City council has adopted the recommendation of administration when it comes to the Tax Policy Report.
Director of Revenue for the city, Kathleen Cannon and her team made the push ahead of Monday’s council meeting to go with the first choice, which she said is more in line with the long term tax strategy ratified by council in 2019.
The strategy looked at reducing tax ratios for multi-residential, commercial and large industrial classes, while enhancing long term financial stability in effort to achieve greater fairness and relative competitiveness overall.
Cannon noted for 2021, the Municipal Property Assessment Corporation, (MPAC) re-assessment was postponed which means if your property is worth $200,000 in 2021 it will be worth the same amount in 2022.
Also the province reduced the commercial/industrial education tax rate from 0.98% to 0.88% which will result in a savings of $1.67 million for businesses in Thunder Bay.
On February 8th, council ratified the Municipal Tax Levy to sit at 1.83% before growth and 1.60% after growth.
The report can be found here starting on page 83
LISTEN: Kathleen Cannon Outlines The Tax Policy Options
Budget
- The levy for the Thunder Bay District Social Services Administration Board is $167,800 lower than expected
- Council reduced the hit to the stabilization reserve fund by $1,534,200 to fund the $8.7 million COVID impact (that includes recognizing $1.24 million in 2021 Safe Restart funding)
- Insurance costs are $234,400 less than estimated
- $138,400 increase for Canada Pension Plan/Employment Insurance costs
- $149,400 in reduced debenture interest, MPAC levy, Community Youth & Culture Funding Program ongoing
- $30,000 removed for Victoriaville budget for duct cleaning
- $15,000 addition to each organization: Thunder Bay and Area Food Strategy, Poverty Reduction Strategy and Age Friendly Thunder Bay
- $30,000 reduction in Victoria Avenue BIA contribution
- $67,900 removal of proposed transit fee increases
- $207,100 in tax supported electricity savings
- $150,000 removed for an Environmental Assessment for the Northwest Arterial
- $50,000 addition towards new landing docks for the Lakehead Canoe Club at Boulevard Lake
- $9,000 annually to the Infrastructure and Operations Roads Budget for the purpose of increasing the calcium spraying for gravel roads
- $100,000 removed from the Municipal Accommodation Tax reserve fund towards the Thunder Bay Sign project, which has no impact on the tax levy
Reducing The Hit On the Stabilization Reserve Fund
$1.5 million to fund the $8.7 million COVID impact
- Removing property acquisition for Northwest Arterial for $50,000
- Removing one pedestrian crossover for $75,000
- Adding Community Youth and Culture funding program COVID-19 relief for $83,800
- Removing CEDC COVID-19 related meeting costs for $12,000
- Reducing Library budget for $50,000
- Deferring re-opening of cashier counter service for 2021 for $41,000
- Deferring generator replacement at Fire Station #3 for $150,000
- Adding $1.24 million in Federal-Provincial Safe Restart operating funding for 2021
