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Winnipeg proposes 2.33% tax increase in 2017 preliminary budget

Click to play video: 'Winnipeg’s preliminary budget break down on Global News Morning'
Winnipeg’s preliminary budget break down on Global News Morning
Winnipeg’s preliminary budget break down on Global News Morning – Nov 23, 2016

WINNIPEG — The City of Winnipeg  is proposing a 2.33 per cent increase in property taxes in its 2017 preliminary budget.

The preliminary budget of more than one billion dollars, was released Tuesday morning at a special Executive Policy Meeting. The budget shows the Winnipeg police are getting less funds than they were last year, infrastructure spending is staying the same and property tax is going up.

“We won’t be building the Simpsons monorail with this budget,” Mayor Brian Bowman said when asked about the funds dedicated for major infrastructure projects.

“This is a fiscally prudent budget, it’s balanced and responsive to those that are asking we get our own house in order,” he said.

The property tax increase would result in the average homeowner paying $38 more a year in tax. The average home in 2017 in Winnipeg is around $288,190.

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RELATED: City of Winnipeg to release draft budget this November, asking for public input

Two per cent of the property tax increase is dedicated to regional and local roads, and 0.33 per cent is going towards rapid transit. This is the same as last year’s budget.

The taxes are rising at the rate of inflation, which is a campaign promise Bowman ran on in 2014.

Infrastructure and street renewal

Although more funds are going into infrastructure in the 2017 budget, the amount of cash is still the same from last year. The street renewal program this year is $105.2 million, which is the same as the 2016 budget.

“The hike in property tax is to prevent cuts and other fees ,” Bowman said. “This ensures record spending can continue.”

Funding for the transit budget is down around $9 million in the 2017 preliminary budget.

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Despite a decrease in funding for transit, there is $191 million set aside for spending.

This includes more than $50 million going towards revamping and bus maintenance facilities, and spending $22.4 million on new buses.

The preliminary budget is also adding funds for extended bus routes.

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Amber Trails is extending its route to the Maples, and providing service seven days a week.

Bridgewater Lakes and Bridgewater Centre also is getting extended routes. Routes 84 and 86 will have service seven days a week, all day service.

RELATED: Councillor slams lack of bus service in south Winnipeg neighbourhood

Route 72 in South Pointe not has daytime service connection the area to the University of Manitoba.

Police and fire services

The amount of funds headed towards the police budget is less than an increase than last year. A total of $288 million is going towards the police service, which has gone up the rate of inflation (an increase of $7 million from $281 million in 2016).

“It’s tied with the rate of inflation,” Bowman said. “It will require financial discipline for the police board.”

The budget for Fire and Paramedic Service has gone up more than four per cent from 2016 (a total of $199 million). This includes money for more firefighting equipment, maintaining existing fire halls and enforcing new fire prevention.

Portage and Main

The re-opening of Portage and Main is not included in the 2017 preliminary budget. Bowman had previously said he hoped to have the intersection open to pedestrians by the 2017 Summer Games in July. However, the project did not make the cut, as it was too “premature” to add in the budget, Bowman said.

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“I would have like to see it open a long time ago… but there is still a lot of work ahead,” he said.

Bowman added there are still conversations needed with business owners in order to move forward.

The cost of opening the intersection is still not known, Bowman said.

Other 2017 budget highlights

  • Business tax is slightly going down from 5.3 per cent to 5.25 percent.
  • $750,000 is going towards the 2017 Canada Summer Games.
  • $20 million for a new police station in north Winnipeg.
  • $5.2 million is going towards the Tache Promenade, a pedestrian promenade along the Red River between the Provoncher and Norwood Bridge.
  • $1.75 million to support the Aboriginal Youth Strategy.
  • Nearly $8 million is going to repair and upgrade the Seven Oaks pool.
  • Assiniboine Park Conservancy is getting $10.8 million for infrastructure renewal efforts.

No increases

There is no increase in frontage leverage fees, which is staying at $5.45 per square footage.

Water and sewage rates are also staying the same.

Growth fees

Impact fee are not not being used in the operating and capital budget however $1 million is included in the reserve fund.

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What’s next?

After the tabling of the budgets Tuesday, the schedule of meetings to hear delegations and consider the preliminary 2017 Operating and Capital budgets include:

Nov. 28, 2016
Standing Policy Committee on Water and Waste, Riverbank Management and the Environment

Nov. 29, 2016
Standing Policy Committee on Infrastructure Renewal and Public Works

Dec. 2, 2016
Standing Policy Committee on Protection and Community Services and Parks

Dec. 5, 2016
Standing Policy Committee on Property and Development, Heritage and Downtown Development

Dec. 6, 2016
Winnipeg Police Board

Dec. 8, 2016
Special Executive Policy Committee to hear delegations on budgets

Dec. 9, 2016,
Special Executive Policy Committee to consider Standing Policy Committee recommendations and table final recommendations

Dec. 13, 2016, 9:30 a.m.
Special Meeting of Council to pass budgets

 

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