Thunder Bay residents avoid extra tax hike

City councillors in Thunder Bay have decided to use reserve funds to balance the budget this year.

Bridging a $6-million budget gap — created by a harsh winter that forced up plowing costs, along with higher-than-anticipated fuel costs and unexpected legal fees — was the main topic at council’s meeting Monday night.

Councillors Paul Pugh and Iain Angus said they felt the city should increase taxes by one per cent to help offset the overrun.

Angus asked administration if an increase will come next year.

"Will we just be putting off the inevitable? To ensure that we have a large enough snow removal reserve and large enough legal reserve … in the 2015 budget, we're going to have to do it anyways,” he said.

Although there was no definite answer, many councillors said they did not want any increase.

Mayor Keith Hobbs said the city is doing everything it can to reduce costs.

"When people like the Chamber of Commerce came out and [said] we're not looking internally, we are. You do the best with what you have at budget time, and I think we did a great job at budget time,” Hobbs said.

“I don't want to see that go up another per cent."

Coun. Joe Virdiramo also opposed raising taxes.

"We went through a budget process; we came up with a tax figure. We proposed it, and now we're coming back and saying we have to increase the taxes by one per cent. I can't support that."

Council will also look at reducing plowing costs for next winter, by re-defining how often city streets are plowed.

How council will cover a $5.73 million shortfall to balance the budget:

• Pull money from city’s winter control reserve fund.
• Eliminate non-essential hires and increasing some user fees, mainly at the Canada Games Complex.
• Re-evaluate snowplowing by Aug. 31.
• Reduce weed control program funding by $40,200.
• Reduce street sweeping funding by $20,000.
• Eliminate rubbish removal program, which will save $102,900.
• Remove additional security at parks to save $20,800.
• Stop expansion at youth services and reduce lifeguards/instructors at Canada Games Complex to save $89,000.
• Take away a customer care job at Thunder Bay Transit and keep specialized transit hours the same (no expansions) to save $92,100.