Thunder Bay city budget proposes nearly 5.7% tax levy increase
If Thunder Bay city council approves all the expenditures city staff are proposing, the 2015 budget will require a property tax levy increase of nearly 5.7%. However, administration is offering options that would reduce the increase to about four per cent.
The information — contained in budget documents released this morning at city hall — shows the actual proposed increase for 2015 is 5.68%. City Manager Tim Commisso has presented two "recommended decision packages" that would reduce the budget and drop the levy increase to 3.99%, but that is still nearly double the average annual levy increase during the four years that the previous council was in office.
The first package includes deferring the hiring of a litigation solicitor to 2016, reducing the overall city fuel budget, and deferring the demolition of Jackpine Community Centre, expansion of the fall battery recycling program and the hiring of additional security at Chippewa Park and Trowbridge Falls campgrounds.
The second package includes deferring road work on Roland Street and Black Bay Road, reducing the amount spent on beautification on May Street, and reducing spending on technology, software and the city's website. The plan also includes deferring spending on the city's fleet, delaying planning for a youth centre, not acquiring property for the future Northwest Arterial road, and spreading work on the Marina Park overpass over two years.
The budget includes the creation of 5.5 new full-time-equivalent positions, but that could drop to 1.4 positions, depending on what council chooses to cut.
Other spending increases include more money for bike lane painting, and an additional 4.5 police officers, including an inspector, to work at the courthouse. Another $300,000 is earmarked for a Community Services Facility Master Plan, arising from a future use plan for the Fort William Gardens.
The city has already cut a $1.5 million increase to its enhanced infrastructure renewal program, keeping the balance at $9.5 million for 2015. Administration has budgeted $5.75 million for road repairs this year, with the remainder going to storm water, facilities and parks.
“In the past three or four years we've actually seen some reductions in business taxes. And this year we're recommending that we bring back options that would mitigate any shift onto the residential class,” he said.
“We have some ability to adjust ratios — tax rates and ratios — which could benefit the residential taxpayer as well.”
In email to CBC, Commisso added "There are however 'ranges of fairness' for tax ratios that are prescribed by the Province so there are some limitations on what Council can do."
A number of user fees would also go up under the new budget. They include:
- Transit fares to increase by five cents a ride
- Metered parking to increase by 25 cents per hour, and parkade rates to increase
- Parking tickets to go up by $5.00
- New subdivision fees for developers, and new development fees
- Tipping fees at the landfill to increase by 7%, but the entrance fee remains at $10
- Fees at the Canada Games Complex to average a 1.5% increase
- Ice time rates to go up by 2.5% for prime time
- Boater services fees to increase by 2%
- Meals on Wheels increase of 25 cents per meal
Commisso said the budget this year is a bigger challenge than in recent years. City revenue has been affected by reductions in assessment for some industrial taxpayers and by a reduction in provincial funding.
He also cited the impact of winter weather, legal and insurance fees on the city's operating costs.
Commisso called 2015 "a year of stabilization for the city operating budget."
He said the focus will continue to be on maintaining essential services, infrastructure renewal and being a partner in addressing community development and growing social issues.
While the 2015 budget presents a greater fiscal challenge than in recent years, "there is reason to be optimistic as [the city's] future assessment growth projections remain strong," Commisso said.
Council will begin its review of the budget next week.