City of Thunder Bay forecasts 6% tax levy increase in 2024

The City of Thunder Bay is forecasting a six per cent, after growth, increase to the tax levy in the 2024 budget.

In a budget directions reportto be presented to council on Monday, the city says a five per cent increase to user fees is also anticipated.

City Manager Norm Gale told CBC News in a statement that the increase is based on "thecurrent calculated projected tax levy based on all known factors, assumptions, and estimates for the 2024 Budget to date."

"If Council directs Administration to target a lower tax levy, this may require a reduction to both service levels and capital investment, in addition to an increase in overall user fees."

The report states every one per cent reduction in the tax levy would require the city to find $2.2 million in net operational savings elsewhere.

"If Council directs Administration to target a tax levy increase lower than the 6.0% recommended, Administration recommends the dollar target be split with 40% coming from service level reductions, 40% coming from a reduction to capital and the remaining 20% coming from even more aggressive increases to user fees," the report states.

However, the report also outlines a number of opportunities for potential savings, including:

• A staff vacation purchase plan;
• An internal anti-idling campaign;
• A convenience fee for credit card use, and
• The reinstatement of a program that allows employees to contribute ideas for further cost savings.

Those initiatives are still being reviewed, or will be underway soon, the report states.

Council has not yet made any decisions regarding the 2024 budget. In his statement, Gale said once the budget directions report is approved, city departments will be asked to submit budgets that align.

In the meantime, administration will "continue to identify efficiency savings to be incorporated into the 2024 proposed budget in an effort to not exceed the targeted tax-supported levy increase of 6.0%."