Thunder Bay City Manager Norm Gale says the 2023 budget will be historic…and not in a good way.
“This budget…will be the most difficult budget ever faced by a city council in the history of the city of Thunder Bay.”
Currently the city is looking at a 5.58% municipal tax levy increase for 2023, or $12.8 million.
That percentage is what comes after growth, without that growth residents could see a 6.18% increase.
However that number will not impact all taxpayers equally.
“This is the size of the budget increase we are proposing to council, that does not equate to what a property owner will pay,” stressed Gale at a press conference Wednesday morning. “Decisions need to be made over the next six months before that final determination is made as to what a property owner will pay for an increase, and that will vary based on the classes of property and based on decisions that council makes.”
3 out of every 4 budgets City Council will give direction to staff to present them with a budget that comes with a certain amount. But due to the 2022 election that did not happen, as per council policy. Gale says however he gave a directive to staff for this budget.
“I am charged by city council to develop a budget for their consideration, and the direction I gave this year was a 0% increase to all operations and departments with some exceptions.”
Those exceptions include program and service review initiatives that had already been approved by council, wages and benefits, and inflationary increases related to facilities and fleet, such as fuel.
City Treasurer Linda Evans says because of volatility at the pumps, those fuel costs will be covered or at least partially covered by funds in the reserve funds, which sits at $179 million, a number which was revealed by former At-Large Councillor Aldo Ruberto during the November 14th committee of the whole. Currently the budget lists an increase of $500k in fuel. But Evans cautions the concept of dipping into reserve funds for items.
“We do not recommend going to reserve funds for expenses that will exceed a one year period, its just not prudent.”
Elsewhere Evans commended staff for their hard work to find ways of preventing service reductions for residents.
“We’ve managed to keep programs like, the Meals on Wheels, no increase to the cost. Programs that benefit people that are struggling, we really focused on those types of programs to maintain them.”
One of the biggest increases are coming from the Thunder Bay Police Service at $4.1 million, which Gale says the city has no role in cultivating as it is brought forward by the Police Services Board, which is also getting a $300k increase itself, and the Chief of Police.
The budget also includes the expansion of employees for the city amounting to 50.9 new full time equivalent positions or 2.4%.
Departments that will see the majority of those new positions will be Outside Boards such as Police and the CEDC at 23.2, Development and Emergency Services 17.1, and Corporate Services and Long Term Care with 13.8.
Capital projects spending is slated to drop by $5 million or 7.3% to $66 million.
Gale says much of the infrastructure projects in the proposed budget are focused on renewal and life cycle maintenance. But he notes there is some new spending.
- Reconstruction of Red River Road and the Downtown North Core
- New pedestrian crossovers across the city
- New parks and open spaces infrastructure (playgrounds, Prince Arthur’s Landing festival area, Conservatory display area and parking lot, Vickers Park playground, trail reconstruction and continued Emerald Ash Borer response
- Improvements to Canada Games Complex and Fort William Gardens
- Replacement of software for tax management
- Victoriaville Demolition Phase 1
A full and expanded breakdown of the proposed 2023 budget can be found here.
Any residents who wish to comment on the budget can find out how to do so here.
On Tuesday staff will be providing council a long term financial overview presentation.
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