THUNDER BAY — City council set a course for a historically high tax hike in 2024 on Monday, in a meeting that stretched past midnight and was marked by the dramatic resignation of a senior staffer.
Council is now set to take a brief summer hiatus, with its next scheduled public meeting on Aug. 14.
Council targets 6% tax hike in 2024
Residents could face the largest municipal tax hike in Thunder Bay’s recent history in 2024 after council approved targets for next year’s budget.
Council directed administration to prepare a budget with a tax levy increase of 6.1 per cent (5.5 per cent after growth), and user fee increases of at least five per cent.
Senior staffer resigns over treatment at council
Tracie Smith, the city’s director of strategic initiatives and engagement, made a dramatic exit from her role at Monday’s meeting.
Smith cited councillors’ criticism of a strategic plan developed by her office in brief remarks announcing her resignation.
She had been one of the city’s most senior staff in the role, overseeing the municipal government’s communications, public engagement, and Indigenous relations work.
Sale of Hillcourt Estates still on the table
A controversial proposal to sell the city-owned mobile home park Hillcourt Estates remains on the table after council requested further information on the possibility Monday.
Council made the decision on a narrow 7-5 vote after a debate charged with concerns over the availability of affordable housing in the city.
Residents of the 89-unit park, which turns a profit of $170,000 a year for the city, will now wait until March of next year to learn whether council will move forward with a sale.
Projected 2023 deficit leaps to $3.4M
The city may need to draw millions from its reserves to cover police overspending and an expansion in WSIB coverage in 2023.
A financial variance report presented to council on Monday projects the city will finish 2023 with a $3.4-million deficit.
The main factors behind the projected deficit are police spending that is trending well over budget and expanded WSIB coverage for historic cancer claims by firefighters.
City seeks millions from federal housing fund
The City of Thunder Bay is applying for up to $50 million through the federal Housing Accelerator Fund, hoping to use the funding to incentivize construction of over 1,000 new housing units.
Staff presented a more modest estimate of “in the order of $20 million” for what the city could receive, saying it’s uncertain how much could be approved.
The funding would largely be used to provide financial incentives to build affordable and infill housing, including new units within existing homes, and to hire an affordable housing navigator.
The application deadline is Aug. 18. Administration was directed to report back to council by Aug. 14 with a finalized application for review.
