THUNDER BAY — The city’s proposed 2026 budget totals about $638.7 million, an increase of $26.1 million from last year. While council directed staff to keep the tax-levy increase to 2.6 per cent, the draft budget calls for a 4.4 per cent increase for taxpayers.
City officials say the higher increase is largely due to outside agencies and boards that were unable to meet the 2.6 per cent target. City manager John Collin said city-run services stayed within the limit, but added costs from agencies pushed the overall tax levy higher.
The city will need to raise $251.5 million in municipal taxes in 2026, which is $10.7 million more than in 2025.
One major factor is the Thunder Bay Police Service, which is requesting a 9.1 per cent budget increase, or about $5.4 million. Other agencies seeking more funding include the Thunder Bay Public Library and the District Social Services Administration Board.
If approved, the tax-supported operating budget would rise to $412.2 million, while capital spending would drop slightly. The city also plans to add 50 full-time positions, mainly to support child care expansion and new facilities like the Tbaytel Multiplex.
Public input on the budget is open until Jan. 29, with council discussions scheduled later this month. Final approval is expected on Feb. 3.
