THUNDER BAY – Increased expenditure of nearly $2 million for the Thunder Bay Police Service and reduced provincial funding has pushed the city’s proposed 2020 municipal taxy levy up by more than $6 million over last year's total.
The city’s proposed 2020 capital and operating budgets were released on Friday morning and include a municipal tax levy of $200.2 million, an increase of 3.17 per cent.
The increase after growth is $4.5 million or 2.32 per cent.
The number is subject to change through the budget process.
“Those numbers do not reflect the expected increase of property tax for property owners,” said Thunder Bay city manager, Norm Gale. “There’s a series of decisions that are made downstream that are not limited to council decisions over budget deliberations. And this includes the tax rate that will be set, the valuation of properties that is set by MPAC, and this will be better understood and known in May.”
“Where this budget lands will be determined by council,” Gale continued. “Council will make a series of decisions and a final decision. That is what the process is for the next six weeks.”
One of the most significant drivers of the proposed 2020 budget is an expansion and increased expenditure of $1.9 million to the Thunder Bay Police Service.
“Clearly the costs for police services have been increasing substantially every year for the previous half-dozen or 10 years,” Gale said. “Those increases are greater than increases for other services, including other emergency services like EMS and fire. The cost of policing are increasing exponentially and faster than any other service we are providing, so it is a significant challenge for us on the budget side.”
Gale referred to the growing issue of guns and gangs in the city and the strain it is placing on the police service. The northwest missing out on significant provincial funding to combat guns and gangs, which largely went to the Greater Toronto Area and Ottawa, also presented challenges.
“The city is doing a lot,” he said. “There is a significant amount of advocacy in Toronto and Ottawa to ensure that provincial and federal decision makers are aware of our need for help.”
Reductions in funding from the provincial government has also placed strain on the upcoming 2020 budget, including the Ontario Municipal Partnership Fund, which has been reduced by $700,000.
“The city of Thunder Bay like every municipality in Ontario relies on government funding,” Gale said. “We are grateful and we are happy we get the funding we do, but that funding is decreasing. We are getting less funding now than we used to and that will cause changes on our end for what has to happen. Different options are the municipal property owner will pay more to maintain status quo or we decrease something to maintain the tax levy.”
Gale is calling this a status quo budget, which was requested by city council in spring 2019 and means there is no significant changes or reductions to service levels, programs, or infrastructure projects.
The proposed capital budget of $68.7 million, which is down from $75.3 million in 2019 includes the continuation of a major $4.8 million road renewal project and other projects proposed for the upcoming year.
“Some of the projects that will be undertaken in 2020 include the Balmoral Street reconstruction from Hewitson to Alloy, four new pedestrian cross-overs that are proposed, the Marina Park pedestrian overpass rehabilitation, and $3.2 million is being proposed to the new parks and open spaces including playground replacements, trail lighting, and continued emerald ash borer response,” said city treasurer, Linda Evans.
Public pre-budget and post-budget deputation meetings will be held on Jan. 9 and Feb. 3 at 6:30 p.m. at city hall in council chambers. Council’s budget reviews will take place on Jan. 14, 16, 22, and 29, with approval expected on Monday, Feb. 10.
