SATURDAY, APRIL 9, 2022 7
A SUPPLEMENT TO THE WINNIPEG FREE PRESS
fix the municipal funding model FIX our roads,
Potholes just scratch the surface
More alarming is the fact the revenues raised by the 2% tax have become the go-to solution for other pressing priorities on Council floor, such as parks and active transportation routes. In 2019, Council decided to use the local and regional streets renewal reserve to fund bridges – huge dollar signs here. City Council is strapped for revenues. As owners of 60% of the public core infrastructure, all municipalities shoulder the daunting responsibility of funding expensive maintenance and repairs, while drawing just 10 cents of every public tax dollar collected. It is understandable, then, that at budget time, this predictable source of revenue, raising $12.5 million a year, is eyed for other programs. But the reserve cannot possibly be the solution to every funding dilemma. It was not designed, nor structured to do anything but help make progress, over many years, on the repair and renewal of our regional roads and residential streets. Today, the goal for a sustainable, incremental funding plan for road renewal is getting more unlikely. The daily dodge-the-pothole frustrations this spring are symptoms of a growing asset management problem made worse because we’ve strayed from the original funding model. The infrastructure investment deficit – the difference between what we’re investing vs. what would be needed to properly repair and build new streets and roads over 10 years – sits at $1.9 billion. Winnipeg needs to update its funding model for streets, one that reflects the city’s development and able to support the economic growth opportunities to ensure Winnipeg is a world-class city capable of attracting new residents, investment and businesses. At the same time, Council needs to task the public service to draft a similar, disciplined financial plans to look after its bridges and to provide Winnipeggers with good walking and cycling facilities. A similar review and plan are needed to ensure our city parks and green spaces are world-class amenities. All of those service demands cannot ride on the back of a road renewal reserve even now struggling to serve its assigned purpose. The fact municipalities, including Winnipeg, struggle to fund core services to residents is a problem, and a direct fall-out of the inequitable, unrealistic and unfair sharing of tax revenues among the levels of government. That is where the solution must be found, in a new fiscal deal that recognizes the untenable position our cities and towns are in, rebalances the revenue distribution and allows a discussion on new revenue sources for municipalities. But, pending that, it would be a grave mistake to look for a quick fix, to rewrite the renewal reserve policy written in 2013 and 2014 and scale back its goal – to repair or construct residential streets and regional roads a growing, vibrant city needs and deserves. Our roads move people to jobs, school, recreation and they deliver supplies to businesses and our goods to market. Our economy literally rides on our roads, and they play a huge role in our quality of life. We deserve good streets.
Chris Lorenc is President of the Manitoba Heavy Construction Association and the Western Canada Roadbuilders and Heavy Construction Association
Chris Lorenc
Spring has sprung and so have potholes. Having battled near record snow fall and seemingly interminable cold, Winnipeggers are now battling craters on our commutes. It’s a tough ride out there, whether you’re on four wheels or two. This year may be more challenging, due to the impact of extreme cold on municipal infrastructure. But as Winnipeggers, it’s just a fact that our clay-based soil makes regular, responsive maintenance of streets and sidewalks a necessity. That reality was recognized and reflected in the City of Winnipeg’s streets renewal policy adopted almost a decade ago, setting out 20- year strategy to repair and keep roads in good condition. But a capital-asset management plan without a funding scheme is just an aspiration. So, the City wisely adopted a deliberate, detailed and sustainable financial strategy to support the repair and rebuilding of streets and roads. This is why Winnipeggers pay 2% more on property taxes every year, with revenues flowing to a dedicated reserve expressly for street renewal. Responsible, smart and effective asset management. Yet, even the best of plans can go astray without the required, and therefore anticipated, discipline to purpose. Original funding sources for the local and regional streets renewal reserve have fallen away and changes to the original strategy have messed with its critical elements. (For example, the annual 2% tax hike originally was to be largely replaced as the revenue source for road renewal by frontage fees in 2022, but City Council has diverted frontage fees to other purposes.)
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