Thunder Bay councillors settle on 4.5% tax levy, cutting staff and services

Thunder Bay city councillors closed their budget deliberations Tuesday night with an after growth tax levy of 4.48 per cent – after consenting to a suite of cuts to staffing and services and a one-time infusion of funds from a reserve fund. 

But councillors signaled they were not prepared to cut the tax levy on the backs of vulnerable members of the population, voting down motions to close the 55 Plus Centre on Sundays during the summer, to defer affordable transit and affordable recreation pilot programs for low income people and to eliminate bus service on Christmas Day.

"If it enables people to get for people with disabilities to get to family for Christmas, I'm not about to cut that for $41,000," said Coun. Trevor Giertuga of the motion for bus services.

Council had instructed city administration on Jan. 17 to come up with proposals to get the levy down to four per cent, while also increasing infrastructure spending to combat the city's infrastructure deficit.

Simply put, the tax levy is the amount the city needs from taxpayers to fund city services and capital infrastructure programs. 

Officials presented councillors on Monday with a multi-page list of possible action items that councillors moved to adopt on a piecemeal basis.

Council adopted resolutions to cut the city's travel and training budget by five per cent and to offset the cost of newly created staff positions by eliminating positions elsewhere in the corporation. 

It also directed city administration to find half a million dollars in service reductions – a request that led to a tense exchange between council and city manager Norm Gale.

"What's remaining that's not taken by you is worth $590,000," he said, referring to a schedule of proposed cuts that managers had brought forth, but that council had not adopted.  

"It gives you an idea of what we're looking at and what the scope of this is.  And if you don't find these things palatable tonight, and you don't want to take them tonight. OK. Know what we're coming back with. Because it doesn't get easier."  

Mayor Ken Boshcoff tried to convince council to raise the value of the cuts to $1 million, but councilors voted his proposal down.

Councillors resist further service cuts 

Many expressed trepidation over signing up for even a smaller number of service reductions when they had little say in what they would be.  

"Quite frankly, I don't know you well enough to give you that responsibility," Coun. Dominique Pasqualino told Gale. 

Council did adopt a number of individual proposals put forth by managers, including cutting summer bus service to Chippewa Park, not renewing the lease on the Vale Community Centre, closing the Jumbo Gardens Community Centre, and deferring an additional yard waste collection until 2024. 

It ignored proposals to eliminate plowing of roads and sidewalks on weekends, cancel the Sister Cities program and eliminate movie nights in public parks. 

Coun. Trevor Giertuga's motion to transfer $1 million from the vested property rehabilitation reserve fund to bring down the tax levy invited caution from members of city staff and Coun. Mark Bentz, who said that council would need to find permanent savings to prevent the amount from ending up on next year's tax levy.  

But Giertuga suggested that making the transfer would buy council time to set policy for future budgets and noted that the fund hadn't been touched in five years.  

Councilors rejected a motion to return the budgets of the Thunder Bay Police Service and the Thunder Bay Police Services Board for reevaluation. 

They also voted down an effort by Coun. Albert Aiello to cut the library budget.

"All through this budget discussion we've been very cognizant of the needs and demands that are being put on people in a lower tax bracket," said Coun. Kristen Oliver. "And I think the library certainly… provides necessities for people to have access to things we take for granted, whether it's wifi, warmth, some of the social services that are provided there."

A 'life changing' decision on bus passes

One advocate for low-income people said she was happy that the affordable transit pilot survived council's efforts to find budget savings.

"I was worried it would be deferred until next year. I'm happy it won't be," said Tracey Mackinnon, an advocate for low-income people who lives on money from Ontario Disabilities Support Program.  "[For] people who need the bus, saving on a monthly bus pass is life changing."

Paul Berger, who along with Mackinnon is a member of Poverty Free Thunder Bay, called the decision "very good news."

"We asked [council] not to take from the people who have the least," said Berger. "The fact that this was on the table and that they decided not to cut it – I think it's a very … positive outcome."

But one lower income city resident remained skeptical. 

"It's a better approach," said Karen Rooney of the efforts to protect low income people from service cuts. 

But people like her need more relief.

"The problem is, they're still raising taxes," she said of city council "And for people on low income who pay property tax, it is past the point of being reasonable. They cannot give anymore."