THUNDER BAY – Thunder Bay's city council left large chunks of the proposed 2021 budget untouched Thursday, as it reviewed sections on development and emergency services, police, and parking.
Councillors spent only two-and-a-half hours deliberating at the second of four budget review meetings that often stretch long into the night, making no major changes – though one was hinted at.
The increase to the city's tax levy remained unchanged after being trimmed to 1.93 per cent (1.69 per cent after growth) during the first review meeting.
Councillors did, however, approve the elimination of several hundred thousand dollars in proposed capital spending at the Parking Authority.
Bigger changes could be in store before council ratifies the budget on Feb. 8: Coun. Aldo Ruberto declared he would move a motion later in the buget process to sell off the city’s two parkades, perennial money-losers subsidized with revenue from on-street spaces, lots, and fines.
“That way, the revenue we get from the meters will actually go to help lower taxes, and we won’t have to pay for maintenance and repair for those things,” he said.
Mayor Bill Mauro had raised similar concerns during last year's budget process.
Maintaining the parkades cost the city an average of about $380,000 a year, according to a 2020 memo to council from Mark Smith, general manager of development and emergency services that considered five previous years of data.
The Victoria Parkade in the south end accounted for over two-thirds of the total losses, with its revenues covering only about half of its operations and maintenance costs. Revenues at the Waterfront District Parkade in the north core, meanwhile, covered about three-quarters of its costs.
However, Smith recommended against selling the assets in his 2020 memo, noting the cost to demolish the structures would exceed their land value, and closing them could strain surrounding parking resources.
Instead, the city should focus on reducing losses, he recommended, partly by gradually increasing parkade fees.
The Parking Authority is also working with engineers to extend its maintenance terms, said manager Jonathan Paske, which would save money by stretching upkeep over longer periods.
He was hopeful those steps could see the parkades break even within years, though Smith cautioned that might not ever happen.
A majority of parkade users are employees of surrounding workplaces, Ruberto pointed out, largely from St. Joseph’s Care Group in the north, and the city itself in the south.
“We’re taking the parking revenue we’re getting on the street to subsidize parking for either St. Jo’s or the employees at the city,” he said in comments directed to Paske. “Does that make sense to you?”
Most councillors refrained from weighing in on the matter Thursday, though Coun. Albert Aiello said he, for one, agreed.
“I don’t think we should be in the parkade business,” he said. “It’s a losing venture, and we’re trying to save money.”
Ruberto said he would wait to move a motion on the matter until council receives further information from administration on potential savings at the parkades.
With council’s approval, the Parking Authority also reduced its 2021 capital spending by about $560,000, accounting for delays to parkade rehabilitation work caused by COVID-19 and budget constraints.
Because the Authority finances that work through its own savings and borrowing power, the change had no impact on the tax levy, but will leave more funds available for future improvements.
Councillors made no moves Thursday to modify an allocation of just over $47 million requested for the Thunder Bay Police Service in 2021.
That's reflected as a 2.5 per cent increase over the 2020 amount, although it's actually closer to 4 per cent higher when accounting for negotiated salary and benefit increases.
