Thunder Bay’s financial situation is in relatively good shape, according to the mayor.
Bill Mauro explains there are a number of reasons for this, which has lead to a roughly 2% tax levy increase, one way city hall is trying to hold spending steady.
He points out he wants city staff to find ways to keep that number low, while city council considers using three areas of money against an $8.4-million COVID-19 deficit. “2020 year end surpluses… the second part was Stabilization Fund, that has about $12.5 to 13-million in it currently, plus the surplus of $1.7-million from the provincial, federal Restart money.”
The mayor adds he tries to explain city spending amidst many concerns as often as possible.
He also touches on the $20-a year payment, per household, on the multi-use indoor turf facility, which he says will not start until 2023.
“So the $20 is the cost of the debenture [loan], to finance the remaining part of the project beyond the $15-million we already had in a reserve fund tucked away. That reserve fund has no tax implications,” says the mayor.
He adds there is time between now and 2023 to seek more government funding.
But, when 2024 arrives, there will be another $3.9-million annual interest payment freed up when a 20-year old loan is retired. “There’s $4-million of cost that the city’s been making annually for 20 years, that comes off your books.”
Mauro credits the city for that 2-percent tax levy next year, calling it probably unprecedented.
To listen to our full interview with Mayor Bill Mauro, as he again explains how money is used, click below.
