Proposed city budget holds property taxes at 3.5%, but raises, adds fees for many services By: Joyanne Pursaga Posted: 2:06 PM CST Wednesday, Feb. 7, 2024 Last Modified: 7:08 PM CST Wednesday, Feb. 7, 2024 Updates

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Winnipeg’s preliminary four-year budget proposes to hike many fees, impose a new garbage-diversion charge for apartments and condominiums, and add a 911 upgrade fee, while also raising bus fares and some taxes, to help balance the books.

Mayor Scott Gillingham had warned cost pressures would force difficult spending decisions.

The city’s $1.363-billion tax-supported operating budget is poised to keep Gillingham’s campaign promises to cap annual property tax hikes at 3.5 per cent per year. Frontage fees are also frozen, following a 2023 hike.

The budget books stress that tax increase is relatively low, as “many cities” have recently raised property taxes by as much as five to 10 per cent.

“We are working to improve service quality, but we need more revenue to fund those improvements. We also have to balance those needs against what has been, in many ways, a choppy economy… We had to consider the needs and financial challenges that many Winnipeggers are facing in their own household budgets while also investing in the service needs and priorities of our city,” said Gillingham.

The owner of a home assessed at $338,900 (excluding provincial school taxes and frontage levy) would pay $69 more for property taxes, with the bill rising to $2,036 this year from $1,967 last year.

Prior to the budget, the mayor issued two separate news releases that warned inflation, rising labour costs, pandemic financial blows and soaring Winnipeg Transit subsidies would require “difficult” budget decisions.

“We had to consider the needs and financial challenges that many Winnipeggers are facing in their own household budgets while also investing in the service needs and priorities of our city.”–Mayor Scott Gillingham

The budget proposes to raise various city fees to help cover the cost of inflation. The average hike is expected to be five per cent in each of 2024 and 2025, followed by 2.5 per cent in each of 2026 and 2027.

A new multi-family waste-diversion fee would begin at $46 per unit in 2025, while the existing waste-diversion fee for single-family homes would rise to $80 per dwelling in 2024 (up from $69.46 in 2023.)

Transit fares are also slated to rise by 10 cents each year on Jan. 1, up from a traditional five cent annual hike per ride, though the low-income Transit pass will be frozen for 2024.

The regular per-ride fare is $3.25 for 2024, while the monthly (low-income) WINNpass is $53.90.

If the budget is approved as is, the city will add a $1 per month 911 charge to all phone bills — cellphone and landline — registered to Winnipeg addresses to fund “next generation” 911 service, which is expected to cost $10 million and provide users the ability to submit texts, videos and photos. The fee is expected to begin July 1, 2024, though it would require provincial approval. Police and fire paramedic 911 services would be amalgamated.

The budget proposes a one percentage point hike to the accommodation tax, to six per cent.

“To address inflationary cost pressures and fund new investments, we are seeking revenue changes or increases in several areas. The draft budget increases general fees to catch up to inflation over the next four years,” said Coun. Jeff Browaty, chairman of finance.

The plan calls for replacement or decommission of 20 wading pools and closure of the Happyland outdoor, Windsor Park outdoor and Eldon Ross indoor pools. The city would spend $20 million to create 10 new splash pads. A review is also planned to assess the usage, annual revenues and operating costs of Kinsmen Sherbrook Pool, which is due back in 2027.

“We’re really looking at modernizing our aquatic facilities… There’s no imminent plan to close the Sherbrook pool, that is not in the cards over (the next) four years,” said Browaty (North Kildonan.)

He noted the planned pool closures as an example of “tough” budget choices.

Gord Delbridge, president of the Canadian Union of Public Employees Local 500, said he is concerned some jobs will be lost due to the closures, though he could not provide a number.

While Browaty stressed ample efforts were taken to avoid a higher property tax increase, some advocates fear the fee hikes will be unaffordable for residents with the lowest incomes.

“We see things (like) the fees, that are in my mind taxes, across the board… Of course, 911 services are incredibly crucial but we’re asking people who are already struggling to pay a phone bill to put maybe $1 (or more) per month, when in Canada we pay such high rates already,” said Kate Kehler, executive director of the Social Planning Council of Winnipeg.

Kehler said a larger property tax hike applied on a sliding income-based scale could split costs more fairly.

Despite the city’s cash-strapped status, there are some new investments.

The snow-clearing budget, which was stuck in the $34-million to $36-million range for several years, will rise from $36 million in 2023 to $52 million in 2027, after the city came in over-budget for the service in 19 of the last 20 years.

A library would be added in northwest Winnipeg. Overall, nearly $5.9 million is slated to enhance library services in 2024, including an increase to some library hours and safety improvements.

“No library will see midweek closure days year-round. From Labour Day to May long weekend, overall branch hours will increase 10.2 per cent over current hours,” said Browaty.

Revenue from two percentage points of the property tax hike would be devoted to road repairs, which the city said will amount to $984 million over the next six years, while revenue from 1.5 percentage points will go to the operating budget until 2026. In 2027, all tax hike revenue will fund city operations.

The city plans to spend $138 million on road renewal this year, down from $156 million in 2023.

Chris Lorenc, president of the Manitoba Heavy Construction Association, said he was disappointed to see a drop in the funding and hopes the city can work out a new funding deal with senior governments to provide more stable infrastructure support.

“We understand the challenges the city faces but the reality is, (roads are) an asset that has a finite life cycle… It’s only going to get worse the more that we defer (investment),” said Lorenc.

Following a series of meetings and public delegations, city council is expected to cast a vote on the final budget on March 20.

joyanne.pursaga@freepress.mb.ca

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Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

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