MHCA presses for street renewal budget working group
A working group should be set up quickly to look at a funding plan for the City of Winnipeg’s local and regional street renewal program, to present recommendations for sustainable, incremental budgets into the future, MHCA President & CEO Chris Lorenc says.
Lorenc said the forecasts for the street renewal program from 2024-2029 indicate concern for adequate investment in street repair work. The draft 2024 Operating and Capital Budget, which include the annual and five-year forecasts by department, was presented February 7.
The draft budget showed the local and regional street program will see a $17.6-million drop in investment this year, compared to 2023’s program budget. Cuts to investment in forecasts out to 2028 are not as steep, but total $18 million less against 2023’s forecasts.
Last year, during budget deliberations, the Public Works Committee decided a new funding model recommended by the department needed more work. The department’s model would see the 2% dedicated annual tax – originally implemented to feed street renewal budgets – reduced starting in 2029, and fall to 0.5% by 2034.
The Public Works Committee agreed to strike a working group to tackle the future-years funding question.
Lorenc said the 2024 budget shows that such a working group should start now, focusing on options for revenue sources.
“The revenues raised by the 2% annual tax hike are no longer dedicated just to street repair, they’re being used for a number of various priorities aligned with the program such as active transportation, sidewalks, lanes, traffic safety and restoring the tree canopy,” Lorenc said, noting he understands why the City needs to stretch its revenue dollars.
“But our streets need serious work. Budget cuts won’t get the necessary repairs done and they don’t allow for planning out the investments required for future transportation priorities.”
Coming out of the budget’s release yesterday, Lorenc said MHCA will be speaking with Mayor Scott Gillingham, Public Works Committee Chair Janice Lukes and other key individuals in the next days, as well as appearing in person to present the concerns when the budget is discussed at the Public Works, EPC and Council budget meetings.
The mayor, in his 2022 election campaign, committed to maintaining the 2% annual property tax hike – originally dedicated for road repairs – and to increasing frontage levies, in part to add $50 million over four years to road repairs. Those revenues were included in the 2023 budget’s forecasts for the street renewal program, which have been reduced this year.
The 2024 budget outline a $17.7-million increase to the pedestrian and cycling program, over the six-year plan, compared to 2023’s forecasts.
“What we are really seeing in this budget is clear evidence that the City is strapped for revenues, that municipalities don’t have the power and flexibility to raise sufficient revenues for the demands for service,” Lorenc said.
“We are happy to hear Mayor Gillingham is supportive of discussions about the need for a new fiscal deal with the province, so that Winnipeg can look to new sources of revenue generation.
Water main renewal budget in 2024 will be $20.5 million, up from last year’s forecast for this year ($19m). The six-year program is forecasted to be $135.2 million, compared to the 2023 budget’s six-year forecast of $120.7 million. Sewer renewal’s six-year program is forecasted at $144.2 million, compared to last year’s six-year forecast of $123.5 million.
