2015 Budget

Message from the Mayor and Chair of Finance:

This preliminary operating and capital budget document sets out the action plan for the priorities expressed by the citizens of Winnipeg in last year’s election and from the budget consultation process that took place in 2014. We were faced with difficult choices in this budget process, but we believe this preliminary document provides a balanced and strategic approach to address significant challenges that are the direct result of total revenue streams that do not align with the total expenditures required to increase much needed City services and projects.

In the past, our City relied heavily on nonrecurring, one-time revenues to sustain 14 years of property tax cuts and freezes, contributing to a projected $73.4 million structural deficit to the city’s tax-supported budget in 2016. New, long-term growth revenue will be required to address this growing operational deficit. It is clear that we can no longer continue doing the same things in the same way. Strategic investment, innovation and transformation are required in order to address the future; this proposed budget offers several solutions going forward as we continue to fight for our Fair Share of the provincial PST and work with citizens to provide the top quality services and investments they deserve and expect.

Winnipeg is a fast-growing Canadian city requiring a committed focus on investment in the renewal of roads and, therefore, we propose a 22.7 per cent increase to our regional and local street renewal capital program to $103.3 million in 2015, an increase of $19.1 million from 2014. Through a commitment to a property tax increase to inflation at 2.3 per cent, (1 per cent dedicated to each of regional and local roads), the realignment of the Street Renewal Frontage Levy to construction inflation since its previous increase in 2011, $6.5 million incremental cash to capital from departmental efficiencies, and over $20 million in debt financing, Winnipeg’s infrastructure is being renewed at a rate to help keep pace with our growing, thriving, more modern city.

A growing road network also requires increased investment toward improved traffic flow. With the goal of optimizing and modernizing technological capabilities to manage traffic flow and the movement of people and goods efficiently throughout the City, including use of smartphone applications and social media, a new Transportation Management Centre (TMC) is planned to be operational by the end of 2016, funded $3.5 million annually in the operating budget and $3 million over 2 years in the capital budget. Ongoing financial challenges will not be met without new and innovative approaches to improved efficiency in the delivery of services the City provides to citizens every day. This budget includes a $1 million Innovation Capital Fund under the leadership of the Alternate Service Delivery Committee. The Alternate Service Delivery Committee will implement an initiative to review proposals recommended by the Public Service with a view to evaluating and funding innovative investments. The goal is to fund the best ideas for improved efficiency, service delivery, accountability and responsiveness in City operations. We want long-term results and positive outcomes for City services and are making investments to get there. As a modern city, we must continue our investment into modern public transportation options utilizing partnerships and balanced approaches to paying for a network city-wide. This budget also provides a sustainable, multi-year funding plan to ensure sufficient dollars are budgeted to service the City’s payments for the next stage of bus rapid transit. The funding model is a combination approach where, beginning in 2016, a tax increase of .33% each year for 10 years and a one-time 5 cent fare increase is set aside annually to ensure we have the required City funding stream at project completion. We are pleased to have our Provincial and Federal partners supporting this priority project for our city. To foster economic development and support the small business economic engine fuelling our economy, the city’s business tax rate is proposed to decrease from 5.7 to 5.6 per cent in 2015. This budget also enhances the small business tax credit program, proposed to provide a full rebate of business taxes for businesses with an annual rental value of $30,000 or less - up from $23,880 in 2014, impacting 6,025 - nearly half - of all Winnipeg businesses. New and ongoing strategic initiative investments proposed in this operating budget include projects and programs that help build our City’s growing pride: Aboriginal Youth Strategy funding at $1.75 million

Operating and capital support to the Assiniboine Park Conservancy (in 2015 a $11.376 million operating grant and $10.823 million in capital grants)

100% biological mosquito larviciding program beginning in 2015

5-year annual Grant of $150,000 to the United Way's Plan to End Homelessness

Increase in Winnipeg Arts Council funding over 2 years to $7 per capita

Reinstatement of Civic Museums funding in 2015

Funding for a downtown dog park in 2015 The capital budget invests in infrastructure priorities of $2.9 billion over the 6-year period - cash to capital investment in 2015 is almost $82 million, up by $6.5 million compared to $75.5 million in 2014. Strategic capital investments over the 6 year program are: Active transportation facilities - $27.9 million

Street and bridge projects - $816.7 million

A new Urban Forest Enhancement Program - $7.8 million

Public safety (Police and Fire Paramedic) investment - $110.2 million

Community Services including libraries - $95.2 million

Transit - $197.7 million

Waterworks System - $203.6 million

Sewage Disposal System - $1.2 billion, including the North End Water Pollution Control Nutrient Removal/Upgrade project and Biosolids initiative. Negotiations with the other levels of government must continue in order to successfully complete this capital program. We now invite all Citizens and Members of Council to continue the discussion to finalize this proposed 2015 budget and multi-year financial framework. Respectfully submitted, Brian Bowman,

Mayor Councillor Marty Morantz,

Chairperson, Standing Policy Committee on Finance

See the highlights of the 2015 Budget in this presentation:

Get involved!

Citizens are invited to participate in the 2015 Budget process. Please call 311, 24 hours a day, 7 days a week to register as a delegation for the following meetings, which are scheduled as part of the 2015 Budget approval process:

Friday, March 6, 2015

Winnipeg Police Board Meeting (regular meeting)

Monday, March 9, 2015

Standing Policy Committee on Protection and Community Services (regular meeting)

Tuesday, March 10, 2015

Standing Policy Committee on Property and Development (regular meeting)

Monday, March 16, 2015

Standing Policy Committee on Infrastructure Renewal and Public Works (rescheduled from March 13, 2015)

Tuesday, March 17, 2015

Special Executive Policy Committee to hear delegations on Budgets

Wednesday, March 18, 2015

Executive Policy Committee to consider Standing Policy Committee recommendations and table final recommendations (regular meeting)

Monday, March 23, 2015

Special Meeting of Council to pass Budgets