THUNDER BAY -- There's not much left for the city to cut unless it want to start looking at service the city manager says.
City council had a look at its long term financial plan Tuesday, which started off with city manager Norm Gale pointing out that around $5.2 million in savings have been found in the operating budget around the corporation over the past five years.
"In the current state my advice to council is that there is little room for more reductions without consideration or contemplation to service levels and service standards," Gale said.
With the past few years ending in deficits Gale said if the higher end of this year's projected deficit hits $1.7 million, it will pretty much deplete the reserves in place to deal with year-end deficits.
"This will limit the city's ability in the future to deal with unfavourable variances," he said.
The city did see more growth than expected this year, the highest assessment year it's had in 15 years. But councillors heard that much of that had to do with properties coming onto city tax rolls early. Because of that, it's had to reduce projected growth next year to one per cent.
Councillors asked how the city could generate more revenue, through lobbying for higher railway taxes, payment in lieu of taxes from post-secondary schools or the always controversial MPAC assessments.
"We have millions of dollars sitting there unclaimed," Coun. Aldo Ruberto said.
This year's growth makes up around 1.94 per cent or $3.3 million of the proposed 5.77 per cent, 9.85 mllion tax levy increase. While the city points out that the levy increase to existing tax payers will be around 3.83 per cent, Coun. Rebecca Johnson said that hides the reality that the city needs to spend around 5.8 per cent more than it did last year. She said it's unacceptable.
"For the expenses to go to that level is really out of hand," she said.
A public meeting will be held Thursday at the 55 Plus Centre.
