THUNDER BAY – City council steered clear of major cuts to public services as it approved the 2020 municipal budget late Wednesday night – but still managed to wrangle the overall tax levy increase below two percent, after growth. Thunder Bay’s looming infrastructure deficit also got some attention, with council diverting about $250,000 from its operating budget into capital spending.
Those moves don’t come without consequences, however: spending cuts will mean reductions to certain services, as the city trims budget lines and cancels some planned hiring. And the decisions won’t be final until council ratifies them at a Feb. 10 meeting, after seeking public feedback.
The public library, botanical conservatory, and sister cities committee – services councillors debated cutting – all escaped unscathed, at least for now. Decisions on the conservatory will wait until March, when council expects a report on the facility.
Council touched few of the more contentious options on a list of more than $2 million in potential savings, prepared by administration at council's direction. Several dozen protestors, many from unions representing city workers, had gathered before the meeting at city hall to protest possible cuts to city services and jobs.
The draft budget put forward by city administration at the beginning of January included an after-growth hike of 2.32 per cent to the total municipal tax levy. The proposed increase to the city budget was actually 3.17 per cent, or more than $6 million, but the difference is expected to be made up by growth in the city’s assessment base.
After four budget planning meetings, council reduced that tax levy increase to 1.89 per cent, after growth (2.73 per cent before growth). That went some way to addressing concerns among several councillors that the city’s tax hikes are unsustainable. The city will find the savings through a number of relatively small reductions to spending.
Council voted to freeze hiring for city vacancies, but with a broad list of exceptions for essential services like most transit, health and safety, and emergency services positions. They cancelled new hiring in the roads and parks departments, and in long-term care at Jasper Place. And about $100,000 was saved by eliminating a management position through attrition.
Those cuts could reduce or slow down some city services, but city administration reassured council the reductions would not be severe.
Many other spending reductions for 2020 came through simply adjusting budget lines that had generally been underspent in previous years. Council also took $100,000 from planned spending on a reserve fund for the Whalen building, with many councillors arguing it would be better to sell the facility.
While much of the savings council found went to reduce the tax levy increase, $250,000 was diverted into infrastructure maintenance. That will help chip away at the city’s estimated $22 million infrastructure deficit.
Members of the public can give feedback at a Feb. 3 meeting, and the budget will be officially ratified Feb. 10, when councillors will have the chance to make last-minute adjustments. Citizens can learn more about the budget, and how to participate, on the city’s website.
