For Katz, ‘no’ means ‘go’

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This article was published 28/02/2012 (4968 days ago), so information in it may no longer be current.

THE city-provincial fight over rapid-transit funding has taken a surreal turn, with Mayor Sam Katz thanking Greg Selinger for blessing a fare hike the premier says he still opposes.

Late last year, city council approved a 20-cent bus-fare increase to help pay for the second phase of the Southwest Rapid Transit Corridor, a busway that would cost $275 million to extend from Jubilee Avenue to the University of Manitoba or another $700 million to upgrade to a light-rail line.

The province, which has an indirect say in the way transit revenue is spent, has balked at the proposed fare hike, which comes on top of a routine five-cent increase imposed last month. On Wednesday, Selinger said the province wants to find another way to pay for future rapid-transit corridors and will not accede to any transit-funding deal that includes the 20-cent hike.

The premier’s office was puzzled by a letter from the mayor in which Katz thanks Selinger for agreeing to the second hike.

“You have advised that the Province of Manitoba is prepared to allow the city to retain the full revenues raised by this 20-cent increase, provided that these revenues are invested in rapid transit. I would like to thank you for, and confirm this commitment,” Katz wrote in a letter dated last Friday.

The mayor went on to assure the premier the city intends to spend the fare-hike money on rapid transit — but left the door open to “an alternative funding solution” that would avoid the increase.

“If you have any other ideas, I would be more than willing to meet with you. As you can appreciate, our deadline is at the end of March so time is of the essence,” Katz said.

In a response on Monday, Selinger again insisted he does not support the fare hike.

“As I have indicated consistently in our discussions, I am concerned that a 20-cent increase will pose extraordinary hardship on current transit users and discourage potential new users,” Selinger wrote. “To place the full cost of transit expansion on transit riders is not an acceptable funding solution to develop this critical component of our transportation infrastructure.”

This exchange between the leaders preceded today’s release of the city’s operating budget, which will include financial assumptions for Winnipeg Transit. Selinger signed off his letter by stating he hopes it will help council “more accurately prepare” for the 2012 budget.

Katz, however, said Selinger “must be confused.”

During a break in the council meeting, where the hike was approved by an 8-6 margin, the mayor said the premier agreed to allow the city to raise transit fares and keep the revenue for rapid transit in November.

“Let me enlighten you. That letter does not refer to any meeting. During the break in the council meeting, I phoned the premier and asked him for verification they would not claw back the revenue,” Katz said in an interview.

The city is seeking some form of cash commitment from the province to build the second phase of the Southwest Rapid Transit Corridor. The first phase, slated to open April 8, was built at a cost of $138 million, with Ottawa contributing $28 million and the city and province splitting the remaining $110-million tab.

The city and province borrowed $90 million of this cash and intend to recoup the money from property taxes that flow from new developments along the bus corridor.

bartley.kives@freepress.mb.ca