The City of Thunder Bay budget for 2020 is starting out with a proposed total tax levy increase of 3.17 percent. After certain assessment adjustments and other factors, the city says that figure is 2.32 percent.
The city says overall, the proposed 2020 municipal tax levy of $200.2 million represents an increase of $6.1 million over 2019.
Officials explain the major drivers in the proposed 2020 Budget include:
o Expansion and increased expenditures to Police Services – $1.9 million
o Expansion for Next Generation 911 – $0.4 million
o Reduced annual funding through the Ontario Municipal Partnership Fund – $0.7 million.
o Increase to fringe benefits (CPP & LTD) – $0.6 million
o Final transition of Solid Waste Diversion/Recycling costs to tax supported operations – $0.6 million
o Increased debenture payments (Police / Fire Radios) – $0.4 million
o Other expansions including City Solicitor, and costs associated with new assets – $0.4 million
o Increased levy from Thunder Bay District Health Unit – $0.2 million
o Increase to the capital budget funded by the tax levy – $0.2 million.
The proposed budget also includes a 4 percent jump in water rates over last year. For the average household, the water rate hike represents
an annual increase of $25.72.
In addition there is an complementary increase in the wastewater surcharge representing an increase of $23.15 a year for the average household.
The city says the 2020 budget also has $46.4 million in infrastructure spending that includes:
o Roads and roads related projects and Bridges and Culverts – $18.2 million
o Fleet and equipment replacement – $5.0 million
o Renewal of facilities – $3.2 million
o Transit Improvements – $5.3 million
o Storm water management – $2.3 million
o Parks – $3.2 million
o Police Services – $1.4 million
The tax levy increase is usually slightly higher than the other number the city likes to talk about, which they call the tax increase after growth, where the city accounts for money it expects to get from new buildings and assessments.
As an example, last year the total tax levy increase was introduced at 3.35 per cent while the after growth number was 2.95 percent. When it all came down to final approval, the actual increase, with growth, was 2 percent and 2.3 percent before growth. That meant the average homeowner saw their tax bill increase about $70.
