City of Winnipeg budget just the tip of the tax, fee iceberg By: Joyanne Pursaga Posted: 6:23 PM CST Tuesday, Dec. 10, 2024

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This article was published 10/12/2024 (271 days ago), so information in it may no longer be current.

The City of Winnipeg’s budget may only reveal the first round of tax and fee hikes to be paid by Winnipeggers in 2025.

The city is still waiting on reports that detail upcoming sewer and water rates, garbage fees and the long-awaited 911 upgrade charge.

On Tuesday, Mayor Scott Gillingham said the wait means those potential costs won’t be factored into Wednesday’s budget.

He noted a sewer and water rate report, which city officials have warned could include a significant rate hike to cover major sewage upgrades, won’t be revealed until early 2025.

“It’s too soon to tell when an increase would come. We first have to get that report. But it’s going to show the need for funding from senior levels of government,” said Gillingham.

The mayor stressed the city is actively seeking funding from the provincial and federal governments to help cover its sewage upgrade costs, which include the massive upgrade to the north end sewage treatment plant on Main Street. That upgrade alone is expected to cost at least $2.38 billion, which a city report warned could climb to about $3 billion.

“If we don’t get more funding from the federal and provincial governments, water rates will have to climb significantly to accommodate, to pay for (it),” said Gillingham.

A report that will propose a new rate structure for garbage collection fees — that would cover the entire tab to collect solid waste while no longer using millions of dollars of property tax revenue to do so — is also not yet complete, the mayor said.

In addition, the timing of the city’s planned 911 upgrade fee also remains unknown. Originally expected to take effect on July 1, 2024, it would add $1 per month to all phone bills — cellphone and land lines — registered to Winnipeg addresses to help pay for “next generation” 911 service. But that fee cannot be imposed until the city bylaw is changed and senior government approves it.

“There are fee reports we’re going to have to deal with in the new year that are separate from the budget,” said Gillingham.

“We have not got the new funding deal from the province and we need more revenue.”–Mayor Scott Gillingham

The potential fees could add to any property tax, frontage fee or other cost introduced by the budget. CBC News has reported the city is looking at a 5.95 per cent property tax increase for 2025, which the mayor declined to confirm on Tuesday.

Gillingham did describe a higher property tax hike than the 3.5 per cent annual increase he campaigned on as an “option.”

“We have the option here of raising property taxes and raising them above 3.5 per cent,” he said.

The mayor noted he also campaigned on seeking a new growth-based funding model from the provincial government.

“We have not got the new funding deal from the province and we need more revenue,” said Gillingham.

He stressed Winnipeg would continue to have “the lowest municipal property taxes of any major city in Canada” if Wednesday’s budget is approved as is.

Council’s finance chairman said the city’s financial struggles are partly due to past budget decisions that shielded taxpayers from covering the full cost of inflation and economic fallout from COVID-19.

“They underpaid because we didn’t… pass on some of the cost escalations that we were seeing at the time,” said Coun. Jeff Browaty (North Kildonan).

Browaty said city departments will be expected to control costs and “find ways to stretch” their resources.

A taxpayers advocate is calling on the city to rein in new fees over concerns the tab could exceed what some residents can afford.

“It looks like it’s set up to be death by a thousand cuts for taxpayers. We have the property tax hike that looks to be a lot higher than the mayor promised it would be when he was running for election. And then… new fees (are) coming at a hard time for taxpayers when they are struggling to afford everything,” said Gage Haubrich, prairie director of the Canadian Taxpayers Federation.

He argues council members should cut their own salaries and seek out other savings to balance the budget instead.

“The city needs to look to find some kind of savings… so it doesn’t hurt taxpayers so much,” said Haubrich.

Meanwhile, an anti-poverty advocate said a higher property tax hike would be appropriate, as long as it’s paired with a property tax rebate for lower income homeowners.

“It’s about equity, it’s about fairness and that is what would make things more affordable,” said Kate Kehler, executive director of the Social Planning Council of Winnipeg.

“Adding $1 to everybody’s phone bill, for every number in a family, that is… just an additional charge when we already pay some of the highest rates in Canada for our communication.”–Kate Kehler

Kehler said she is concerned additional flat-rate fees, such as the delayed 911 fee, would hurt low-income residents most.

“Adding $1 to everybody’s phone bill, for every number in a family, that is… just an additional charge when we already pay some of the highest rates in Canada for our communication,” she said.

Kehler said hiking a variety of fees in lieu of larger property tax hikes appears to have become a trend, which the council hopes to study further.

“It’s something that we’ve noted (as a) concern and it just does seem to be getting worse,” she said Kehler.

joyanne.pursaga@freepress.mb.ca

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