2016 Preliminary Budget – Update #4 (Revenue Sources)

PROVINCIAL SALES TAX – FAIR SHARE AND FAIR SAY

Across the Province of Manitoba, local councils in every city and town are responsible to pay for 60% of infrastructure costs.  YET, local councils receive just 8 cents of each PST Dollar (Provincial Sales Tax dollar) to get the job done.  Consequently, local councils must then look to their own revenue base – taxpayers – to find the substantial difference in funds which are needed to repair failing infrastructure.  Here’s the facts:

• 61% of Manitoba’s population lives in the City of Winnipeg  (Stats Canada/City of Winnipeg)
• 30% of streets, highways, bridges, sports and recreation centres and water pipes are rusting, corroding and falling apart (Federation of Canadian Municipalities)

The City of Winnipeg is almost 150 years old and our infrastructure deficit is estimated at $7.4+ billion.  These funds are needed to upgrade our sewer and water systems, the roads/bridges network, buildings, and transit requirements. For details, SEE Council Report

Clearly, it is evident that 8% of every PST dollar does NOT adequately support the City’s infrastructure deficit.  It’s very important to understand that if the City wanted to establish an alternate revenue source such as a fee on new developments, it must FIRST obtain permission and approval from the Provincial Government.

Over the years, Mayors and Councils have asked the Province for a ‘new deal’ in sharing the PST and continue to do so today.  With the provincial election coming up on April 19, I encourage you to ask the local Provincial candidates who come to your door to support a ‘new deal’ with local Councils and support a fair sharing of PST revenues.

For more details, the Association of Manitoba Municipalities (AMM) has information on the effort to have a Fair Share and Fair Say in how Provincial tax dollars are spent:  SEE HERE and at www.amm.mb.ca   I strongly believe we are working with an antiquated revenue generating system and must work towards a fair share.

TAXES PAID BY WINNIPEGERS & AMOUNT RETAINED BY CITY

We all pay City, Provincial (PST) and Federal (GST) taxes. The chart below illustrates how Winnipeggers’ taxes are allocated. Again, I strongly believe we should be receiving a fair share from the Province of Manitoba.

 (Source: Revenue Canada Agency and annual financial reports of the governments of Canada, Manitoba and Winnipeg, August 2014)

CITY OF WINNIPEG – BREAKDOWN OF TAXES

The chart below provides a breakdown of municipal taxes over six years.  Funding from property taxes, frontage levy and water dividend have all been utilized to balance the City budget.  While there are many opinions on where these revenues are drawn from – CLEARLY– there is only one taxpayer. We live in a City that has many infrastructure needs and multiple priorities.

Again, I encourage you to ask the local Provincial candidates who come to your door to support a ‘new deal’ – a ‘fair share of the PST’ with local Councils.  Council  is NOT asking for an increase in the PST rate.  Rather, Council is asking for a fair share of what is currently being paid by taxpayers. 

Balancing a budget to needs, wants, and affordability in a progressive, growing city requires difficult decisions.  I have prepared this Budget Update for purposes of greater transparency, and to enhance communication with residents.  Your input is appreciated.   I represent YOU at City Hall, so please tell me what you think: Contact me.

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