Can’t cut your way to being a better city

Winnipeg has struggled with cheap property taxes for decades, resulting in insufficient funds to balance the budget, maintain infrastructure, deliver services and respond to challenges such as homelessness and the toxic drug crisis. As a consequence, Winnipeg spends less per person on city services compared to other Canadian cities in 2001.

The city has run deficits almost every year since the COVID-19 pandemic due to climate-driven heavy snowstorms, higher fuel costs and increased policing overtime. Public services, particularly those responsible for community amenities, have been severely cut. Since 1999, community services have seen an 18% reduction in staff positions despite a 35% increase in population.

Winnipeg's operating expenditures per person are among the lowest in Canada at $2,463, while other major Canadian cities such as Edmonton, Calgary, Vancouver, Ottawa, and Toronto have higher expenditures per capita. Property tax increases under the current administration have been around 3.5-5.95% annually, while the average Canadian city experiences a 5% increase.

Factors such as inadequate public services being paid for by residents through private means or inconvenience, deteriorating neighbourhood infrastructure, and shrinking planning capacity further exacerbate the problem. The Canadian Centre for Policy Alternatives — Manitoba has proposed a municipal budget that aims to rebuild fiscal capacity, rather than rely on limited revenues.

This budget suggests an additional $103.1 million in annual revenue through property taxes, impact fees on new development, commuter charges, parking-lot levies, and raising the business tax by 10%. The proposal also includes a property tax refund for low-income homeowners to offset the increase. In the upcoming municipal election, it is crucial to discuss the distribution of costs and benefits among residents and the kind of city being built.