City of Winnipeg making 'tough decisions' to hold the line on 3.5% property tax increase

The chair of Winnipeg's finance committee hopes residents see their priorities reflected in the budget set to be released on Tuesday.

But while Coun. Jeff Browaty says city departments went to great effort to maintain services while minimizing the financial burden on taxpayers amid rising costs, one expert warns the city's lack of income will mean cuts down the road.

The preliminary budget will be tabled during a special meeting of the executive policy committee Wednesday afternoon at 2 p.m.

Mayor Scott Gillingham has already committed to increasing property taxes by 3.5 per cent.

At the same time, the city is facing financial pressure on virtually everything it spends money on, including wages, construction materials and fuel, Coun. Jeff Browaty says.

"There's not a lot of new additional money," he said.

"We asked the departments to get out their pencils and figure out every opportunity to minimize the impact of inflation and try to minimize any impact that would have on the delivery of services to Winnipeggers."

Winnipeg's situation is not unique. 

Brandon city council passed a budget over the weekend that increased municipal taxes in Manitoba's second-largest city by 9.4 per cent. 

Browaty says Brandon's tax increases in recent years have been below Winnipeg's, but acknowledged "tough decisions were made throughout the whole process."

Winnipeggers should not expect to see major funding commitments to large capital projects such as the expansion of Kenaston Boulevard, extension of Chief Peguis Trail, or the Arlington Bridge replacement, Browaty says.

Last month, following a confidential budget briefing, Coun. Russ Wyatt told CBC News the city planned to increase departmental budgets by two per cent, which effectively amounted to a cut, because it falls below the rate of inflation.

Browaty does't deny the accuracy of the figure Wyatt cited, but says it doesn't take into account increases to wages set out in collective bargaining agreements, the largest driver of increased costs at the city.

University of Winnipeg politics professor Aaron Moore says it will be difficult for the city to maintain a 3.5 per cent increase for the remainder of this council term, as Gillingham has committed to do.