THUNDER BAY -- A proposed 5.68 per cent increase in the tax levy is a starting point, city administration says.
The last four years have seen an average of 2.1 per cent but city manager Tim Commisso said with winter control, legal and insurance costs and reassessment eating into tax revenue growth, it would be difficult to see that kind of a number this year.
"Probably the biggest factor this year is stabilization," he said.
It's unknown who will pay or how much for that proposed levy increase as council sets its tax policy in May. But Commisso said business tax has been reduced and it might be time to shift some of the levy back onto that class and off of homeowners.
City council will be presented with options to reduce the levy to around 3.99 per cent, saving around $2.8 million, without any service reductions but as always, council can choose to cut more as the process goes along. While the city has seen unprecedented levels of capital spending over the past few years through its enhanced infrastructure renewal program, this year spending from that program will stay at last year's level, around $9.5 million.
"Maybe we've spent a little too much (on infrastructure)," mayor Keith Hobbs said. "We'll be judged on that at some point but I'm very proud of what we've done."
Last term council didn't have much of an appetite for reductions but Hobbs said he wants to see the levy down to 3.5 per cent by the time council ratifies the budget in March.
"I think this year we have to really go there," he said.
There are seven new hires proposed in this year's budget. Hobbs wants council to really look at whether the city needs all or even any of those right now.
He also wants the police and fire unions to play ball, as they've done in the past, with contracts coming up this year. It's not unheard of for those members to accept less and have it made up to them when times are good.
"We'd really appreciate it as a council," Hobbs said.
Budget chair Frank Pullia said this year is going to be a challenge for council and it has to decide how far its willing to go to contain costs.
"There are so many challenges coming all at once," he said.
Although a zero per cent budget is unreasonable, the city needs to to better at finding efficiencies he said. There's a three per cent increase in water rates along with the proposed 90 per cent sewer surcharge and people are feeling squeezed Pullia said.
The budget is available on the city's website.
