The focus for Thunder Bay's 2013 budget will be on capital spending.

Friday afternoon the city’s budget was released.

CBC News has compiled some of the highlights:

• Taxes will go up by 2.6 per cent, which means the average homeowner will pay about $2,600 to the city next year.
• Water rates will go up 7 per cent, or $5 a month.
• Thunder Bay plans to spend $12 million on roads and bridges, $1 million on sidewalks
• A new pumper truck, aerial ladder truck and ambulance are also part of the budget.
• Expect to see a new parking lot and trail at Prince Arthur's Landing.
• The city will also hire more paramedics and have more staff at tourist information centres.
• User fees will also go up. Residents can expect to pay a little more to go swimming, take part in recreation programs, use daycare services or go golfing.

The city called the budget responsible, and said it will spend money only where it has to.

Council is slated to ratify the budget in March.