Winnipeg budget hikes taxes, fees and infrastructure funding

WINNIPEG – Property taxes, frontage levies and garbage collection fees are going up, and so is the amount of money the city is spending to fix Winnipeg’s roads.

The nearly $1-billion preliminary operation and capital budget, introduced Tuesday afternoon, includes a 2.3 per cent property tax increase. One per cent will go towards roads and .3 per cent towards operating service costs. The increase adds another $37 per year to the city portion of the average property tax bill.

“This has been a very challenging process,” Mayor Brian Bowman said. “While we faced immense and difficult choices, I’m pleased the budget … includes a modest tax increase and record funding for street renewal.”

READ MORE: Winnipeg tax hike to help pay for rapid transit

Starting in 2016, the city will introduce another .33 per cent tax increase that will go directly towards Bus Rapid Transit.  That tax increase will continue for 10 years to support the project to completion.

Homeowners will also see a rise in their frontage levy, with the 60 cent per foot increase adding up to $30 per year for an average 50-foot lot.

It’s all part of the plan to put more dollars into infrastructure than ever before, city officials say. The city plans to spend $103 million on its regional and local street renewal program this year. It spent $30.9 million in 2012.

Money will be spent on improving roads as well as on a $3-million Transportation Management Centre, a “hub” that will monitor traffic flows, synchronize signals and use social media to provide travel information. It is scheduled to be operational by 2016.

READ MORE: Mayor Brian Bowman updates Winnipeggers on promise list

Winnipeggers will pay for the changes in many ways: the annual garbage collection fee jumps from $50 to $55 and the city has also  changed to the dividend policy for utilities, which could see the average water bill per quarter rise $10 in 2016.

It’s also introduced a set of new fees, such as for legal services for commercial leases and tax sales.

The preliminary operation budget is up $26.3 million over last year.

The city is deeply in the red. The city will grapple with a $73.4-million deficit in 2016. It’s expected to hit $115.2 million in 2017.

To help offset that deficit and pay for additional expenditures, a total of $9.2 million will be transferred from the financial stabilization fund to the general revenue fund this year.

Highlights of the 2015 Winnipeg budget:

Cuts: 

Operating grants to CentreVenture will drop $250,000 this year.

The city will also cut costs by reducing pool hours at some locations, or closing parts of pools, for savings of $100,000 in 2015 and $300,000 in 2016. There will not be any closures, city staff say.

The city plans to save an additional $3 million in vacancy management, for a total of $17.7 million in savings this year.

Spring sweeping will continue, but cleanup in the summer and fall will be eliminated, for an annual savings of $700,000. Residents will be asked to not sweep leaves from their yards onto streets to prevent drainage problems.

Doing business in Winnipeg?

Tree or shrub removal will cost an additional $75 ($310 from $235).

Garbage disposal for large items will go to $10 from $5.

Escort licence rises $71 dollars (up to $334 from $263).

Precious metals dealer will pay $227 more for a licence (to $875 each from $648).

Burial fees

Interment for cremation rises $40 (to $410 each from $375).

Double plot up $295 (to $3,250 from $2,955).

Other highlights

Winnipeg Police Service budget will rise $4.9 million, to $264 million.

Fire Paramedic Service funding jumps $10.5 million to $178.3 million this year.

The business tax is being reduced to 5.6 per cent from 5.7 per cent.

The city is going ahead with plans for a downtown dog park.

Mosquito larviciding will be 100 per cent biological.