The City of Thunder Bay has unveiled a proposed $526.6-million tax-supported budget for 2026, anchored by a $23-million capital plan approved by council last month and a municipal tax levy increase of four per cent.
The capital budget forms part of the city’s broader 2026 financial framework, which outlines funding for infrastructure, facilities and long-term municipal assets alongside day-to-day operating costs. The total proposed municipal tax levy would rise to $250.4 million, up $9.6 million from 2025.
City council previously directed administration to prepare a budget that limited property tax increases to no more than 2.6 per cent for programs and services under the city’s direct control. While that target was met, higher funding requests from some agencies, boards and commissions pushed the overall levy increase to four per cent.
“City council set a clear budget direction, and administration delivered,” said Keri Greaves, commissioner of corporate services and city treasurer, during a presentation at city hall. She said the budget manages rising costs while maintaining service levels and supporting long-term financial sustainability.
The approved $23-million capital budget was incorporated into the 2026 proposal and reflects continued investment in municipal infrastructure and assets. Capital spending is funded through a mix of reserves, debt, grants and other financing tools, and is separate from annual operating expenditures.
For homeowners, the city estimates the proposed budget would result in a property tax increase of about $72 for every $100,000 of assessed value for a single-family detached home.
The proposed operating budget includes funding tied to several capital-related initiatives, including preparations for the opening of the Tbaytel Multiplex, continued rollout of the Autocart waste collection system and implementation of the city’s Smart Growth Action Plan.
City manager John Collin said the budget balances fiscal restraint with 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 said.
Public consultations on the proposed budget are now underway. Residents can review budget documents and complete an online survey through the city’s website until Jan. 29. City staff will also host pop-up engagement sessions at the Thunder Bay Country Market on Jan. 17 and at Winter Fundays at Marina Park on Jan. 25.
Council is expected to review feedback before final consideration of the 2026 budget later this month.