THUNDER BAY -- Despite hours of debate and numerous amendments, city council shaved less than a per cent off of its budget before passing it early Tuesday morning.
Council left chambers just after midnight with this year's tax levy increase at 3.83 per cent, or 3.18 per cent without growth. They came into the evening with the levy at around 4.64 per cent, or 3.99 without growth.
Mayor Keith Hobbs said it's only the second time in six budgets that the levy has come in over two per cent. Everyone knew going into the budget process that this was going to be a "stinker year" and if people want to crucify council, specifically tbnewswatch commentors, then so be it.
"I really don’t give a damn because we've done a damn good job,”
he said just before council voted 9-4 to ratify the budget.
It's one year in the life of a city that has been pretty responsible given the circumstances Hobbs said.
Despite administration's caution that taking capital spending and using debt instead will only make the city pay more to top-up its capital funding next year, council decided to debenture $734,000 for part of the Golf Links Road project.
"It doesn't get any better than this in terms of if we need to borrow," Coun. Frank Pullia said when it was learned that the city can currently borrow money at 1.88 per cent.
A last-minute amendment from Coun. Linda Rydholm took $200,000 out of the facilities and fleet budget for vehicles judged as a medium-priority for replacement.
Around $180,000 was taken out of the budget after council learned that funding for its $2 million May Street project had been turned down by the province. Administration found money in its existing budget by deferring other projects, including Donald Street. Since it wasn't going ahead, Coun. Joe Virdiramo suggested the city hold off on upgrading its bus shelters at city hall as part of a plan to make it the permanent South side bus terminal. Council agreed.
Another $194,000 was cut as part of a plan for the city to hire new staff. While some councillors didn't like the idea that they didn't know where the money would be taken from, city manager Tim Commisso said it would likely be through attrition.
That amendment was the only one of many suggested by Coun. Rebecca Johnson that councillors accepted. On her idea to cut the Sister Cities' out-of-country-travel budget, Coun. Aldo Ruberto said the initiative's entire budget is $25,000 and is rarely spent. The return on investment for that money, especially for attracting foreign students to Lakehead University and Confederation college alone is worth it Coun. Brian McKinnon said.
“I’ll tell you right now the economic return for our city is substantially more than our budget over the year," McKinnon said.
Ideas, like a plan to close Strathcona Golf Course, were shot down because more information would be needed before council could make a decision. After several unsuccessful amendments, Johnson decided to hold off on more controversial topics like getting the city out of the daycare business.
"This is plucking things out of the air,” Coun. Trevor Giertuga said. “This is ridiculous. I cant believe after this many years we’re still doing it this way.”
This way is what Coun. Andrew Foulds referred to as grasping. Councillors said last-minute calls to make budget cuts weren't the way to go. When council was told it would need to remove another $1.94 million to get the levy increase to two per cent, Rydholm wanted administration to find the savings somewhere in a reserve fund. That amendment was also lost.
“Two per cent is a made up number," Coun. Iain Angus said. "Why isn’t it zero why isn’t it five?”
Coun. Joe Virdiramo said it's unfair to administration that after several long nights of budget meetings over the past month, council just decides it wants the levy at two per cent. If that's what it wanted, council should have directed administration to bring back a budget at that per cent.
“That’s not the way it should be. We should be upfront," he said.
