million increase request from police as well as a $200,000 increase request from the Police Services Board.
“We want the citizens to understand the budget process, but we certainly also want new councillors to understand all the nuances that are going on here,” said budget chair Mark Bentz.
“The budget is a very difficult document to get a handle of in terms of knowing how reserves are working, the tax levy, grants and user fees. It's a very complex budget for the corporation that provides many different services. I was trying to highlight some of those nuances to the newer councillors as well as the people watching.”
Following the presentation by TBPS, staff did highlight a recommendation to increase the tax-supported operating budget by $250,000 for expenditures, which would have resulted in an increase to the municipal tax levy of 0.11 per cent.
At-large Coun. Shelby Ch’ng requested putting off any decision on that until Feb. 7, which passed.
The Thunder Bay Public Library (TBPL) also sat before council, asking for a 4.5 per cent increase in their budget.
The topic of their master plan was discussed, with Red River Coun. Michael Zussino suggesting adding $150,000 from a one-time reserve fund (capital general reserve fund) to get an outside consultant to work further on a potential Intercity location.
Deputy clerk Dana Earle cautioned council against this decision and pushed them to wait on further information from city staff, which was a request as part of a June 2023 vote.
Current River Coun. Andrew Foulds put forward his own motion to refer that back to administration and get more information ahead of the Feb. 1 budget meeting.
OUTSIDE BOARD LEVIES
- TBDSSAB: Increase of $482,000 (2.8 per cent)
- Lakehead Regional Conservation Authority (LRCA): Increase of $55,400 (3.4 per cent)
- Thunder Bay District Health Unit (TBDHU): Increase of $83,300 (three per cent)
- Victoriaville Centre: Reductions of $236,200 gross and $274,800 net represent six months of operations due to the planned demolition of Victoriaville Centre by July of 2024
- Victoria Avenue BIA: Increase of $2,500 (4.3 per cent)
- Waterfront District BIA: Increase of $21,500 (23.5 per cent)
When it comes to council, there is a request to make the executive assistant to the mayor a full-time position at a gross and net budget impact of $38,300.
Eliminating the sister cities advisory committee, which was approved by council in July 2023, will save $35,000.
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.
Council will also review the budget on Feb. 5 and Feb. 7
The budget is scheduled to be ratified on Feb. 12.
Dougall Media will have more on the Thunder Bay Public Library (TBPL) and the Thunder Bay Police Service (TBPS) in separate pieces.
