Winnipeg council passes budget with biggest tax hike in decades

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This article was published 29/01/2025 (222 days ago), so information in it may no longer be current.

City council has approved the highest property tax hike since the 1990s.

Council cast a divided vote to approve the 2025 budget Wednesday, including a 5.95 per cent property tax hike, amid failed attempts to add a business tax hike and restore a library social service hub.

After a lengthy debate, council cast a final 11-to-five vote to approve the operating budget and a 10-to-six vote in favour of the capital budget.

Mayor Scott Gillingham stressed the new revenue will help the city provide investments that residents deemed key priorities.

“This budget is about investing in the priorities citizens of Winnipeg have told us are important to them. A safer community, through increased investment in public safety, more housing,” said Gillingham.

The tax hike is earmarked for general revenues as well as set priorities, including road renewal, Winnipeg Transit, police, snow removal, and community safety officers that patrol buses and bus stops.

Some councillors argued the current taxation plan doesn’t raise enough money to fix crumbling infrastructure and maintain services, following a legacy of tax freezes and relatively low annual hikes thereafter.

“The municipal fabric of this city is now in tatters after 26 years of self-imposed austerity,” said Coun. Russ Wyatt (Transcona).

Wyatt raised an unsuccessful motion to increase the business tax from 4.84 per cent to 5.84 per cent this year, which also called on the mayor to replace a proposed 3.5 per cent property tax hike for 2026 with a pledge to levy a 5.75 per cent increase. His motion was seconded by Coun. John Orlikow (River Heights-Fort Garry).

Gillingham deemed the 2026 property tax a decision for next year’s budget and quickly dismissed a business tax hike.

“For two veteran councillors to bring forward a motion today to increase business taxes by 20 per cent at a time where we are days away from potential tariffs and counter-tariffs is wildly irresponsible,” he said.

U.S. President Donald Trump has threatened to add 25 per cent tariffs on goods from Canada, as soon as Feb. 1.

Prior to the budget votes, some councillors complained they couldn’t get enough information to make an informed vote.

“No one reaches out to you and no one gets back to you… It’s not really about me, it’s about having some respect for the people of St. Vital, frankly,” said St. Vital Coun. Brian Mayes.

Coun. Sherri Rollins (Fort Rouge- East Fort Garry) tried to have the budget vote delayed, arguing an update to water and sewer rates should be released and factored into the financial plan before the vote. Her motion also failed.

Coun. Cindy Gilroy (Daniel McIntyre) unsuccessfully tried to restore funding for the original community connections space in the Millennium Library, where a combination of community safety hosts and library staff connected vulnerable people to social services.

Gilroy’s motion called to divert $614,000 from hotel tax revenue to help reopen the space next year, which previous estimates suggested would cost $628,000.

“I don’t understand why we are changing the things that are working. Community connections space has been this wonderful thing… We know it works,” said Gilroy.

Multiple delegates lobbied council to restore community connections in its past format.

“It is irresponsible for us to be passing a budget that reduces services, especially in spaces like community connections… If you care about the library, we have to reinstate this,” said Michael Redhead Champagne.

The mayor instead supported a plan in which the Downtown Community Safety Partnership would use the space for a pilot project, where it will help vulnerable people.

“Though it’s not exactly the same delivery model, I believe that many of the same needs will be met by the DCSP,” said Gillingham.

The mayor stressed the budget reflects strategic priorities set by all council members and information was readily shared with all elected officials.

“We’ve worked very hard at providing councillors the information that they need,” said Gillingham.

The mayor joined councillors Matt Allard (St. Boniface), Jeff Browaty (North Kildonan), Markus Chambers (St. Norbert-Seine River), Shawn Dobson (St. James), Evan Duncan (Charleswood-Tuxedo-Westwood), Ross Eadie (Mynarski), Janice Lukes (Waverley West), Vivian Santos (Point Douglas), Jason Schreyer (Elmwood-East Kildonan) and Devi Sharma (Old Kildonan) to support the operating budget. It was opposed by Gilroy, Mayes, Rollins Wyatt and Orlikow.

The mayor joined Allard, Browaty, Chambers, Dobson, Duncan, Eadie, Lukes, Santos and Sharma to support the capital budget, while Gilroy, Mayes, Rollins, Schreyer, Wyatt and Orlikow opposed it.

A vote to finalize the budget in a bylaw is expected Thursday.

joyanne.pursaga@freepress.mb.ca

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