City finds $14.6M for three projects

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This article was published 28/04/2011 (5657 days ago), so information in it may no longer be current.

City council found a way Wednesday to spend an additional $14.6 million on a trio of existing projects and programs without adding a dollar to its 2011 spending plans.

In a series of votes, council increased the size of a tax-incentive program for downtown housing by $10 million, forked over another $3.6 million for the Canadian Museum for Human Rights and added another $1 million to a basement flood-proofing program.

But the extra spending won’t affect the city’s capital or operating budgets this year, as the housing money will be financed by future property taxes, the museum funds will eventually flow from Ottawa and the flood-proofing cash is being diverted from another part of the water-and-waste budget.

As a result, Winnipeg’s 16-member council approved all three moves unanimously, although the museum cash was the subject of debate.

The City of Winnipeg has already pledged $20 million for the Canadian Museum for Human Rights: $11.1 million of waived property taxes, $5.1 million of capital funding, $2.5 million in waived lease revenue and $1.1 million of refunded development and permit fees.

On Wednesday, council approved $3.63 million of additional capital funding, with all of the money coming from Ottawa in the form of “payments in lieu of property taxes” — money federal institutions pay to municipalities instead of property taxes.

The city and Ottawa have yet to determine what those payments will be in any given year, Mayor Sam Katz said Wednesday. But it’s likely to be about $1 million per year, he added.

To make matters more confusing, the museum won’t receive any of the additional $3.63 million until the city pays back the province $11.1 million — again, using federal money. That’s because the city made its $11.1-million commitment to the museum up front, with the province forking over the cash on the city’s behalf.

Once this $11.1-million loan is paid back to the province and the museum gets its $3.63 million — probably no earlier than 15 years from now — the city will start keeping the money it receives from Ottawa, Katz said.

The financial wrangling is worth it due to the museum’s economic and educational benefits, the mayor said.

Daniel McIntyre Coun. Harvey Smith, however, expressed concern about the national museum’s repeated trips to the financial well.

As well, activist Martin Boroditsky appeared before council to argue grassroots non-profit organizations are struggling to balance their budgets and are more deserving of $3.63 million of public funds.

Katz retorted the issue is a not a matter of funding one organization over another, as the additional cash for the museum is a future consideration.

“It comes from revenue down the road. We’re not writing a cheque tomorrow,” Katz said.

St. Norbert Coun. Justin Swandel used stronger language.

“We should just shut up and get this done,” he said.

bartley.kives@freepress.mb.ca

Show me the money

 

Decisions made by council on Wednesday:

 

Downtown housing: Council voted unanimously to offer another $10 million worth of property-tax credits to developers who build new downtown apartments or condos, or convert existing buildings. The money will be covered by future property taxes flowing from reassessments of the same properties. There is $40 million of city and provincial tax incentives in the program.

Canadian Museum for Human Rights: Council voted to spend another $3.63 million on the new national museum on Waterfront Drive. The cash will come from Ottawa in the form of redirected payments in lieu of property taxes on the building — but not for another decade.

Backwater valve/sump-pump subsidy: Council voted to spend an additional $1 million on flood-proofing subsidies for homeowners. The money will be siphoned out of a fund dedicated to sewer renewals.