A third party contractor could help Thunder Bay Fire Rescue collect $100,000 annually to help bolster the department's Equipment Reserve Fund.

City council will look into signing a contract on Monday night with Fire Marque Inc., which according to the company's website, can "provide funding to the community's fire department."

A report prepared by Thunder Bay's administration said that after a fire, Fire Marque Inc. would attempt to collect "reasonable fees" from the property's insurance company, which could range from $1,000 to $5,000.

Of the money that would be collected, 30 percent would be retained by the company, while the remainder would go to the city.

The hitch is if an insurance company refuses to pay the claim to Fire Marque Inc., then the amount could be added onto a property tax bill, which would then be collected "indirectly" through insurance, according to the city report.

Kitchener, Sudbury, North Bay and Oshawa are a few of the cities in Ontario that use the process to help recoup firefighting costs. Other municipalies told Thunder Bay's administration that they are "ethically opposed to the process", or fear an escalation of insurance premiums.

Fire Marque Inc. said insurance companies already budget for a fee to be collected by the fire service, and the collection by the city will not affect premiums.

The amount collected by the company would not have any effect on a claim from an individual property owner.

The process is only for homeowners with insurance. Those without would not have any costs recouped.