Infrastructure investment best way to recover from City’s economic slump
The City of Winnipeg’s economic response and recovery plan recognizes infrastructure investment as key to bringing the books back to balance, something MHCA is noting in its pre-budget discussions with councilors.
“Infrastructure investments allow the City to accomplish several policy goals: to stimulate the economy through the creation of construction jobs and the induced follow-on impacts. These projects can be focused to address under-served communities and/or vulnerable persons, enhance quality of life, and provide capacity to meet the demands of our growing population,” says a City report issued October 19.
“The local economic impact of infrastructure spending will depend on the value of the project, the type of the project, the portion of locally sourced labour and materials and the creating opportunities for future private sector investment and productivity gains,” it notes.
The MHCA is in the midst of pre-budget discussions with councilors, all of whom received the association’s submission for the preparation of the 2022 Operating and Capital Budget. The draft budget is expected to be presented late November or early December.
The association cautioned council against straying from the 4-year operating budget plan, and to give serious thought to the planning for the local and regional street renewal program, which will see decreases beginning in 2023 as the accelerated regional street agreement with the province and federal government comes to an end.
“We are happy to see that infrastructure investment is recognized as a sure way to stimulate the economy,” MHCA President Chris Lorenc said. “At a local level, it puts thousands of people to work immediately, which generates pay cheques that, in turn, are used in local businesses.”
Lorenc noted the MHCA is urging Council to call for renewed negotiations with the provincial government for new funding agreements to cost-share regional road renewal.
“We have always supported cost-shared funding agreements that recognize that both the provincial and federal governments have much greater ability, through taxation, to raise revenues than do municipalities. Funding agreements have to account for that, because municipalities own most of the infrastructure that is built and so carry the burden of maintaining it.”
The City report proposes a series of tools, including taxation changes, tax-supported measures and infrastructure investment, to assist Winnipeggers and to help City finances rebound from the economic impact of the pandemic. The City is forecasting a deficit in its 2021 general revenues of $16.6 million, and another 10.6 million hit to Transit’s finances. The report will be considered by City Council’s community committees and then to EPC November 17.
To see the MHCA’s pre-budget submission click here.
