Archived MHCA | Sept 2019

CMY K

4 SATURDAY, SEPTEMBER 21, 2019

A SUPPLEMENT TO THE WINNIPEG FREE PRESS

E very year, every Winnipeg property owner pays at least 2% more in municipal taxes. That’s a result of a deal to fix streets city council struck with Winnipeggers in 2013 and ’14. The revenues from that 2% tax flow to city coffers, into a fund dedicated exclusively for street repairs. But this year city council changed the terms of that agreement. The deal was that the budget for local and regional streets would rise annually by at least the amount raised each year through the tax. That didn’t always happen – some years there was no change in the budget level. But this year, city council fundamentally altered the deal. It voted to allow bridge work to be funded from the revenues raised by the 2% annual tax hike. Bridge work is expensive. The change means in any given year, the street repair budget might get none of the new revenues raised by the 2% tax. The city’s own financial records show the total expenditures on the bridge program from 2014 to 2019 amounted to $51.5 million. That total is slightly higher than the total of new revenues raised in the same period for the local and regional street renewal reserves. The Manitoba Heavy Construction Association asked the city administration for its analysis of how approving funding bridges from the special reserve would affect the annual street renewal budgets. An equally important question is how the change would affect the city’s capacity to reduce the infrastructure investment gap – the difference between what we need to expend to bring our streets up to good condition and what is being invested currently. According to the original plan, the local and regional street budget was supposed to hit $119.2 million this year. It is actually $105.6 million. No reply has been received from the city, yet. It’s a good question for Winnipeggers to ask their councilors - city council has not explained how, or if, it plans to stay on or near target to reduce the deficit in street repairs. With bridges now drawing from the street renewal reserve, how can Winnipeg manage to keep its streets in repair?

WINNIPEG’S BUMPY STREETS WHAT’S THE PLAN TO FIX OUR INFRASTRUCTURE?

The chart below sets out the forecasted bridge-work budgets, 2020-24, compared to revenue increases from the 2% tax hikes, according to Winnipeg’s 2019 Operating and Capital Budget.

CHABOT ROCK SOLID SOLUTIONS

BUDGET YEAR BRIDGES

LOCAL & REGIONAL L&R STREET

RESERVE

STREETS BUDGET

RENEWAL RESERVE INCREASE

(MILLIONS)

2020

5.65

111.6

75.0

11.6

2021

3.4

154.1

87.0

12.0

2022

10.0

164.5

99.4

12.3

2023

11.7

147.2

112.4

13.1

CHABOT ROCK SOLID SOLUTIONS

2024

19.9

137.8

125.8

14.4

CELEBRATING

TOTAL

50.65

715.2

499.6

63.4

The financial implications of allowing ‘bridges’ to draw on the street renewal reserves are evident. • From 2020 to 2024, bridge work expenditures are expected to total $50.65 million, vs. $63.4 million in new revenues from the 2% tax hikes. • Allowing bridges to be funded from the tax-hike revenues means in any year there could be much reduced, or NO, funding for street repairs from the reserve. The 2% annual tax hike could go almost entirely to bridges. City council should explain to Winnipeggers what is its plan to maintain city streets, in light of missed targets and the decision to fund bridges from the 2% tax revenues.

CHABOT ROCK SOLID SOLUTIONS

CELEBRATI

SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration CHABOT ROCK SOLID SOLUTIONS

CHABOT ROCK SOLID SOLUTIONS

CELEBRATING

204.224.1565 www.chabotenterprises.ca SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration • Site Remediation • Trucking and Heavy Equipment Rentals • Commercial Snow Removal • Site Preparation and Land Development • Site Remediation • Trucking and Heavy Equipment Rentals • Commercial Snow Removal • Site Preparation and Land Development CELEBRATING SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration

• Site Rem • Trucking • Commer • Site Prep Land Dev

SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration

• Site Remediation • Trucking and Heavy Equipment R • Commercial Snow Removal • Site Preparation and Land Development 204.224.1565 www.chabotenterprises.c • Site Remediation • Trucking and Heavy Equipment Rentals • Commercial Snow Removal • Site Preparation and Land Development

204.224.1565 www.chabotenterprises.ca

SERVICES • Sand and Gravel • Aggregate Crushing • Excavation and Earthwork • Road Construction • Flood Protection, Riverbank and Shoreline Restoration MHCA/Colin Corneau photo

Ellice Avenue - Bituminex Paving

• Site Remediation • Trucking and Heavy Equipment Rentals • Commercial Snow Removal • Site Preparation and Land Development