The City of Thunder Bay has introduced a proposed budget of $526.6 million for 2026, featuring a capital plan of $23 million that was approved by the council last month, along with a municipal tax levy increase of four percent.
This capital budget is part of the city’s overall financial strategy for 2026, which details funding for infrastructure, facilities, and long-term municipal assets in addition to everyday operating expenses. The total proposed municipal tax levy would rise to $250.4 million, an increase of $9.6 million from 2025.
City council had previously instructed administration to develop a budget that kept property tax increases at no more than 2.6 percent for programs and services directly managed by the city. Although this goal was achieved, increased funding requests from some agencies, boards, and commissions caused the overall levy to go up by four percent.
“City council set a clear budget direction, and administration delivered,” said Keri Greaves, commissioner of corporate services and city treasurer, during her presentation at city hall. She mentioned that the budget addresses rising costs while keeping service levels steady and promoting long-term financial stability.
The approved $23 million capital budget has been included in the 2026 proposal and shows ongoing investment in municipal infrastructure and assets. Capital spending will be funded through a combination of reserves, debt, grants, and other financing methods; it’s separate from annual operating expenses.
For homeowners, the city estimates that the proposed budget would lead to a property tax hike of about $72 for each $100,000 in assessed value for single-family detached homes.
The suggested operating budget includes funds linked to various capital initiatives like preparations for opening the Tbaytel Multiplex, continued implementation of the Autocart waste collection system, and execution of the city’s Smart Growth Action Plan.
City manager John Collin remarked that the budget strikes a balance between fiscal responsibility and ongoing investment.
“It supports core services, invests in safety and service improvements, and positions the city to respond to future challenges while remaining competitive with other municipalities,” he noted.
Public consultations on the proposed budget are currently taking place. Residents can view budget documents and fill out an online survey through the city’s website until January 29. City staff will also conduct pop-up engagement sessions at Thunder Bay Country Market on January 17 and during Winter Fundays at Marina Park on January 25.
Council is expected to consider feedback before finalizing the 2026 budget later this month.
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