City sticks with minor tax increase next year

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This article was published 09/09/2021 (1724 days ago), so information in it may no longer be current.

The City of Winnipeg is planning to cap the annual property tax hike at 2.33 per cent next year even though the government predicts it will take years to recover from the economic blow of COVID-19.

Mayor Brian Bowman said he will not waver from his 2018 campaign pledge to limit tax hikes to that level, since he believes many Winnipeggers can’t afford to pay more.

“Right now, there’s a lot of businesses and individuals who are struggling, quite frankly. …Any additional imposition of tax burden is not something that I would support. At the same time, we need to continue to make sure that we are using the dollars that we do have, the dedicated 2.33 (per cent), to build infrastructure that we know (will) stimulate jobs and economic growth,” said Bowman.

The 2022 financial blueprint is considered an update to the city’s multi-year 2020 to 2023 budget. It follows massive declines in Winnipeg Transit fares, parking fees and hotel taxes, among other losses linked to the COVID-19 pandemic. The response to the virus included multiple public health shutdowns and advisories that Winnipeggers “just stay home” when infection rates rose.

Bowman said the results of that will be felt over multiple budget years to come.

“I am very concerned about the rebound of finances at the municipal government… It’s going to be a multi-year recovery for the City of Winnipeg’s municipal finances and that’s going to require very thoughtful, careful deliberation by members of council,” he said.

This year’s budget working group will only include members of the executive policy committee. In the past, it included the deputy mayor and acting deputy mayor.

Bowman said he felt the budget update could be handled by EPC’s seven members.

Coun. Kevin Klein, a non-EPC councillor, has raised several unsuccessful motions to allow all 16 members of council to become part of the budget working group. Klein said he’s concerned sticking with a smaller group keeps many elected officials from having full input into the city’s financial plan.

“Everyone represents (thousands of) Winnipeggers. They should have a say there,” said Klein.

The mayor said he believes finance chairperson Scott Gillingham has been “outstanding” in reaching out to council members for input, which addresses that concern.

“For those that do want to participate in input before (the budget update is) tabled, that door is wide open,” said Bowman.

The city has not released a date for the release of its preliminary budget. Council is expected to cast a final vote on it before the end of the year.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga