Stick to the deal, use street renewal reserve to fix roads: MHCA

The revenues Winnipeg raises each year with a 2% tax hike are intended to fix roads, and City Council should stick to the deal made with taxpayers almost a decade ago, MHCA President Chris Lorenc told a council committee yesterday.

Lorenc told the Executive Policy Committee members May 18 to stick with the renewal plan and hold to the original deal with ratepayers – dedicating the revenues of the 2% tax to road renewal.

“If the (budget for) transportation engineering improvement program is inadequate then fix it,” he said. “Don’t rob Peter to pay Paul because both suffer. Don’t further impair the ability of this city to fix our roads which as we all see this year are in deplorable condition.”

EPC was considering a motion tabled by Coun. Matt Allard, Chair of the Infrastructure Renewal and Public Works Committee. The motion was requesting that traffic engineering improvement projects be funded out of the local and regional street renewal budget, which draws directly from the reserve raised by the 2% annual tax.

In 2013 and 2014, City Council implemented the phased-in 2% tax, to dedicate a funding source for fixing roads. In recent years, councillors have asked to use the reserve for various purposes, including bridge repair, tree planting, recreation facilities and active transportation.

Each of these priorities are valid, and need council’s attention, Lorenc said. But each should have its own dedicated budget and funding source.

“The road renewal reserve was never designed as and cannot be the solution to all problems,” the MHCA submission to the EPC noted. “Attempts to fund all public works programs through a reserve designed for a single purpose will only leave each program poorer.”

The motion from IRPW was laid over. Because it was the second time a lay-over was requested, the deferral will need Council’s approval at its next meeting.

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