Civic report recommends road-renewal tax hikes for years to come

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This article was published 21/06/2023 (832 days ago), so information in it may no longer be current.

Winnipeggers could be paying property tax hikes to fund road renewal well into the next decade.

A funding strategy for road and bridge infrastructure suggests council consider extending the practice long term, beginning with the 2024-2027 multi-year budget process.

A public works report proposes to continue levying at least part of those tax revenues through 2037.

“I’m supportive of it… it clearly identifies where we’re going as a council to maintain our existing roadways. That, in turn, is good for city staff, it’s good for contractors,” said Coun. Janice Lukes, chairwoman of the public works committee.

The report also calls on city council to make more projects eligible for the dedicated tax dollars, by adding in tree-replacement and preservation projects in 2024 and expanding to include road-safety and pedestrian/cycling programs in 2026.

The City of Winnipeg began raising property taxes with the money dedicated to road renewal in 2013. For 2023, property taxes rose 3.5 per cent, with revenue from two percentage points of the increase devoted to roads and 0.33 percentage points earmarked for the Southwest Rapid Transitway.

The new proposal would continue to ensure road renewal is a priority, said Lukes.

The proposed plan aims to improve the “level of service for roadway condition.” That would require devoting revenue from two percentage points of annual tax hikes to roads again from 2024 through 2028, then gradually decreasing the amount. Only 0.5 percentage points of property tax hikes would be earmarked for roads between 2034 and 2037.

“Assuming service level targets are met by 2037, no additional dedicated property tax increases for street renewal reserve purposes are projected for 2038 and the foreseeable future thereafter,” writes Brad Neirinck, the public works department’s manager of engineering, in the report.

The roads target would be achieved once 85 per cent of Winnipeg’s regional streets are in good or very good condition, as well as 75 per cent of residential roads, 75 per cent of industrial streets and 55 per cent of alleys.

Council could consider the report as soon as next month.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga