THUNDER BAY -- The city needs the province to come through if its budget cuts are going to pay off.
City council unanimously approved its budget Thursday night, with a 3.52 per cent tax levy increase, 1.58 per cent for existing tax payers. Mayor Keith Hobbs called it a pause.
"I think this is a good number and it's something that’s going to give people a break because next year it’s not going to be 1.58 I’l tell you that right now,” he said.
While most councillors were happy to whittle the number down, Coun. Rebecca Johnson said it's the first budget she's approved in 12 years on council, they did it mostly by dipping into reserve funds to and deferring a major capital project.
Council chose to take $2 million out of its rate stabilization reserve fund for the start of a complete overhaul on police and fire radio communications. While that fund has been hit hard over recent years and an expected $1.7 million 2015 shortfall could deplete uncommitted money in it, the reserve fund has millions of dollars in committed money, a lot being used to complete the closure of seniors' homes. Council has been promised by the province that it will be reimbursed for those costs.
"I'm quite confident the province will pay the city of Thunder Bay those real costs," city manager Norm Gale said.
Another $2 million was deferred as the city wants to see if it can get money from the Ontario Community Infrastructure Fund to rebuild the retaining wall on High Street. City head of engineering Kayla Dixon said it's regularly inspected and work can wait for one more year.
"At this point the wall is safe," Dixon said.
While he voted for the budget, chair Coun. Frank Pullia told councillors they shouldn't be congratulating themselves after budget deliberations this year.
"Remember, we cut almost nothing," he said.
"Don't think we did a really great job... We have now just kicked the can down the road again."
Councillors also voted down an idea to bid for the 2021 Canada Summer Games. Coun. Andrew Foulds' idea to take $300,000 out of the city's Renew Thunder Bay fund to pay for the bid was shot down by most on council as a good idea without much hope for success.
"I'm hearing that our chances are slim," Hobbs said.
Coun. Paul Pugh said the city had two strikes against it because it already hosted the games in 1981 and it lacked some key infrastructure.
"We don't have the facilities," he said.
Council will ratify the budget Monday night. A list of options on other infrastructure projects that could be funded now that police and fire radios are funded out of reserves is also expected.
