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Winnipeg Free Press - PRINT EDITION

City holds the line on taxes

$817.6-million operating budget smoke and mirrors, opposition councillors charge

By: Bartley Kives

Posted: 03/24/2010 1:00 AM | Comments: 0 (including replies)

Uncertainty over Manitoba Hydro money and concerns about transfers from reserves didn't stop city council from approving Winnipeg's 2010 operating budget -- the spending blueprint for policing, insect control, snow-clearing and other city programs.

Council voted 11-5 on Tuesday in favour of an $817.6-million operating budget that includes Winnipeg's 13th consecutive property-tax freeze, and a business-tax freeze that exempts more small operations from a tax Mayor Sam Katz pledged to eliminate when he was first elected in 2004.

This year's budget calls for $30.3 million in increased spending over 2009, mostly to cover the rising cost of salaries and benefits for police, firefighters and other workers.

But opposition councillors hammered the spending plan on the floor of council, describing it as an attempt by Katz and finance chairman Scott Fielding (St. James) to put off making tough decisions until after this October's general election.

St. Boniface Coun. Dan Vandal and Fort Rouge Coun. Jenny Gerbasi questioned the wisdom of transferring money from reserve accounts, claiming the move was done solely to stave off a property-tax increase this year.

And Transcona Coun. Russ Wyatt said it is foolish to count on receiving $10.6 million from Manitoba Hydro in a taxation dispute that's led the city to sue the Crown corporation.

"If this budget was a piece of cheese, it would be Swiss," quipped Wyatt, who went on a metaphorical tirade about the unseaworthiness of a financial ship led by "Capt. Katz and 1st Officer Fielding."

In response, Katz encouraged the Transcona councillor to take his act to Rumor's Comedy Club. But the mayor also defended the budget, noting almost all spending plans rely on transfers from some reserves.

And he said the city stands on a strong legal footing in its dispute with Manitoba Hydro.

"This is a budget. This is all projection," Katz said of the Hydro money. "It's no different than if we went way over on our snow-clearing budget: We'd have to find the money, which is exactly what we would do in any case."

After a 2.5-hour debate, Couns. Vandal, Gerbasi, Wyatt, Harvey Smith (Daniel McIntyre) and Lillian Thomas (Elmwood) voted against the budget.

River Heights Coun. John Orlikow voted along with council's majority, noting he doesn't always side with the opposition.

Wednesday's debate also marked the final budget debate for Old Kildonan Coun. Mike O'Shaughnessy, who plans to retire from city council this October, after serving 30 years.

O'Shaughnessy remarked that Winnipeg has gone from being one of the most overtaxed cities in Canada to boasting one of the nation's lowest property-tax burdens in the space of 15 years.

Council reconvenes today for a regular meeting with a relatively light agenda. The most contentious item is an audit that criticizes the Winnipeg Fleet Management Agency for questionable spending on software and staff trips to locations such as Las Vegas, Orlando and San Antonio.

bartley.kives@freepress.mb.ca

A frank exchange of views

Quotes from Tuesday's special council meeting to the 2010 operating budget:

'I give this budget a double-D minus'

- Elmwood Coun. Lillian Thomas during Wednesday's budget debate

'This is the HMCS Katz, with Capt. Katz and 1st Officer Fielding at the deck. You wouldn't take this thing on a creek, never mind trying to sail it on the seven seas, Mr. Speaker. This ain't an iron-clad frigate like the HMCS Winnipeg. This is more like a bathtub, with a broomstick for a sail'

- Transcona Coun. Russ Wyatt, claiming there are too many holes in Winnipeg's $817.6-million operating budget

'I also want to thank (Coun. Wyatt) for inventing fire, penicillin and everything that's made this country great already'

- Mayor Sam Katz, after Wyatt told council he deserved some of the credit for the city's new police cadet program

Republished from the Winnipeg Free Press print edition March 24, 2010 B1

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