Budget Talks: City Finances and Community Engagement

Frank Pullia is the new Chair of Administration and Finance on Thunder Bay City Council
Frank Pullia

Frank Pullia is the new Chair of Administration and Finance on Thunder Bay City Council
Frank Pullia is the Chair of Administration and Finance on Thunder Bay City Council

THUNDER BAY – CIVIC – One of the key areas of responsibility for a Councillor is to represent his/her constituency and this means engaging in an ongoing two-way communication. We hear from many, but how can we also inform the citizens in a proactive way to let them know what is happening on the key areas of concerns to them? Writing articles on a range of subjects is one way and I appreciate the opportunity to engage in a dialogue with our citizens.


As the budget sets the stage for how the tax dollars are being spent through the provision of services during the year, it is important that citizens be involved in the process. They will now be able to participate in a pre-budget consultation at a community hall meeting where they can ask questions of administration and provide ideas and suggestions prior to Council’s detailed review of the budget. The meeting will be held at the 55 Plus Centre on Thursday, Feb. 4, from 6:30-9 pm.

For the 2017 budget, the community consultation will start much earlier in June 2016.

City Finances

With municipal inflation running at around three percent, it is now becoming more difficult to balance citizens’ expectations for reasonable tax increases and the delivery of community services. While we have experienced some good revenue growth in the last few years and we have much to be thankful for in our city, we are now facing new challenges that are socio-economic in nature (homelessness, poverty, crime and safety, addiction, mental illness, etc.) and climate changes that are placing tremendous strain on our roads, infrastructure and local resources.

Within this context it is useful to consider the outside perspective of a Credit Rating Agency like Standard & Poor’s that recently gave our city an AA-(stable) Credit Rating.  

The AA- rating basically supports our current direction of fiscal prudence and improving budgetary performance. Other positive aspects of our current financial picture are:

* Management of debt and liquidity is prudent

* Financial Statements are comprehensive and transparent

* We have a 20-year capital forecast

* Thunder Bay Gross Domestic Product per capita is close to provincial averages of $50,000

They have also indicated some limitation in reducing operational costs (contractual agreements and wage pressures, cost of materials, energy and others outside of our control and growing faster than the rate of general inflation, etc.) and the over reliance on government jobs that while positive in providing a stable economic environment, has some risks during times of financial constraints from the provincial and federal government.

The S&P report also indicated that we can increase our rating even further if we can grow our revenue, control costs and improve on some key financial indicators over the next few years.

Strategic Plan

Given the new challenges and limitations identified above, I believe that we need to be much more strategic in our approach to growing our city and tax base. The city’s new strategic plan was developed through community feedback provided to councillors during the election, town hall meetings and input from key community partners. It now also includes key performance indicators that will help guide the City towards specific goals.

One such goal was a three-year budget planning process that has already been launched and will be discussed at the Feb. 4 pre-budget consultation. The time has now come for practical, achievable and measurable growth goals and in future articles I will provide additional insight in how the city’s approach to budgeting and taxation needs to evolve in order to better deal with multiple challenges of declining transfer payments, economic uncertainty, and changing citizens’ expectations about the provision of services at the local level.

Frank Pullia is Councillor at Large for the City of Thunder Bay and Chair of Committee of the Whole – Administrative Services (including Budget deliberations).  He can be reached at fpullia@thunderbay.ca or 767-6579. Comments and feedback are welcome.


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Frank Pullia has a Master of Business Administration (MBA) from Lakehead University, is a Certified Management Accountant (CMA) and a Consulting CMA with over 26 years experience in business, marketing, management, labour, and politics. He has held positions of increasing responsibility in the public (Ontario Hydro), private sector international company (Kimberly Clark), Canada-USA organizations (Northwest-Midwest Alliance) and has been the Principal of Pullia Accounting & Consulting since 1995. He is an experienced and innovative business professional helping companies, municipalities, Aboriginal communities and not-for-profit organizations in Northwestern Ontario, Canada and internationally meet their strategic, financial, management and economic development objectives by providing leading-age business consulting services. Frank has an excellent background in public/private sector partnerships and forging alliances with various levels of government, having been a Councilor for the City of Thunder Bay for seven years. This experience and the many leadership roles taken through his involvement in numerous volunteer Boards and organizations, also allow him to provide a high-level of expertise on governance and management. Throughout his career he has focused on effective risk and change management and ensuring that organizations were and continue to be well positioned to deal with both internal and external challenges. Frank writes extensively covering trends and issues of social, economic, financial and political nature with a global perspective but of particular interest for the city and region. He is currently writing a book on the traditional Japanese martial arts and modern management techniques. He holds a 1st degree black belt in Shotokan Karate and has used the holistic approach of body-mind-spirit as a way of life to accomplish outstanding results in his personal and professional career.