City projects 6% tax hike in 2024

A 2024 finances instructions report introduced by the City of Thunder Bay projects the city will require to hike the tax levy by above 6% and boost consumer charges by at minimum 5%.

THUNDER BAY — A suggested blueprint for the 2024 city finances indicates considerable tax and user rate hikes will be necessary to incorporate soaring expenditures with no cuts to products and services.

A spending budget direction report that will be regarded as by metropolis council on Monday proposes targeting a tax levy hike of up to 6.6 per cent, or 6 for each cent after development in the draft 2024 budget, as effectively as consumer price boosts of at the very least five per cent.

People targets, which council could choose to modify on Monday, will guideline the draft funds organized by metropolis workers, placing the commencing place for council debate more than the budget early in the new calendar year.

City council has ordinarily approved tax raises at least somewhat decrease than people recommended by team.  

In 2023, administration launched a draft budget showcasing a 6.2 for every cent tax maximize, though council ultimately authorised a 5 per cent hike.

The targets are effectively above raises witnessed about the past 10 yrs, when the normal tax levy hike was 3.2 for every cent, or 2.5 for each cent immediately after advancement.

The premier enhance all through that period of time was a hike of five for every cent (4.4 per cent immediately after growth) this year.

The price range directions report tacitly acknowledges that council seems unlikely to have out most of the $1.5 million in assistance cuts it voted for before this calendar year.

Council has accepted all around $500,000 in cuts so much, with casualties including the sister towns program, film nights, and a decreased playgrounds program.

The rest of the applications on the list of proposed cuts, totalling nearly $1 million in expending, are tentatively again in the 2024 budget, however some could be slice right after council hears the final results of consultations in August.

That paying out would sum to just below fifty percent a percentage level on the city’s total tax levy of around $220 million.

Administration’s proposed targets for the 2024 spending plan believe no other new provider cuts, mentioned city manager Norm Gale.

To obtain those people targets, town departments would be directed to put together budgets with no boosts outside of wages and priorities determined by council.

Amongst the key aspects administration studies are driving increased charges in 2024:


  • Wage and reward improves
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  • In excess of $5 million to implement a new, provincially-mandated inexperienced bin plan
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  • A projected $1.1-million enhance asked for by the Thunder Bay Police Support
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  • A $1-million maximize in town funding of the Thunder Bay District Wellness Unit, a consequence of provincial funding formulation variations
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  • A five per cent improve to tax-supported infrastructure paying, adhering to council plan
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  • Amplified program membership service fees of $490,000
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The proposed price range also would make room for some new jobs prepared for 2024, which include an inexpensive access pilot for transit and recreation, and applying the city’s electronic approach.

The city is anticipated to save practically a million dollars in 2024 as the province transitions responsibility for recycling to marketplace. These discounts are approximated to increase to $3 million a year in 2025 with total implementation.

The spending plan tips arrive amid a fiscal landscape metropolis administration has identified as deeply demanding, citing components like inflation and COVID-19 recovery, unsustainable boosts to police and other crisis solutions, miniscule growth in the nearby tax base, and a “broken” provincial funding formula.

The report notes administration is taking into consideration new suggestions for charge discounts and income technology, like introducing advancement expenses, a comfort price for payments created by credit score card, a workers vacation buy approach, and an interior anti-idling campaign.

The 2024 funds report projects tax improves of 2.86 for each cent in 2025 and 4.28 for each cent in 2026.