In a special committee meeting, Thursday, municipal officials laid out its final working draft for the City of North Bay's 2021 operating budget.
The 2021 levy will increase 3.38 per cent if passed, approximately $3.1 million over the 2020 levy on a proposed 2021 budget of nearly $97 million.
Deputy Mayor Tanya Vrebosch noted, "We've had a few setbacks over the last little bit, where we think we're moving forward and then something happens."
The budget chief was referring to deliberations that neared completion before the holiday break but were slightly derailed by the revelation of an $800,000 shortfall due to a Workplace Safety and Insurance Board (WSIB) glitch in its rates forwarded to the City.
See related story: 'Glitch' leads to $800K budget shortfall
See also: WSIB to blame for 'glitch' — City still responsible for shortfall
The 2021 tax levy was in the final stages to be approved with a $3.1 million increase of 3.36 per cent over 2020 on a $97 million budget. The WSIB situation increased the levy increase to 4.22 per cent over 2020's budget before the finance and budget teams brought that number back down to the 3.38 per cent increase to be voted on by Council in an upcoming regular meeting.
"We've gotten to a point that was close to what we had before. What's being presented is 2.99 per cent," added Vrebosch. The City uses growth-adjusted figures, in this case adjusting the levy by $336,000 or 0.39 per cent.
Margaret Karpenko, the City's Chief Financial Officer explained a reduction in student positions; staff training and travel budgets; and, savings found in the chemicals used in the City's leachate operation all helped reduce the proposed levy increase to the current level.
Vrebosch asked Karpenko about the budget forecast in 2022.
After figuring in the possible use of reserves — and noting the proposed hardship program and financial contribution to Jack Garland Airport do not impact the levy moving forward — Karpenko forecasts a 1.23 per cent levy increase starting point in 2022, including a one per cent capital levy increase per City of North Bay policy. Not included in this projection is the impact of increasing WSIB premiums, rates the CFO expects to receive soon.
"In 2022, we will have some level of upward pressure from WSIB but I don't know the magnitude of that," advised Karpenko.
