Tax hike higher than expected, council may review services

Up North6:21Thunder Bay residents face tax increase

Taxpayers in Thunder Bay may face one of the biggest increases they've seen in years.A proposed rise in taxes for Thunder Bay is even higher than first reported, city councillors learned at their Tuesday night meeting.

• Thunder Bay city budget proposes nearly 5.7% tax levy increase

The hike now sits at about 6.3 per cent, after some adjustments from administration. Now, some on council want to put all services under the microscope in an attempt to bring that number down.

Councillor Rebecca Johnson perked up when she saw a core services review mentioned in the city's budget documents.

"We have been talking about this for at least six years,” she said. “Does this mean we're really going to do something about it this year?"

Johnson said the city could look at closing a golf course or daycare to save money.

The city's budget manager, Lynn Martin, said council has to change how it spends, as it's put too much into capital, and squeezed operations.

"Clearly this trend with the use of reserve funds to assist with the fiscal challenges that we've referred to previously in the presentation, are not a sustainable option for dealing with future challenges."

City manager Tim Commisso said council has two options: spend more and maintain, or find ways to cut.

"We're trying to provide all of these services [and] we're at the point where ... we have to look at increasing some of the funding."

Council will get its chance to propose any budget changes, starting Feb. 10.

Commisso noted that making cutbacks to services will have a significant impact.

"I honestly believe, when you're talking in the range of $1.2-$1.5 million, to find that in services you have to look at the level of services,” he said.

"Reducing our cost means cutting staff, and trying to continue to provide the same level of service. You know, I don't foresee the community accepting of reductions in service."