Angry budget debate erupts at city hall

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This article was published 13/12/2016 (3533 days ago), so information in it may no longer be current.

Tempers were frayed Tuesday during city council’s budget debate, but it wasn’t about the property tax increase they were about to vote on.

There was little doubt councillors would pass a 2.33 per cent property tax increase, but few could have predicted the angry accusations, verbal attacks and allegations of secrecy that punctuated the debate.

While the approved budget is almost identical to the draft document released Nov. 22, the day saw three members of Mayor Brian Bowman’s executive policy committee attack two business leaders after they criticized the amount to be spent on roads in 2017. At one point, Coun. Shawn Dobson lashed out at Bowman, saying he didn’t trust him, his executive policy committee or the city administration.

There were no last-minute changes as the operating and capital budgets were approved by a vote of 11-5.

Loren Remillard, president of the Winnipeg Chamber of Commerce, and Chris Lorenc, president of the Manitoba Heavy Construction Association, spoke to council about their objections to how Bowman and his inner circle had presented the roads portion of the budget. Then, they had to fend off harsh criticism from Couns. Marty Morantz (former finance chairman), Scott Gillingham (current finance chairman) and Brian Mayes (chairman of the environment committee).

Lorenc and Remillard said they would support the budget, but they are concerned it deviates from council’s 2015 long-range spending plan. They argue Bowman and EPC have refused to acknowledge there has been a change in the spending plan.

Remillard referenced the 2017 budget documents and said the city plans to raise $60 million more in property taxes over the next six years, money that is dedicated to road spending. But he said the city will only be spending $24.9 million more on roads over that time frame.

“Where are the funds going?” Remillard asked.

He pointed out the property tax increase for 2017 is supposed to be designated to fix the city’s crumbling roads — but the city will be spending the same amount in 2017 as it did in 2016.

Lorenc, whose group ran radio ads raising similar concerns, told council they have every right to change their plans — but they should explain why.

“It’s fair ball to say to council, ‘If you’re changing that policy, for whatever reason, disclose it to the public so that we know what your plans are.’”

The two found themselves under attack. Morantz repeated allegations that Lorenc had conspired with Coun. Russ Wyatt to criticize the budget — allegations Lorenc and Wyatt have repeatedly denied.

Morantz then turned his sights onto Remillard, and told him he had no business criticizing the roads budget if he didn’t understand how it had been funded.

Remillard told Morantz he did understand the funding, that the budget document was confusing even to councillors and he found Morantz’s comment “offensive.” That prompted applause from members of the public watching from the gallery.

“The fact that we’re here, and you’ve got 16 (politicians) around the table, and you do not have unanimous agreement on what the numbers mean, should be a wake-up call,” Remillard said.

“I’m accused of not knowing the numbers and not understanding. This is your job and if you all can’t agree on it, I find it offensive there would be an insinuation that somehow I should know more than the 16 of you.”

Dobson, one of seven councillors who isn’t a member of EPC, slammed the budget process, accusing Bowman of failing to follow through on his promise to include all councillors in that process, not just members of his inner circle.

“This secrecy crap has got to stop,” Dobson declared.

He said as a result of Bowman shuffling EPC members in early November, only four councillors helped draft the budget. 

“Until all of council is allowed to participate in the draft budget from the start, then the mayor and EPC are the problem.

“I’ve got news for you — I don’t trust the administration. I don’t trust EPC members, and I certainly don’t trust the mayor.”

He voted against the budget.

The 2.33 per cent property tax increase will mean an extra $38.51 in taxes for an average home assessed at $288,190. Road spending is pegged at $105 million, unchanged from 2016. 

The 2017 budget has an operating budget of $1.08 billion and a capital budget of $432.9 million. The year-over-year increase in department spending was described as the smallest percentage increase in 10 years. Business tax rates will be decreased to 5.25 per cent from 5.3 per cent and firms with an annual rental value of $32,220 or less will get a refund on business taxes.

After the vote, Bowman thanked Lorenc and Remillard for supporting the overall budget. He defended the comments of Morantz, Mayes and Gillingham, saying they were justified to rebut “misrepresentations” made by Lorenc, Wyatt and others.

“I that certainly noted the misrepresentation of the road budget by Chris Loren and Coun. Wyatt,” Bowman said. “Those that were watching saw many members of council took issue with that misrepresentation… There was a passionate response to a mischaracterization to our commitment to fixing the roads.”

Bowman said council’s spending on roads is “unprecedented and historic” and he was pleased a majority of council supported it, even if it wasn’t unanimous.

“It’s a fiscally prudent and responsible budget,” Bowman said.

Attempts to amend the budget were easily defeated. Couns. Russ Wyatt and Ross Eadie proposed to add another $10.6 for roads spending, which would have resulted in the property tax increasing to 4.33 per cent. Wyatt and Coun. Jeff Browaty proposed to put a freeze on the dollar amount transferred from the water and waste department surplus to balance the budget every year.

aldo.santin@freepress.mb.ca