THUNDER BAY – Provincial funding cuts are expected to open a nearly $4-million gap that would contribute to a status quo city budget coming in with a tax levy increase of more than four per cent next year.
Thunder Bay city council on Monday night was presented with a report, providing projections and outlining a direction for administration for the 2020 municipal spending plan.
City manager Norm Gale, who noted he would be surprised if there is a four per cent hike, said that figure is based on the current state of key budget drivers and doesn’t factor in any work done by administration or decisions of council.
“That does not mean we will come in with a budget of four per cent increase for 2020,” Gale said.
“It doesn’t mean that at all. Administration will do its work in finding efficiencies. This is becoming ever increasingly difficult but this team has a fine track record of finding those efficiencies over the past four years.”
The city has also initiated a program and services review, hiring an external consultant to thoroughly audit the city’s operations.
Gale said a draft report of that review is expected to be presented to council in November, well in advance of next year’s budget deliberations.
“They’re going to be looking at ways – under (council’s) direction – to reduce the budget and to mitigate any budget increases that affect the property taxpayer,” Gale said. “What I recommend that we don’t do is send administration away concurrently to do the same type of work…should council direct us to do it.”
Coun. Peng You (At-Large) repeatedly stressed that he’s tired of the city doing the “same old, same old” every year
“To me, this is the opportunity for the City of Thunder Bay to wake up,” Peng said. “If we need to sacrifice, we need to sacrifice.”
The budget projection – which would set a gross tax levy increase of more than 4.5 per cent – is based on no significant reductions or expansions to city programs or services, including maintaining current capital spending.
Funding cuts made by Ontario Premier Doug Ford’s Progressive Conservative government would have a hit of nearly $4 million on the city, including slashing Thunder Bay’s allocation to the Ontario Municipal Partnership Fund by more than $1.4 million and reductions to funding grants totalling nearly $550,000 for Superior North EMS and long-term care and senior servces.
Adjustments to the funding formula for the Thunder Bay District Health Unit – cutting the provincial share to 70 per cent from the previous 75 per cent – results in an expectation for the municipal requirement to increase by $1.4 million. As well, changes to early years and child care administration funding through the Thunder Bay District Social Services Administration Board is forecasting costs to increase by $580,000.
Coun. Mark Bentz (At-Large), the city’s budget chair, expressed concern about the city having to fill in the gaps left by decisions made at Queen’s Park.
“They’ve made some budget directions here and decisions and I hope it’s not our intent to backfill all of those changes they’ve made and download that on the property taxpayer,” Bentz said.
Council on Monday also received the second-quarter variance report for this year's budget, which is projected to finish with a $215,000 surplus.
