Government

Winnipeg's Budget Plans: Property Tax Increases and Snow Plowing Cuts

Published December 11, 2024

Winnipeg is planning a significant increase in property taxes, possibly the largest seen in decades, as the city grapples with a financial strain. The preliminary budget for the upcoming year proposes a 5.95 percent hike in property taxes, following a 3.5 percent increase in the last budget.

In addition to raising taxes, the city is looking at potential cuts to snow plowing services. One major change being considered is a new pilot project whereby residential streets would only be cleared after at least 15 centimeters of snow, an increase from the current threshold of 10 centimeters. This adjustment aims to bring spending in line with the city’s fiscal realities.

Impact on Public Services

The proposed budget also emphasizes the need for spending restraint, with efforts targeting job vacancies in a bid to save $50 million. Along with cost-saving measures, there is a focus on enhancing public safety, with plans to hire 36 new police officers over the next two years and 24 additional firefighters. Furthermore, the budget allocates $1 million towards community-based crime prevention efforts directed at youth recreation programming, particularly in high-needs neighborhoods.

Challenges Ahead

Mayor Scott Gillingham has highlighted that the city’s revenue streams have struggled to keep pace with population growth and inflationary pressures. In light of this, his office conducted an opinion poll to assess public sentiment on the introduction of new taxes such as those on liquor sales or vacant buildings, noting that such changes would require provincial government approval.

The preliminary budget report indicates that Winnipeg’s fiscal model is outdated compared to other Canadian cities, pointing out the lack of a revenue-sharing agreement similar to those in cities like Regina, Saskatoon, Halifax, or Toronto. This has left Winnipeg in a weaker position when trying to explore diverse tax options.

The results of a recent poll by Probe Research showed that 56 percent of respondents believe the city requires funding from sources beyond property taxes, fees, and grants. The poll revealed that around 40 percent view additional financial support from the provincial government as the preferred method for generating new revenue, while about 17 percent suggested new municipal taxes could be a solution.

Winnipeg, budget, taxes