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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