City seeks study on infrastructure costs from growth

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This article was published 11/05/2016 (3468 days ago), so information in it may no longer be current.

City hall is hiring a consultant to collect evidence to support Mayor Brian Bowman’s position that new development should pay additional fees for the strain put on existing infrastructure.

Bowman told reporters Wednesday morning that the growing infrastructure deficit is evidence that new development isn’t paying its share of the costs associated with the growth that comes with new development.

“The numbers that I’ve seen don’t support the proposition that growth is paying for growth,” Bowman said. “You look at our infrastructure, you look at the structural operating deficit – the numbers don’t add up.”

The city has issued a request for proposals for a consultant to prepare a report examining how growth impacts the city’s existing infrastructure. Council set aside $250,000 in this year’s budget for the work. The final report is due August 31.

Bowman said a consultant’s work is necessary to gather all the data for a proper discussion on the issue adding however, he’s satisfied he already knows the answer to the question.

“As we grow, we have to ensure the increase in corresponding wear and tear on the connectivity between communities and the infrastructure that connects the city, the funds are there for that growth,” Bowman said.

Bowman said he wants to have the possibility of a new fee considered for the 2017 budget but said the final decision will be up to council.

Bowman’s proposal was immediately rejected by the development and home building industry.

“Growth not only pays its fair share, growth pays more than its fair share,” said Mike Moore, president of the Manitoba Home Builders Association, adding the industry is prepared to show Bowman’s assumption is wrong.

The new provincial government didn’t seem receptive to the plan either. Following a swearing-in ceremony at the Legislature Wednesday afternoon, Premier Brian Pallister said he’s not prepared to allow city hall to impose new taxes, whatever they are called.

“I would have no plans to approach changes in legislation that would, as a consequence, increase the tax load of an already over-taxed population,” Pallister, adding however he’s not certain if the city could create the new fee without provincial approval.

Bowman’s call for “regulatory growth fees” is similar to a pitch made by former mayor Sam Katz and the administration in the fall of 2013 – that the city needed to impose an additional fee on suburban development to pay for the strain that growth was placing on the city’s infrastructure.

The city already imposes development charges on the development industry for costs related to the specific projects – sewers, sidewalks, roads, parks – but those charges cannot be applied to services outside the project area.

In 2013, Katz and the administration believed it could raise an additional $30 million per year through new growth charges on suburban development – a fee of $10,000-$12,000 per new lot.

The Selinger government refused to consider the proposal in 2013 and it’s questionable whether the new Pallister government will have a different view. Pallister said during the provincial election campaign that he would not support giving any new taxing powers to municipalities. Newly elected MLA Scott Fielding is a key player on Pallister’s cabinet but when he was a city councillor and member of Katz’s inner circle he was a staunch opponent of the development fee in 2013, calling it a tax on new homes the city couldn’t afford.

But Bowman appears to be taking Katz’s idea one step further – applying growth charges to infill developments as well as suburbs.

Bowman said that the city’s planning guide, OurWinnipeg, encourages greater density development but he said no one at city hall knows what impact infill projects have on existing infrastructure.

“Regulatory growth fees could be used for growth regardless of where it occurs…you want to make sure growth is paying for growth.”

Echoing comments he made in the spring at his state of the city address to the Winnipeg Chamber of Commerce, Bowman said without new fees, all Winnipeg property owners will have to see higher property taxes.

“Given the financial position of the city, we’re either looking at higher property taxes for everyone or higher property values and costs for some who choose to build.”

Moore said he expects the development and home building industries will be consulted by the consultant the city hires.

Moore said the city needs to determine how and who pays for existing infrastructure. New suburban homeowners are paying property taxes for relatively limited services, he said, adding that money is going to subsidize infrastructure across the city.

Bowman said his “regulatory growth fees” are different than what Katz and the administration was proposing in 2013 but he was unable to explain the difference.

In 2013, city officials said it couldn’t impose new development charges to pay for growth outside the project areas without legislative amendments to the City of Winnipeg Charter Act but Bowman said he doesn’t think the city needs the province’s approval. He added he hoped the new Pallister government would be amenable to allowing the new fees if the evidence from the consultant’s report supports his position.

“One of the things I’d expect from our new provincial partners is that they want to ensure a stronger Winnipeg, a Winnipeg that has its financial house in order.”

A civic spokesman said the consultant report will “provide an analysis of best practices across other municipalities, an exploration of growth-related costs and revenues, and depending on the outcome of the study….determine whether the potential exists to create a new financial mechanism and to make recommendations toward implementation.”

Bowman said he planned to share the findings from the consultant’s report with all of council and the public.

“This isn’t just intended for councillors and certainly not intended for councillors behind closed doors. This is so Winnipeg can have a meaningful discussion and debate on this potential and do it with accurate information.”

aldo.santin@freepress.mb.ca

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