City needs new funding model with province: MHCA
The recent provincial announcement of increased grants to municipalities is a good step, but should be followed by a new, expanded funding model agreement with Broadway to adequately finance services in demand, MHCA President and CEO Chris Lorenc says.
Lorenc pressed for the new fiscal deal between the levels of government in his budget submission to Winnipeg’s City Council Executive Policy Committee March 16.
In the submission, Lorenc called upon councillors to push for sustained, incremental increases to the local and regional street budgets.
Even though Winnipeg’s 2023 budget increases funding for local and regional street renewal against earlier forecasts, the program will see $8.9 million less compared to 2022. Further, the regional street program will see budget reductions after 2023.
Part of the reason for the declining funding is the fact a tri-governmental funding agreement for accelerated renewal of regional streets ends this year.
Lorenc stressed that not only does Winnipeg need a successor agreement for regional streets, but it and all municipalities need new and improved sources of revenues.
While municipalities own more than 50% of public infrastructure, they collect only 10 cents of every tax dollar.
“The recent announcement by Manitoba to increase base grants to all municipalities was welcome news but only a first step of a necessary new funding-model discussion,” Lorenc said. “The announcement effectively acknowledges the constrained abilities of municipalities to meet service demands with their limited resources.
He added 2023 is a provincial election year and that gives the city good opportunity to “seize the moment and press all provincial party leaders to publicly commit to voters, to negotiating a new funding model.
“That new model should serve as a platform to generate additional and new revenues to provide world-class services and cultural amenities necessary to keep our growing cities and towns competitive nationally and globally.”
He applauded a number of elements of the city’s budget that will help to grow the economy, including the decision to move ahead with design studies for extending Chief Peguis Trail and expanding Kenaston Boulevard – both important trade corridors.
As well, the investment by the city of $20 million – and another $40 million from the province – to extend water and waste-water services to CentrePort Canada’s south lands unlocks real potential for development there, and this holds dividends for Winnipeg and Manitoba.
Lorenc capped his presentation with five recommendations that will aid in fiscal decisions aimed at economic growth; they are:
- Focus on growing the economy.
We recommend the Office of Economic Development & Growth be elevated to a level equivalent to the CFO and COO, reporting to the CAO; and that a standing committee of Council be tasked to oversee the development and implementation of an explicit economic growth strategy.
- Transportation Master Plan.
Ensure that the final transportation master plan embraces the connection between investment in transportation and economic growth; its connection to growing the assessment base and expanded revenues to Winnipeg with which to fund its service priorities. - Press for successor funding agreements with senior levels of government.
Press the provincial government to enter into a ‘new funding model’ with municipalities; press Manitoba and Ottawa to negotiate a successor plan to the accelerated regional road program. - Develop a detailed strategic transportation infrastructure plan.
Task a stakeholder group, resourced by the Office of Economic Development & Growth, to recommend a detailed Strategic Transportation Infrastructure Plan addressing targeted, strategic goals, including mode shift, induced demand and inverted mobility considerations (gives priority to pedestrian, then to bicycles followed by public transit)
- Update full transportation system condition, needs and sustainable funding model.
Request Public Works to provide an updated assessment of the condition and needs of local and regional streets, AT and dedicated bus lanes, and bridges and structures. The updated Local and Regional Streets & AT Renewal Program must continue to be funded by dedicated revenues. Bridges/structures renewal requires its own dedicated revenues and investment strategy.
