Thunder Bay proposes 2025 budget with 3.7% tax increase

The City of Thunder Bay has released its proposed 2025 operating budget, which would see a 3.7 per cent increase in municipal taxes if approved.

According to the city, the proposed tax-supported operating budget totals $385.1 million, with municipal taxes at $217.4 million, an increase of $7.8 million over last year.

Taxes are the amount the city requires taxpayers to pay to fund services and capital infrastructure projects. Last year's budget saw a 5.4 per cent tax increase.

One of council's budget directions was to keep the 2025 tax levy at no more than 3.8 per cent before growth, for "programs and services directly controlled by the city."

Mayor John Collin said Thunder Bay may be the only city in Ontario, other than Ottawa, with a population of 100,000 or more with a tax increase below four per cent.

"All other cities of our size are significantly higher than that," Collin told media Friday morning.

While the city could have justified a higher rate given inflation, program and service expansions, and council direction, "the reality is that such a budget would be unaffordable for our residents and businesses."

The proposed budget's total expenditures are $448.8 million, an increase of $17.8 million (4.1 per cent) over 2024.

"The 2025 budget does not include any significant cuts to existing services. It also prioritizes strategic investments in key areas to support sustainable growth, enhance our quality of life, and strengthen Thunder Bay's position as a thriving and vibrant city."

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While the town's agencies, boards, and commissions (ABCs) submitted budgets that were $1 million higher than the city's budget request, the report states that "a significant increase in the Ontario Municipal Partnership Fund allowed the ABC overage to be absorbed and allowed for additional enhancements in the 2025 budget."

The city's capital budget has already been approved.

Source: https://www.cbc.ca/news/canada/thunder-bay/thunder-bay-2025-proposed-budget-1.7434076