THUNDER BAY -- As budget chair, Coun. Frank Pullia is hoping city council will find other options beyond raising taxes and cutting services this year.
Despite nearly half of the city's industrial tax base disappearing in the last decade, provincial transfer payments being reduced and reassessment eating any growth new tax revenue might bring, Pullia said the city has managed to double its infrastructure spending, with $12 million a year on roads alone.
That's going to continue but council faces some tough options during upcoming budget deliberations.
"Revenue is down, cost is going up," Pullia said.
"We don't want to increase taxes more than we absolutely have to. There are other options."
Tax increases over the past few years, while not out of line, have combined with climbing water rates to push the city's affordability index over the provincial average.
People are feeling the pinch and its up to the city to find another way, Pullia said.
"We need to start looking at ways to get our own house in order in terms of how you're running the business and where are the areas we could save money. Are we doing things as efficiently and effective as possible and that kind of review does not happen in one week, one month," he said.
"We're not going to solve all the problems in one year."
Thunder Bay is not alone in being hit by provincial decisions. Along with tax reassessments, transfer payments are dropping around $1.5 million a year. Pullia wants to look at other cities to see how they've dealt with those realities.
There will be options though for cutting services in the budget, the proposed version is expected at the end of the month.
"That's going to be the big debate we're going to have," Pullia said.
"There are options but will council have the will to do that I don't know."
In the past, public consultation meetings for the budget have only seen a handful of people making recommendations. Pullia said the city has to do more to get people engaged but also understand the decisions that are being made.
"The community has to be part of this discussion," he said.
