Thunder Bay council ratifies budget with 2.1 per cent tax increase
Councillors add money to municipal budget on final day to boost infrastructure spending
After several meetings worth of discussion, debate and number crunching, city councillors in Thunder Bay have finalized the 2016 municipal budget.
At Monday's meeting, council ratified the budget which calls for existing taxpayers to fund a 2.1 per cent increase in spending over last year. Administration said that works out to an increase of $66.70 for the year on a home valued at the median price of $178,000.
On the final day of budget talks, councillors prioritised spending money on roads, which brought the tax levy increase up from the 1.58 per cent they settled on last week.
"There is no doubt about .... what the importance [is] that citizens place on infrastructure investment," said Coun. Andrew Foulds. "It is year after year in our citizen satisfaction survey the most important thing."
At council's request, city staff presented a list on Monday of additional capital projects not in the budget that would bring the levy increase to anywhere between two per cent and 2.5 per cent. Councillors decided to bundle up all the roadwork options, totaling $890,000, and bringing the levy increase to the final 2.1 per cent number.
That includes work on a stretch of Copenhagen Road and the entrance to Trowbridge Falls, as well as re-paving a number of residential streets.
Levy increase still too much for some
Four members of council voted against the budget — Larry Hebert, Rebecca Johnson, Linda Rydholm and mayor Keith Hobbs — saying that a number closer to the 1.58 per cent increase was more appropriate.
"These are tough times, and I just don't know how you can continue to do it," Coun. Johnson said adding that she's concerned about the effect on seniors, businesses and people potentially looking to invest in the city. Johnson said that she's still concerned about the city adding staff this year.
On the other hand, Coun. Paul Pugh spoke about the need to put money into infrastructure. "We cannot afford to fool ourselves into thinking that keeping taxes low while we don't do necessary maintenance is a sound, responsible approach to city management."
Water rates will also go up by 3.48 per cent this year.