THUNDER BAY -- The city is expecting to increase its tax levy by at least four per cent until 2020.
Assuming it sees $2 million in growth next year the rate, which includes increases to the enhanced infrastructure renewal program that was held this year, would be around 4.8 per cent. With projected growth of $1.9 million per year after that, the rate would eventually head to four per cent by 2020.
City council also heard during its longterm financial plan Tuesday that its reserves, totaling around $115 million, have been hit hard on the rate supported side, something administration said is not sustainable.
The city will also take on a total of around $200 million in debt by next year, which is mainly a good way to finance longterm capital projects. It's spending around $22.5 million on that debt every year, something Coun. Rebecca Johnson said might be spent elsewhere.
But Coun. Aldo Ruberto said it's always a struggle deciding whether to use debt to pay for projects or save up and build later. With construction costs on the rise, by the time the city's ready to pay for a capital project it may end up paying more than the interest would've been in the first place.
Council also heard that around 17 large properties are expected to hit the city tax roll this year, which will drive up assessment growth.
