Winnipeg city budget tax increase to pay for COVID-19, police pension overruns

The City of Winnipeg tabled a balanced budget Friday, despite cost overruns totalling $43.5 million.

The budget includes an expected property tax increase of 2.33 per cent for the next two years, a cap that has been part of budgets for the past several years.

That means the average homeowner will pay about $43 more in property taxes in 2022.

Asked why he kept the property tax increase at 2.33 per cent when the city is in a shortfall, Mayor Brian Bowman recalled his promise to keep yearly increases at that level and pointed to higher-than-normal inflation rates.

Most of the 2.33 per cent, usually designated for road improvements, will go to help cover the city’s overruns, while the rest will go to transit.

1:52 Richard Cloutier breaks down the 2022 City of Winnipeg budget

“It wasn’t my first choice,” said Bowman, when asked about moving road improvement money to cover cost overruns.

However, the roads budget is once again a record breaker, with $164.7 million for road renewal, or about 1,035 kilometres of roads, said the city, thanks to the City’s share of revenues from the Federal Gas Tax fund.

About $320 million is earmarked to run the Winnipeg Police Service (both capital and operating expenses), or 26.8 per cent of the budget.

The budget includes 10 fewer positions, from 9,139 to 9,129 full-time equivalent positions.

Finance committee chair Scott Gillingham presented the preliminary budget Friday afternoon to the executive policy committee, and it will be debated and discussed at committee meetings over the next two weeks before going before council on Dec. 15.

The total budget, which includes taxes, grants and transfers from other levels of government, is $2 billion.

We break it down by the numbers below:

The shortfall – $43.5 million

• Net transit shortfall due to COVID-19 – $26.4 million
• Winnipeg Police Pension Plan shortfall – $12.5 million
• Costs around new federal holiday (truth and reconciliation) – $3.4 million
• Lower parking revenue – $5.4 million
• Lower recreational fee revenues and cleaning costs – $2.7 million
• Lower entertainment tax revenue – $1.6 million

The shortfall offset – $43.5 million

• Two per cent property tax increase allocation – $12.6 million
• One-time draw from fiscal stabilization reserve – $10 million
• Management expenditure savings at Winnipeg Police Service – $6.1 million
• Internal debt financing by replacing cash to capital $5.4 million

Growth initiatives

• $164.7 million for road renewals this year
• $28.6 over six years for Winnipeg’s tree canopy
• $60 million increase to $240 million over the next six years for sewer work
• $10 million for projects to support economic recovery in the downtown
• $8.9 million in roads for pedestrian and cycling infrastructure
• $872.9 million over the next six years for local and regional road renewal

Other numbers

• $1.1 million for mobile outreach services to help address homelessness
• $580,000 for public downtown washrooms
• $27.3 million over six years for fire stations in St. Boniface, Windsor Park, Waverley West, Silver Heights and a mobile modular station
• $23.8 million for capital improvements in local pools, rec centres, spray pads, parks and open spaces
• 4.84 per cent – business taxes frozen at this rate, same as last year

Roads to see renewals:

• Zoo Crescent and Conservatory Drive
• Wall Street from St. Matthews Avenue to Notre Dame Avenue
• Munroe Avenue from Raleigh Street to Henderson Highway
• Jubilee Avenue from Osborne Street to Pembina Highway
• Mountain Avenue from Arlington Street to McPhillips Street
• Mattinee Bay
• Leila Avenue from McPhillips Street to McGregor Street
• William Avenue from Arlington Street to McPhillips Street
• Stafford Street from Corydon Avenue to Pembina Highway
• Archibald Street from Plinguet Avenue to Doucet Street
• Sturgeon Road from Ness Avenue to Hallonquist Drive
• Briar Cliff Bay
• Moore Avenue from River Road to St. Mary’s Road
• Winona Street from Kildare Avenue West to Regent Avenue West
• Chancellor Drive from Augusta Drive to Quincy Bay