To freeze or not to freeze: that is the question

Winnipeg politicians will soon decide whether to continue the property-tax freeze for a 15th consecutive year.

Council finance chairman Scott Fielding (St. James) said officials have started to review whether it’s possible to maintain the property-tax freeze for the 2012 operating budget, the blueprint that outlines spending on all city programs, including police, pest control and snow removal. Fielding said it will be a challenge to continue the long-standing tax freeze, but there is a possibility the city may be able to transfer a surplus from the 2011 budget in an attempt to stave off a hike.

The latest city financial report at the end of October forecast a $600,000 surplus by the end of 2011, due in part to additional permit revenue and savings from its summer street program and corporate expenses. Fielding said it’s possible the city picked up additional surplus money in November and December, though officials will not have the year-end total until late January.

“It is going to be challenging to maintain a property-tax freeze,” Fielding said.

Last year, Winnipeg’s operating budget increased by $30 million from the previous year due to the rising cost of police and emergency services. About 40 per cent of Winnipeg’s $847.4-million operating budget in 2011 was devoted to police and fire paramedic services.

The city hiked property frontage levies to cover the cost of increased program spending.

Coun. Jenny Gerbasi (Fort Rouge) said only members of council’s executive policy committee are involved in operating budget discussions and she does not know how big of a funding gap the city faces. She said Winnipeg is coping with the cost of hiring additional police officers, pension benefits and paying down debt.

Gerbasi said cities such as Calgary have imposed modest property tax increases every year to generate revenue, while Winnipeg has frozen it for so long programs are “starving.” She said it’s possible the city is looking at raising fees — such as the frontage levy — like it did last year to avoid a tax increase. Gerbasi said she and other members of council worry executive policy committee may consider selling city-owned assets such as golf courses to generate revenue.

“A lot of us are very concerned about it,” Gerbasi said.

http://www.winnipegfreepress.com/local/to-freeze-or-not-to-freeze-that-is-the-question-136645423.html

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City councillor suggests property taxes could be set to rise in Winnipeg

A city councillor in Winnipeg is saying property taxes may be set to rise.

Coun. Justin Swandel (St. Norbert) is speaking up publicly about the possibility of property taxes increasing next year.

He said the increase could be five or six per cent.

Winnipeg has had a freeze on property taxes for the past 14 years.

Mayor Sam Katz would not rule out an increase when questioned Thursday.

“I think what I specifically stated over and over again is that you can’t expect a freeze to continue for forever and we’re getting to that point. I think that’s what I stated and nothing has changed from that whatsoever,” said Katz.

In March, the city raised homeowners’ frontage levies by more than a dollar for the first time in 10 years.

http://winnipeg.ctv.ca/servlet/an/local/CTVNews/20111117/wpg_property_taxes_111117/20111117/?hub=WinnipegHome

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City brochure ‘misleading,’ Wyatt says

City council’s most vociferous infrastructure critic is accusing the city of continuing to mislead homeowners about the purpose of this year’s frontage-levy hike — this time, using a routine mailout.

“This is very misleading,” Transcona Coun. Russ Wyatt said.

Every spring, the City of Winnipeg mails out a property-tax brochure to every homeowner in an effort to explain property tax bills.

This year’s brochure includes a paragraph about frontage levies, which council voted to hike to $3.75 per frontage foot from $2.55 per frontage foot. It was the first boost to the frontage levy in 10 years.

“This levy is used for upgrading, repair, replacement and maintenance of the city’s street and sidewalk infrastructure,” reads the brochure.

What the brochure does not say is the 2011 operating budget includes less funding for street and sidewalk renewals. While the frontage-levy hike will add $14.4 million to the road-repair budget, the council-approved spending plan calls for a $15.1-million reduction in property tax funding for the same repairs.

In March, when the budget was tabled, Mayor Sam Katz and finance chairman Scott Fielding (St. James) claimed the levy hike would pay for more repairs. But Winnipeg chief financial officer Mike Ruta confirmed that was not the case.

Opposition councillors lambasted Katz and Fielding for claiming to increase road renewals while spending less on them.

Wyatt renewed that charge on Monday, claiming the pamphlet is at best, misleading, and at worst, an abuse of a routine mailout.

“If you read it at face value, it looks like the money going to infrastructure is going up. Ratepayers wouldn’t be blamed for making that assumption, but the fact is, it’s going down,” Wyatt said.

“Residents should be aware this is not an increase for the sake of funding the streets. It was an increase so Sam Katz could balance the budget. It was a tax increase through the back door,” Wyatt added.

City assessor Nelson Karpa rejected the assertion his department’s pamphlet is inaccurate. The statement in the brochure is not serving any political ends, he suggested in a statement.

“The brochure that is enclosed with the realty tax bill always has been to provide information relevant to the tax bill,” Karpa said. “The brochure is not intended to address issues related to the City of Winnipeg operating budget.”

Wyatt, however, claimed the civic administration is being used to propagate a political message.

“This is not the first time this has happened and probably won’t be the last. The public service is no doubt following orders from their political master, being the mayor,” Wyatt said.

Katz’s office said it stands by the administration’s insistence the brochure is
accurate.

http://www.winnipegfreepress.com/local/city-brochure-misleading-wyatt-says-122854004.html

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Councillor to push for property-tax increase





A Winnipeg city councillor will table a last-minute motion Tuesday asking that proposed increases to user fees and frontage levies be axed in favor of a property-tax hike.

Coun. Russ Wyatt (Transcona) said Monday that he will present the motion in council chambers on the day city council meets to debate the $847 million operating budget.

Wyatt is one of six councillors who has voiced opposition to budget proposals to hike user fees across the board for recreational facilities and raise the frontage levy by 47 per cent.

Instead, Wyatt is proposing raising property taxes by 3.75 per cent after being frozen for the past 13 years.

He said doing that would be more transparent for taxpayers.

“I think it’s crucial that we do not do this shell game with the citizens of Winnipeg in terms of putting money into the frontage levies and taking it out the back door to balance the budget, I think we should be up front,” he said.

The increases currently being proposed will hit working families too hard, Wyatt told CBC News.

http://www.cbc.ca/news/canada/manitoba/story/2011/03/21/man-wyatt-increase-property-tax.html

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Tax increase better option: Vandal





St. Boniface Coun. Dan Vandal said lifting Winnipeg’s 14-year property tax freeze would have been a better way to generate revenue than raising frontage levies.

Vandal, a member of council’s executive policy committee, said councillors spent hours talking about the city’s financial challenges during recent operating budget meetings, and everything — including a possible property tax hike — was on the table. Vandal said he will support the decision to raise frontage levies, but thinks a property tax increase is a better option.

Vandal said a property tax increase is based on the value of a home, so homeowners whose properties are worth more, pay more. By comparison, a frontage levy is a flat rate.

“It doesn’t take into account the value of the property, that’s why I think a property tax increase would have been better,” Vandal said, following Tuesday morning’s public works committee meeting.

On Monday, Mayor Sam Katz tabled the city’s 2011 preliminary operating budget, which is the spending blueprint for $847.4 million worth of city programs, from policing to pest control to pool maintenance. The budget includes plans to generate $14.4 million by raising the city’s frontage levy by $1.20 a frontage foot, or 47 per cent. A homeowner with an average-sized 50-foot lot will pay an additional $60 this year.

Frontage levies may be used to pay for water and sewer upgrades, road and sidewalk repairs or improving street lighting.

http://www.winnipegfreepress.com/breakingnews/Tax-increase-better-option-Vandel-117587979.html

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Your 2010 reassessment notice

You will have received one or more of the following types of assessment notices:

•a real property notice for buildings and land
•a personal property notice for certain equipment or machinery
•a business notice, if you operate a commercial enterprise and your municipality levies a business tax or fee

This updated assessment may affect your 2010 property taxes. Please take a few minutes to review your notice, including the important information on the back.

The Manitoba Government is reducing property taxes across the province by:

•increasing the Education Property Tax Credit since 1999, to $650 in 2009.
•eliminating the Education Support Levy on residential property, saving residential taxpayers $100 million annually.
•increasing the Farmland School Tax Rebate to 75% in 2009 from 33.3% in 2004.

Why has my property been reassessed?

Under provincial legislation, all properties across Manitoba are being reassessed regularly to:

•ensure taxes are fairly shared according to the assessed value of owned or leased properties.
•ensure assessed values keep pace with real estate market conditions.
•help property owners understand and evaluate their assessments.

When does this new assessment become effective?

The new assessment becomes effective in 2010, and will be used on your 2010 property tax statement. Assessment notices are being mailed well in advance of the 2010 tax year to benefit:

•you as a property owner, as you will have more time to review your assessment and discuss it with an assessor.
• your municipality, as there will be more time to finalize assessments before the final roll is needed for tax purposes in 2010.

How can I get more information about assessments?

On the Internet

You can obtain assessment information via the Internet at www.gov.mb.ca/assessment where you will find:

•answers to frequently asked questions
•assessments of all properties in Manitoba except in Winnipeg (Winnipeg assessments are available at www.winnipegassessment.com)

Meet an assessor in a community near you

As well as being available at our offices, assessors will hold Open Houses in many communities, offering you a convenient opportunity to discuss your assessment. Dates and locations for the Open Houses are listed on the back of this brochure.

Property Tax Assessments to be Mailed Soon

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Your 2010 Property Assement Notice

Your 2010 City of Winnipeg Property Taxes Assessment Notice

When you receive your official brochur, you have received one or more following types of assessment notices:

- a real property notice for buildings and land

- a personal property notice for certain equipment or machinery

- a business notice.  If you operate a commercial enterprise and our municipalit y levies a business tax or fee

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