City of Thunder Bay proposes 2025 budget with a 3.7% tax levy increase

The City of Thunder Bay has released its proposed operating budget for 2025, which — if approved — would see a municipal tax levy increase of 3.7 per cent.

The proposed tax-supported operating budget totals $385.1 million, with a municipal tax levy of $217.4 million — an increase of $7.8 million — over last year, according to the city.

The levy is the amount the city needs from taxpayers to fund services and capital infrastructure programs. Last year's budget saw a 5.4 per cent tax levy increase.

Part of city council's budget mandate was to keep the 2025 tax levy at no more than 3.8 per cent before growth, "for programs and services within the city's direct control."

City manager John Collin said Thunder Bay may be the only city of 100,000 people or more in Ontario, besides Ottawa, that has pitched a tax levy increase below four per cent, he added.

"All other cities of our size are coming in with tax rates significantly more than that," Collin told members of the media Friday morning.

While the city could have justified a much higher rate, given inflation, program and service expansions, and council directives, "the reality is such a budget is not affordable to our residents and our businesses alike."

The proposed budget includes total gross spending of $448.8 million, an increase of $17.8 million (4.1 per cent) compared to 2024.

"The 2025 budget does not include any significant reductions to existing services. It also prioritizes strategic investments in key areas that will support sustainable growth, enhance our quality of life, and strengthen Thunder Bay's position as a thriving and vibrant city."

While budget submissions from agencies, boards and commissions (ABCs) in town were $1 million higher than the city's budget mandate, the report says "a significant increase in the Ontario Municipal Partnership Fund enabled the overages from the ABCs to be absorbed and allowed for additional enhancements in the 2025 budget."

The city's capital budget has already been approved.

How property taxes are spent

Personnel services make up about two thirds of the budget, followed by materials – which includes costs associated with the goods, supplies and consumables needed to deliver programs and services, city treasurer Keri Greaves explained.

The proposed budget document includes a breakdown of how property taxes are spent on city services.

According to the chart, the biggest chunk goes toward police services, at more than 22.1 per cent. Next is fire rescue services at 14.5 per cent and general government at 11.5 per cent.

"The rising cost of emergency services at large is a growing concern for all municipalities in Canada," Collin said when asked about policing costs.

"We need to address these rising costs and not necessarily [focus] on reducing them, but perhaps finding a different funding model with help from other levels of government to help us fund those rising costs."

New investments aimed at enhancing services

There are a few new service enhancements in the proposed operating budget aimed at supporting growth and service delivery, said Greaves. These include:

• Investing $1.7 million in projected assessment growth revenue into a newly established Assessment Growth Reserve Fund to support future growth opportunities. 
• Allocating $1.2 million towards the unsheltered homeless response including staffing, safety and security, and operation of the temporary village.
• Increasing the contribution to the Superior North EMS Reserve Fund to enable timely replacement of ambulances.
• Contributing $1.1 million to create a Solid Waste and Recycling Reserve Fund to help manage future levy impacts of the provincially mandated organics (green bin) program.

Superior Morning4:50Marc Doucette: Proposed Budget

The City of Thunder Bay will be releasing its proposed budget today.We took to the streets to hear how city residents would like their tax dollars spent.

Public engagement and timelines

A series of meetings and consultations are being held before the budget is approved by city council, including an in-person question and answer session on Jan. 22 at 6:30 p.m. ET at the Italian Cultural Centre.

A public survey on the operating budget is also available on the city's website until Feb. 4.

"A community that is fully engaged makes for stronger decisions. When it comes down to it, the city is here for its residents, and we need to hear your feedback so that we know we're on the right path," Greaves said.

There were conscious efforts this year to make the budget documents more accessible to the public by incorporating fewer numerical charts and more infographics, he said.

"They can actually pick up and over the first, say, 15 pages — with not even that many numbers — understand what's happening in the community, where the tax dollars are going and the impact on them through the budget," Greaves said.

Other upcoming events include:

• Jan. 28: Long-term financial overview at council chambers at city hall, starting at 6:30 p.m.
• Jan. 30, Feb. 3 and Feb. 5: City council reviews the proposed operating budget at council chambers at city hall, starting at 5 p.m.
• Feb. 10: The budget is scheduled to be ratified by city council at council chambers at city hall, starting at 6:30 p.m.

More information about the budget process can be found on the city's website.