THUNDER BAY -- The city thinks it needs around $22.5 million from taxpayers over the next three years.
Council will hear Monday that an average of 4.2 per cent increase each year will be needed over next three years for its tax levy.
It estimates that the city will see around one per cent growth in each of those years meaning the impact to existing taxpayers would be around 3.2 per cent.
Every one per cent increase to the municipal levy, how much revenue the city generates from tax, is roughly $1.7 million.
Budget chair Coun. Frank Pullia said council asked for the projections after the city's tax base was hit hard by industrial property reassessments. It will also help council be more prepared when budget deliberations begin in February.
"Let's plan ahead so we don't have to go to council and try to negotiate item by item at the last minute so this is basically an upper limit over the next three years," he said.
Council will be presented with four options Monday, including a choice to defer capital projects to get that levy down to 2.5 per cent.
"Given the circumstances it's a realistic assessment but I think we need and can do better than that (3.2 per cent). I think council should wrap its head around affordability for the tax payers and strive to continue to look for efficiences and the way we run the business," he said.
Around .7 per cent of that levy will go toward certain capital, including the enhanced infrastructure renewal funding, with another .3 per cent heading to stabilization measures.
The other 3.2 per cent will go to the city's net operating budget.
Note to readers: This story corrects an earlier version that indicated the city would require $20 million more from its taxbase by 2018.
