Public deliberations regarding the City of North Bay's 2023 general operating budget begin in earnest Thursday evening at City Hall.
There is much to be decided and some of the figures provided are subject to change but this series of special committee meetings begins with a levy increase of 5.77 per cent compared to 2022. This represents an increase of $5.8 million to nearly $107 million over last year's operating levy of $101.1 million.
See: City of North Bay 2023 General Operating Budget
See also: 2023 General Capital Budget and 2023 Water and Wastewater Capital Budget
The 5.77 per cent starting point does not include proposed service level changes. Among the proposed changes: eliminating a paralegal position ($140,000) and a POA collections clerk (net savings of $44,000); service level enhancement of $25,000 for the summer concert series; increasing on-street parking fees to $1.50 per hour with a minimum of $0.50; and, $5,000 for operations of the Dionne Quints Museum.
These service level changes will be discussed during the special committee meetings that are also scheduled for Feb. 27, March 1–2 and March 6. Council will hold its committee and regular meetings on Feb. 28.
According to the associated staff report, "The operating budget strives to balance various pressures the City must consider on an annual basis including agreements, legislated requirements, contracts, inflation, supply chain issues, capital investments, fuel, utilities, insurance and various service enhancements or reductions."
The report states the finance staff began with a preliminary levy increase of 10 per cent and whittled it down to the current 5.77 per cent through found "cost savings and additional revenues, together with the use of reserves, to reduce the preliminary levy."
Approximately 55 per cent ($3,239,524) of the 2023 levy increase is directly related to service partners. Their budgets "represent services that are funded by property taxes, in whole or in part, but operated directly by various boards and agencies."
Service Partners include the North Bay Police Service, North Bay Public Library, Cassellholme, District of Nipissing Social Services Administration Board, MPAC, North Bay Parry Sound District Health Unit, the North Bay-Mattawa Conservation Authority and the Capitol Centre.
"In December, Service Partners received a letter from the City’s CFO/Treasurer requesting submissions outlining operating budget requirements for 2023," the report states. "The enclosed budget includes approved and projected Service Partner budgets. As with every budget year, the City is holding the risk should Service Partner estimates not be realized or if there are shifts in apportionment."
Approximately two-fifths of the levy increase is related to personnel salaries and wages ($1,102,570), and benefits ($922,728).
The report states, "Personnel costs include 2023 anticipated wages costs, phase-in of annualized positions, and anticipated contractual salary and benefits increases. Approved Union Contracts are in effect until December 31, 2024, as well as the approved Non-Union Salary By-law. The Fire Collective Agreement was finalized in 2020 for fiscal years 2021 to 2025. Student wages have been adjusted to the new Provincial Minimum Wage rate."
Following council’s request to review the Long-Term Capital Funding Policy, this year's budget has been prepared with a reduction in the capital funding allowance from the typical 1 per cent to 0.5 per cent, a difference of $505,498. This is the annual funding contribution from the general operating budget that is used to finance projects within the general capital budget.
In January, following a separate series of meetings, council approved the 2023 Water and Wastewater Operating Budget.
See: Water bills rising but use of reserves will lessen impact
The budget meetings are all scheduled to begin at 5:30 p.m. and will be held in the Mayor's Boardroom on the fifth floor of City Hall.
