Possible growth fees won’t be used to balance the books: Morantz

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This article was published 15/09/2016 (3345 days ago), so information in it may no longer be current.

City hall isn’t counting on an influx of cash from the proposed growth fees to balance next year’s budget.

Coun. Marty Morantz, chairman of council’s finance committee, said the 2017 operating budget is being prepared without the provision any additional revenue that would be generated from a new fee on development projects.

Growth fees “are not an exercise in balancing the budget,” Morantz (Charleswood-Tuxedo-Whyte Ridge) told reporters following the Thursday morning finance meeting. “These monies from the growth fees, assuming this policy is passed, will be dedicated to growth-related funds and held in a separate fund for that purpose.”

Brian Bowman’s push to impose a fee on new development has stirred opposition from the residential and non-residential development industries, who suspect the mayor wants to use the additional revenue to balance the city’s budget.

Morantz made it clear Thursday that’s not the plan and said the new fee, if approved by council, would not impact the city’s operating budget. However, when questioned, Morantz was unable to explain what impact a new fee would have on the amount of money set aside every year in the budget for capital projects.

While the city generally borrows funds to pay for infrastructure work, many departments allocate part of their operating budgets towards capital projects. This year, public works allocated $17.6 million; transit, $17 million; and property, planning and development, $2.2 million.

The development community believes growth fees will free up those funds for other operating costs.

Morantz said growth fees would not have an impact on what amount departments set aside for capital spending in their operating budgets, adding those decisions will be made by the departments based on their available funding.

“These two things are not related,” Morantz said. “We build the budget from the ground up every year and establish cash-to-capital every year on the resources we have.”

Morantz said he expects the 2017 operating budget will be presented to council before the end of December – the two previous budgets went to council in March.

“Right now, the goal is to get (the budget) done by December,” Morantz said. “We are working diligently on it right now. I think it would be better for the city if we could pass it by December so every department knows where they stand.”

aldo.santin@freepress.mb.ca