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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Winnipeg residents to face frontage levy increase, not property tax hike






Winnipeg City Council has rejected a motion by Transcona representative Russ Wyatt to cancel the 47% frontage levy increase in this year’s operating budget.

Wyatt was also proposing to do away with several recreational fee hikes.

The motion was defeated by a 11 to 5 vote.

He was instead calling for a 3.75% property tax hike he says would raise $15 million.

The City is proposing to raise the “street renewal frontage levy” for the first time since 2001 by $1.20, a 47% hike. That means a 50-foot front yard would cost that homeowner about $60 a year and generate an additional $14.4 million.

Wyatt called property tax “far more progressive” than the frontage levy arguing it’s based on a home’s value rather than the width of a front yard.

Council then passed the $847 million operating budget by a 10 to 6 margin.

http://www.globalwinnipeg.com/Winnipeg+residents+face+frontage+levy+increase+property+hike/4484614/story.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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Katz hints tax freeze to stay





MAYOR Sam Katz hinted Winnipeg’s long-standing property tax freeze would continue for another year just days before the city releases its annual operating budget.

Katz is set to table the city’s 2011 operating budget on Monday and said his goal is to keep taxes frozen this year. However, he said it’s becoming more difficult to balance increased spending on city services with limited revenues, noting this year’s spending blueprint was his “most challenging” to date.

Katz did not explicitly say there would be no property tax hike this year, but said it’s his goal not to lift the freeze.

“I don’t think it would be realistic to think property taxes are going to be frozen forever,” Katz said on Friday. “The goal for this year is to basically keep the taxes frozen.”

The $800-million-plus budget will outline the city’s spending on policing, emergency services, insect control and other programs. Last year, city spending increased by about $30 million, the bulk of which went toward salaries and benefits.

Last year’s budget was $817.7 million, up from $787.2 million in 2009.

This year’s increase could be even higher, as the city heads into multiple rounds of labour negotiations to determine the wages and benefits of more than half of all city employees. Katz said bargaining can “most definitely” impact the operating budget, and Winnipeg could be looking at an extra $20 million to $30 million when negotiations are complete.

At the same time, Katz said Winnipeg has added more police, cadets and a new helicopter to its public safety arsenal. Compounding matters is the threat of a spring flood, which provincial forecasters say has a one-in-10 chance of reaching 1997 levels.

“Trying to find the balance between it all is not an easy task, because you know the revenues are not even growing as fast as inflation is,” Katz said. “So you know, there are challenges but I think we’ve come up with some very good ideas to move this forward.”

The mayor has remained tight-lipped on how Winnipeg will strike this balance, but the city will have access to an additional $5.3 million from settling the dispute over municipal gas and electricity taxes with Manitoba Hydro.

This year’s annual operating budget will be tabled later than usual, amid speculation the mayor was waiting for a report from the Infrastructure Funding Council, a task force struck last year to look at options for generating revenues to repair Winnipeg’s infrastructure backlog. The council was to examine internal and external revenue sources, including user fees, property tax, fuel tax and income tax.

Katz said he’s “disappointed” the report wasn’t available before the operating budget was tabled, but expects it will be released sometime this.

For the past two years, the city has relied on disputed money to balance its operating budget. In 2010, the city banked on a contentious $10.6 million from Manitoba Hydro, and only wound up receiving half of that — too late to avoid incurring an on-paper deficit for the year.

The city also used one-time transfers to balance the 2010 operating budget.

In 2009, the city relied on $11.5 million in undefined “new funding” from the province, which it did not receive, but still managed to balance its budget.

http://www.winnipegfreepress.com/breakingnews/Katz-hints-tax-freeze-to-stay–117456613.html

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Strike vote not a factor: mayor ??

WINNIPEG’S spending plan for 2011 won’t be revealed until early March — but not because of the ongoing labour dispute with the city’s largest union, Mayor Sam Katz said.

Katz told reporters Wednesday he plans to table the city’s operating budget on or around March 5, which is later than usual but well within the time frame required for council to debate the spending blueprint, which must be passed before the end of March.

The operating budget outlines the city’s spending on all programs, from policing to health inspections.

It has ballooned by tens of millions of dollars per year in recent years, primarily because of increasing wages and benefits.

As a result, the city has offered its largest union, the Canadian Union of Public Employees Local 500, a wage freeze for the first two years of a four-year contract, both sides have confirmed. This has led to a Friday strike vote.

The outcome of that vote, however, will not affect the operating budget, Katz told reporters Wednesday.

“This is no different than snow removal,” said the mayor, referring to volatile budget line items that require the city to find more money at the end of the year, if necessary.

Katz also said the budget will not be affected by a pending report from a Chris Lorenc-led infrastructure council the mayor struck in 2010.

If that committee recommends a property-tax hike, he is not bound to heed them, Katz said.

“Whatever recommendations come forward, (they’re) not going to happen overnight,” the mayor said.

The city has frozen the pool of property taxes collected from existing Winnipeg properties since 1998. Katz has pledged to do what he can to avoid a rate hike this year, but has not ruled out ending the freeze.

http://www.winnipegfreepress.com/local/Strike-vote-not-a-factor-mayor–116396059.html

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Feeling broke? Just you wait

Winnipeggers counting on their next paycheques to pay off their holiday bills may find there is a little bit less coming their way.

A myriad of municipal fee hikes and federal payroll tax increases will eat away at your take-home pay in 2011.

“Every single working individual and family in the country is going to take home less because of the government,” said Derek Fildebrandt, national research director with the Canadian Taxpayers Federation.

January paycheques are already somewhat lower than their December counterparts for most Canadians as Canada Pension Plan and Employment Insurance premiums begin coming off again after most Canadians enjoyed several months off from the premiums.
This year, both are going up.

Every Canadian earning more than $44,200 will end up paying $39.40 more in EI premiums and anyone earning over $48,300 will pay an added $54.45 in CPP contributions.

The EI maximum is now $786.76 and the CPP maximum is $2,217.60.
Fildebrandt said the government ended up hiking EI premiums less than was initially speculated, which might make some people feel grateful for the relief. But he notes that is like a municipal government guesstimating a property tax hike of five per cent and only implementing a hike of four per cent.

“We feel like it’s a gift,” said Fildebrandt.But the only gift is to the government.

Bracket creep and the effect of inflation on wages will also send more money to the taxman and less to your wallet. Bracket creep is that annoying habit of governments getting to tax people at higher income brackets as their wages grow to reflect cost-of-living increases. It effectively claws back the benefit to individuals of getting a raise. Manitoba is one of only three provinces that doesn’t adjust its tax brackets for inflation, at all. The federal government does so based on a two-year average. Either way, if you were lucky enough to get a cost-of-living wage adjustment for 2011, it will likely mean you end up paying a higher percentage of your income in taxes.

According to Canadian Taxpayers Federation calculations, a single Manitoban with no children who got an inflation-based raise of about one per cent, and now earns $60,000, will pay $110 more to the government this year. A dual-income family with two children earning $100,000 will shell out $176 more to the taxman.

City dwellers will also end up paying more to municipal governments for a number of services. Winnipeg water and sewer rate hikes will push the average household water bill up by $46.40 in 2011. If you take the bus, you’re going to pay another nickel for each ride.

The city is also hiking numerous other fees for such things as scattering cremated remains at a public cemetery (up $5 to $215), water trucked in to communities without city pipes (up $2.10 per 1,000 gallons to $12) and thawing residential water pipes (up $100 to $200).

Whether your property taxes increase or not won’t be known until February when the city budget is tabled. There is some silver lining in the tax rain clouds, however.

Manitoba Public Insurance premiums will fall four per cent in 2011 and MPI is going to send you a rebate cheque worth 10 per cent of your 2009-10 vehicle premiums before May 31.

http://www.winnipegfreepress.com/local/feeling-broke-just-you-wait-112856044.html

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Block property tax hike

When Mayor Sam Katz renews his commitment to a property tax freeze at the State of the City address Tuesday, the usual critics will whine that city hall can no longer afford a freeze because it needs the money to fix our crumbling bridges and roads.

They’ll argue a property tax freeze would force the city to budget with virtually the same revenue it did last year, causing it to fall further behind on its infrastructure deficit.

Costs are rising and the city’s needs are growing, the critics will say. Therefore, we need to raise property tax rates to pay for those growing expenses.

It sounds like a reasonable position. How can city councillors freeze taxes every year and expect city hall to keep up with growing expenses and a backlog of infrastructure projects?

The answer is fairly simple. Despite the tax “freeze,” city hall revenues have been soaring in recent years, both from higher tax revenues and user fees and from skyrocketing government transfers.

The city’s total consolidated revenues — which include everything from taxes and sewer and water rates to bus fare and licence fees — have grown a staggering 32% from 2004 to 2008, according to the city’s 2008 annual report.

City coffers took in $969 million in 2004. That jumped to $1.27 billion by 2008.

Taxation revenue alone — which includes all city taxes such as property, business and consumption taxes — increased 6% during that period, despite the tax freeze and a business tax cut.

User charges, including revenues from ballooning sewer and water rates — money raised in part to pay for expensive sewer and water upgrades — jumped 27% to $328 million.

Government transfers from both the province and the federal government more than doubled to $213 million in 2008 from $94 million in 2004.

And interest income and “other” revenues soared to $123 million from $54 million four years earlier.

Not all of that money goes into the city’s general revenue fund. Some of it stays with utilities, such as water and waste, and some goes into reserves. But it’s all city revenue and it all comes from one pocket: the taxpayers.

The city may have frozen your property taxes, but they’ve jacked up your sewer and water rates, increased your frontage levy and charged you higher taxes on your hydro bill because of increased electricity rates.

If you’ve renovated your property under a building permit, your taxes have gone up. Licence fees have increased across the board.

And even the amount the city charges you at Brady Landfill for residential use has doubled.

Add in the fact that the number of taxable properties in Winnipeg has jumped to 211,048 in 2008 from 205,366 in 2004 and you can see how city hall is raking it in.

So this nonsense about how a “freeze” would starve the city of much-needed cash is based entirely on misinformation and political spin.

The city doesn’t need more our money. If anything, they need to control their spending.

City hall’s salary and benefit costs jumped 14% to $564 million in 2008 compared with $496 million in 2004, according to the city’s annual report.

Supporters of a tax hike are demanding a “modest” 1% to 2% increase this year, which would raise $4 million to $8 million.

I have a better idea. Take the $8 million from salaries and benefits budget and leave taxpayers alone.

They pay enough already.

http://www.winnipegsun.com/news/columnists/tom_brodbeck/2010/01/25/12610331.html

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Majority of Winnipegers favor Tax Increase

A survey conducted by the Leger Marketing convey that most number of Winnipeg voters are in favor of raising property taxes to ensure that service levels are maintained rather than risking quality services just to cope with the city’s tax freeze.

property tax thumb Majority of Winnipegers favor Tax IncreaseSurvey revealed, out of 800 respondents, 56 per cent are agreeing to raise property tax; 38 per cent chose to keep the city tax freeze; and the rest are undecided about the issue.

Surprisingly, this poll result has become an election issue, whereby it suggests that majority of voters are in line with mayoral candidate Judy Wasylycia-Leis’ property tax hike proposal. On one hand, only the minority favors Mayor Sam Katz solution. Katz who has been major critic of Wasylcia-Leis’ proposal said, that he’s plan is similar to picking “low-hanging fruit” and has made property tax hike as his last option.

Winnipeg city has one of the cheapest municipal property tax in Canada. The city has frozen it’s property tax value for the past 13 years, beginning from Susan Thompson’s administration until Glenn Murray and Katz governance.

According to Wasylycia-Lei, raising taxes two per cent a year for four years would accumulate an additional $90 million revenue for the city. However, Katz has emphasized that the increase would badly affect those seniors and people with fixed incomes. Ironically, he has refused to rule out tax hike of his own in 2011.

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Majority of Winnipeg voters favor property tax hike, poll revealed

Ledger Marketing survey findings, most Winnipegers are more favor of a property tax hike than a property tax freeze— this is to keep service levels in control and not the opposite.

Survey had shown that 56 per cent of Winnipeg adult opted for a raise in property tax, while 38 per cent of the total subjects chose to keep the tax freeze, and 6 per cent has no say about the issue, this is out of 800 randomly picked adults from the recent month.

Result suggests that a larger number of Winnipeg voters are in line with mayoral challenger Judy Wasylycia-Leis’ proposal to raise property taxes. The rest are with Mayor Sam Katz, who disapprove Wasylycia-Lei’s plan as picking “low-hanging-fruit” and has promised to treat property-tax increases as the last option.

Property tax has been frozen for 13 years now. This was initiated under Susan Thompson’s administration and continued through Glen Murray’and Katz’s governance.

If the 2 per cent hike would be implemented this would generate an additional $90 revenue. The move would also see the average annual tax burden for a Winnipeg property wind up being $200 higher in 2014 than it is today, according to city assessment and taxation figures.

On one side, the proposed tax increase would affect seniors and people with fixed income, said Mayor Katz.

Wasylycia-Leis has repeatedly challenged Katz to present a revenue plan of his own.

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Big teachers’ raise may trigger property tax hike

THE largest teachers’ wage increase in at least two decades in the Winnipeg School Division could help drive school boards together on a united bargaining front next year.

And the contract might produce a property tax increase in the division.
On Tuesday, the morning after giving teachers an overall 3.8 per cent raise, the Winnipeg School Division is talking up the need for province wide bargaining.

“It’s important to work collaboratively, with other divisions” to ensure consistency with what teachers get paid, WSD finance chairwoman Kristine Barr said Tuesday.

“The reality is, teachers work with the Manitoba Teachers’ Society, trustees work with the Manitoba School Boards Association,” said Barr.

A majority of school boards has opposed province wide bargaining, while teachers’ wages have steadily increased to annual packages of three per cent plus cash in almost every division.

In the past, “Winnipeg School Division has seen provincial bargaining as a positive change,” said Barr. “It’s certainly something to explore.” Only one division has settled for 2010-11. Louis Riel teachers received 4.82 per cent this year, and next year get two phased-in increases of 1.5 per cent, compounding to 3.03 per cent.

Barr said divisions are looking at one-year settlements so they can strategize a uniform approach to bargaining.

WSD board chairwoman Jackie Sneesby said the 2009-10 deal approved Monday night is an overall 3.8 per cent increase.

“It’s three per cent, plus adjustments to scale,” which see teachers receive additional cash ranging from zero to $732, Barr said. “There is a significant portion of our teachers who would receive the maximum.”
Had the two sides not approved the new contract, it would likely have gone to binding arbitration, where teachers could have been awarded an even higher raise. “That’s a definite possibility,” said Barr.

The settlement is the largest for the division’s teachers in at least two decades. The Winnipeg Teachers Association had received a straight three per cent increase for the previous five years, and lesser amounts prior to that.

Barr said the agreement puts WSD teachers in the middle of the pack for city teachers.

Winnipeg teachers with 10 years experience, an undergraduate degree and an education degree are earning around $77,000 to $79,000. Rookie teachers with both degrees earn about $50,000 to $51,000 in city divisions this year. Precise figures based on recent contract settlements are not available yet.

Barr said differences in maximum salaries among divisions are miniscule compared to differences in benefits and working conditions.

She hinted that the settlement could mean an increase in property taxes, though cautioning that provincial operating grants won’t be announced until late this month.

“We’ve got a history in Winnipeg School Division of maintaining services and programs,” Barr said. “If it means an incremental tax increase, that’s what the division has done in the past.”

“What we settled for is three plus cash,” said WTA president Dave Najduch.
The cash, to be paid out in two phases, ranges from zero to $732 per teacher.

There is no simple way to characterize who gets cash, or how much cash, he said.

“It’s not a signing bonus,” said Najduch, who emphasized the cash will be built into the base of the contract when talks begin for a 2010-11 deal.

“It’s in line with what everyone else is getting,” said Najduch. Teachers are still trying to catch up with the raises they didn’t get under the Filmon Conservatives, he said: “There was a time in the ’90s when our increases were zero.”

The base raise for teachers became three per cent early in the decade. In recent years, some divisions added various additional cash, or built in catch-up with neighbouring divisions. In the 2009-10 school year, almost every division’s contract is three per cent plus some form of cash.

The highest previous cash addition was $550, paid this year to all teachers in Dauphin-based Mountain View S.D. It is phased in over two payments.

http://www.winnipegfreepress.com/breakingnews/big-teachers-raise-may-trigger-property-tax-hike-81304117.html

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  • Free Success Ebook: “How to Turn YOUR Ability into CASH” by Earl Prevette – Free Download! Negative thinking is a sneaky little enemy which silently steals its way into a man’s consciousness and, like a thief at night, steals not his purse, but robs him of that power which makes him...
  • Beware the Cash-Out Re-Fi This has been a good news week for homeowners looking to re-finance their mortgage loan into a lower rate.  Mortgage interest rates fell sharply this week following more rescue actions by the government.  The average...
  • Reading other PF bloggers A few good articles I read this past week: The first article, on 401(k) planning is titled,"Should You Stop 401k Contributions When There's No Match?" The author (there's no byline) offers a nice chart comparing...