THUNDER BAY — Although it won't exist until the budget is ratified, city staff already have plans for close to half a million dollars in funding from the city's new assessment growth reserve fund.
In a memorandum, which will be presented on Jan. 30, administration will inform council that they have already identified $453,000 in expenditures for growth-related initiatives.
Keri Greaves, commissioner of corporate services and city treasurer, told Newswatch that half of the funding would go toward “professional expertise and other costs to support the development and implementation of the Smart Growth Action Plan.”
The other half will be put toward “legal resources to accommodate the additional workload associated with enhanced housing, development, and growth-related activities,” said Greaves.
The funding will be taken from the city’s new assessment growth reserve fund once council approves the 2025 operating budget on Feb 10.
This first memo begins the conversation between administration and city council about an assessment growth strategy, said Greaves.
Assessment growth refers to additional property taxes collected from new and expanded homes and businesses. The city is expecting to collect just over $219 million in total municipal property taxes this year, $1.7 million of that would come from assessment growth.
Administration is asking council to allocate that $1.7 million to be put into an assessment growth reserve fund.
Traditionally, the assessment growth would be used to reduce the tax levy increase; however, this year Greaves said they are investing assessment growth into initiatives that would help Thunder Bay grow its property tax base.
Administration will be providing a draft assessment growth policy in the first quarter for council consideration.
This policy outlines how the city will manage future growth revenues. As the year goes on, the policy and other growth initiatives will be used to help council make an informed decision on where they would like to invest in smart growth.
