City council in North Bay is holding budget meetings this week, with the city’s early budget increase estimated at 5.5 per cent.
Councillors met Monday to discuss the draft budget and examine the cost pressures behind the proposed tax hike.
Much of the increase, a budget report said, is due to the “strain” of budget increases from outside agencies.
“City operations has resulted in an overall levy change of 1.74 per cent and service partners 3.76 per cent, to present a total levy increase of 5.50 per cent,” the report said.
“The proposed budget includes a transfer from the tax stabilization reserve to partially offset overall budget pressures and to support a lower levy for taxpayers. Modifying last year’s phase-out plan, the enclosed budget includes a transfer from the tax stabilization reserve, reflecting a reduction from the 2024 amount.”
Service partners driving increase
The service partners include outside agencies such as police, fire and the library. The police service increased its budget by 12.79 per cent in December.
In dollar terms, the city’s operating budget is 116,012,862, an increase of $6,050,862 compared to 2024. That maintains existing service levels and could be decreased or increased if council votes to add to service levels or implement cuts.
“Of the total amount of property tax revenue, 53 per cent is allocated to city operations, while the remaining 47 per cent of the funds support the budgets of the city’s essential service partners,” chief financial officer Margaret Karpenko said in the budget overview.
“These tax dollars ensure the continued delivery of vital programs and services, contributing to a high quality of life for residents while maintaining the city’s long-term financial sustainability.”
Major projects planned for 2025 include the ongoing construction of the $63 million recreation and community centre at the Steve Omischl Sports Field Complex, four-laning of McKeown Avenue and Seymour Street upgrades.
Budget meetings continue Tuesday, Wednesday and Thursday evening this week, before resuming March 11.
