'This time, it's different,' Winnipeg mayor says as he makes plea for new funding model from province

Scott Gillingham acknowledges he's far from the first mayor of Winnipeg to try to squeeze more money out of the provincial government, but he insists the need is only becoming greater.

"I know you've heard mayors stand in front of events like this before and in the past and say we need a new funding model," Gillingham told an audience of business leaders at a breakfast event Tuesday.

"But folks, this time it's different."

The city is no longer "talking about trying to get funding for bells and whistles of legacy projects," he said. "We're talking about funding for basic services like pipes, pavement and police."

The experience of trying to build budgets under tight economic circumstances has influenced his approach to lobbying the provincial government, Gillingham told the 2024 Leaders' Forum on Growing the Economy at Canad Inns Polo Park, organized by several business organizations in the city. 

Gillingham said he wants a new financial model that would give the city a form of revenue that grows with the economy. While he didn't provide examples, some options could include a share of the provincial sales tax or gas tax. 

He said he's had an "open conversation" with the NDP government about a new funding model, but he wants to see progress. 

"Now is the window of opportunity, but I'll be frank, the City of Winnipeg and I need your help to continue to advocate for a model that positions Winnipeg for long-term success," he told the business crowd.

As it stands, the city's revenue sources are limited — it charges property taxes and some user fees, while receiving grants from senior levels of governments.

Gillingham told the audience that means that unlike cities, provincial and federal governments see the benefits of investing in economic growth relatively quickly.

For example, they can collect taxes from a construction worker filling up on gas or buying supplies, while "the City of Winnipeg has to wait until the pipe's in the ground, someone comes in to build a widget-making factory, builds their building, and the assessed value of that property goes up and they start paying property taxes," Gillingham said.

"Our return of investment on an economic investment takes years and years to begin to recoup."

In its first budget this past spring, the provincial NDP government promised to create a new multi-year funding model for municipalities, but so far it hasn't said how.

Municipal Relations Minister Ian Bushie stressed the province is facing its own fiscal issues.