The city of Thunder Bay will aim to keep any increase to its 2026 operating budget at 2.6%.

The target for the capital budget is also 2.6% and a 2.1% hike in 2027.

City Manager John Collin says they look at various options to achieve the targets.

“We are going to try to achieve the 2.6% through efficiencies and other methods without significant reductions to services or programs and …..without tapping into reserves,” says Collins.

Collins admits getting to 2.6% will be challenging, and is hoping outside agencies that rely on municipal funding will follow their lead.

Councillor Rajni Agarwal worries about how the city will reach the 2.6% target.

“Going from 3.8% down to 2.6%, it looks great and it saves our taxpayers money, but at what cost?, asks Agarwal.

“If we’re able to make those savings in-house, then that’s one thing. But if it’s going to be the cost of what’s impacting the residents of our community, that’s another thing. I really don’t want to see any more impacts to the community.”

A 3.8% increase was achieved last year, with increases from outside agencies, boards and commissions absorbed into that hike.

Collins doubts that it will be possible this year.

“I do not believe this year, going from 3.8% down to 2.6%, that we will be in any position to absorb overages from our agencies, boards, and commissions,” says Collins.

“If those agency boards and commissions that we do not control that they simply levy us, if they come in at a number higher than 2.6%, that will significantly impact, and that increase will be over and above the 2.6% that we are recommending.”

“I do appreciate each of the agencies, boards and commissions (ABCs) do have their own pressures,” adds Keri Greaves, City Treasurer.

“The reality is that the city is struggling at 2.6%. What we want to communicate to council and to the public is that if the ABCs also achieve 2.6%, then that will be the municipal tax levy increase. If, for any reason, any of the agencies, boards, or commissions are higher than the 2.6%, that will have an inflationary impact on the levy.”

There will be an opportunity for the public to provide input into the budget.

Director of Corporate Finance Andrea Morrison says it will be done through community surveys.

“We are intending to have both a capital and an operating budget survey similar to last year, and we’re intending to not have a separate budget open house like we did last year, ” says Morrison.

City Administration expects to submit the draft capital budget to council in November and the draft operating budget early next January.

The budget should be finalized by early February.