Winnipeg’s 2021 budget is a cautious, status quo proposal that prioritizes city growth while acknowledging challenges brought on by the COVID-19 pandemic.
There were few surprises in the proposed budget, which was presented to Executive Policy Committee Friday afternoon.
Local businesses will get some relief, with a $3 million grant program that small businesses can apply for and receive up to $1,500, and a new tax break threshold of $44,200, up from $35,700.
Mayor Brian Bowman said while the $1,500 won’t make or break a small business, it will help, and the new tax break threshold will mean an additional 1,000 small businesses in Winnipeg will not have to pay business taxes next year.
Business taxes remain frozen at 4.84 per cent.
Property owners will see their taxes raised by 2.33 per cent, which was expected, or about $42 per property yearly.
The property tax raise will be entirely funneled into road renewal and repair, for a total of $152.1 million spent in 2021.
However, the budget does acknowledge a shortfall of $83.6 million over the next three years, thanks mostly to a transit shortfall due to drastically decreased ridership and the police pension.
“The pandemic continues to have a tremendous impacts on residents, businesses, organizations and government,” said Mayor Brian Bowman.
However, the budget makes “significant investments into community services and infrastructure renewal.”
We break it down by the numbers below:
The shortfall – $83.6 million
- Net transit shortfall due to COVID-19 – $28.5 million
- PPE, other costs due to COVID-19 – $14 million
- Additional costs – $10.4 million
- Winnipeg Police Pension Plan shortfall – $30.7 million
The shortfall offset: – $83.6 million
- Promised provincial capital spending – $30 million
- Borrowing money – $10 million
- Savings from union negotiations with WAPSO – $12 million
- Adjustments to estimated amounts for future union negotiations – $16.3 million
- Winnipeg Police Service Budget savings, as determined by WPS – $15.3 million
Growth initiatives
- $152.1 million for road renewals this year
- $60 million for a new large sewer line (called an interceptor) in Southwest Winnipeg over three years
- $32.3 million to replace transit operating losses this year
- $131.8 million for 25 new Transit buses over the next six years
- $2 million for developers building affordable housing this year
- $11.4 million and $8.1 million in roads for pedestrian and cycling infrastructure over the next six years
- $864.1 million over the next six years for local and regional road renewal
Other numbers:
- $11.7 million for Assiniboine Park Conservancy this year, $12.1 million in 2022 and $12.4 million in 2023
- $180 million over the next six years to battle sewer overflows
- $3 million to help protect our tree canopy to a total of $40 million over the next three years
- $50 million for capital improvements in local pools, rec centres, arenas, community centres and libraries over the next three years
- 4.84 per cent – business taxes frozen at this rate, same as last year
Gillingham said Friday morning that the proposed budget is moving back to a November release as it usually was.
The city of Winnipeg moved to a multi-year budget process in 2019, resulting in the budget being finalized later than usual, in March of this year.
The four-year operating and capital budgets outline proposed spending for programming and infrastructure improvements.
Last year’s budget saw a property tax increase of 2.33 per cent and the business tax reduced to 4.84 per cent.
There were changes made to city library operating hours, the John Blumeburg Golf Course near Headingley was put up for sale, and $141 million was spent on road renewal.
Bowman announced on Wednesday that city staffers once again face layoffs due to COVID-19 closures.
“Unfortunately the provincial public health orders have directly impacted city services and our staff.”
Jason Shaw, who heads up Winnipeg’s emergency operations centre, said the city has been working with the Canadian Union of Public Employees to remove restrictions on collective agreements that exist for affected employees, meaning some may have the opportunity to be redeployed.