City’s revenue takes hit thanks to snag on 911 upgrade fee By: Joyanne Pursaga Posted: 6:06 PM CDT Tuesday, Sep. 10, 2024

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This article was published 10/09/2024 (756 days ago), so information in it may no longer be current.

A new 911 upgrade fee the City of Winnipeg had hoped to tack on to all phone bills is no longer expected this year, which will cost the cash-strapped city millions of dollars in revenue.

The city’s budget proposed to begin collecting the $1 per month fee as of July 1, 2024, pending provincial approval. It was to be added to all cellphone and landline bills registered to Winnipeg addresses to help fund “next generation” 911 service.

Coun. Jeff Browaty, who is finance chairman, said the city expected the new charge to raise $3.75 million in revenue for 2024 and $7.5 million in each of the following three years.

“We’re a little disappointed for the sake of the revenue that (the fee) hasn’t happened yet, but it is moving forward in a positive way right now,” said Browaty (North Kildonan).

The councillor said he expects the charge to take effect sometime in 2025.

“We’re still working with it… It’s sort of more of a matter of when, not if… There was some frustration that our staff maybe weren’t moving as quickly as we’d hoped to have that implemented,” said Browaty.

The councillor said the city lacks experience in imposing this type of fee and didn’t immediately realize it needed a bylaw to do so, which it didn’t approve until July.

“Next generation” 911 service will allow users to submit texts, videos and photos, which Browaty said is due to begin in 2026.

“We’re a little disappointed for the sake of the revenue that (the fee) hasn’t happened yet, but it is moving forward in a positive way right now.”–Coun. Jeff Browaty

In an email, city spokesman Kalen Qually said provincial legislation must change before the fee can be added, which caused the delay.

“The city is still actively discussing options with the province and will continue working on implementation of the levy,” wrote Qually.

In a brief statement late Tuesday afternoon, a provincial spokesperson indicated the senior government is still considering the idea.

“No decision has been made regarding a 911 service fee for Manitobans,” the spokesperson wrote.

The setback comes as the city faces a substantial deficit.

A finance report notes the municipal government expects to end the year with a $19.2-million deficit for its tax-supported budget, based on data up to June 30. Winnipeg Transit is projecting a $400,000 surplus.

At first glance, the city’s financial outlook may appear much brighter than it did at the end of March, when finance officials predicted the government would end the year with a $39.3-million shortfall.

But a large part of the improvement stems from a decision to cancel a $15.4-million transfer from general revenues to the city’s fiscal stabilization reserve. Eliminating that transfer means the city won’t restore its rainy day fund, which removes a financial cushion that covers unexpected costs and deficits, Browaty said.

The reserve is now expected to have $16.3 million at year’s end, all of which the city will use to cover its deficit, if finances don’t improve first.

Officials will also take a few other measures to eliminate the remaining $2.9 million of the forecast deficit, including reductions to discretionary spending and a hiring pause for non-essential staff.

“Until the forecasted deficit can be addressed, the city will be in a more difficult position to approve any over-expenditure requests, potentially causing some disruption to services,” the finance report notes.

Browaty stressed the city will minimize the impact of budget restraints on city services and the shortfall could still decline as the year goes on.

“I’m hopeful, and I believe, that we won’t need to make any types of front-line cuts that would affect the services that Winnipeggers count on,” he said.

The city report blames the expected deficit on a few surging department costs, including: a $12.9-million Winnipeg Fire Paramedic Service shortfall linked to increased workers compensation and overtime; and a $12.1-million overrun for public works largely due to snow clearing, spring cleanup and road maintenance. Those amounts are offset by higher interest rates and savings, including those from job vacancies and hiring delays, the report notes.

The city credits Transit’s slight expected surplus primarily to lower-than-expected fuel costs.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga