Winnipeg roads budget sees $12-million injection in 2023
The City of Winnipeg local and regional road renewal budget for 2023 will get $12 million from the hike to the frontage levy, but in total the roads budget falls by almost $9 million compared to 2022.
This year, the total local and regional road renewal program will see $155.8 million invested by the city. Last year’s total road budget was $164.7 million.
While the roads budget falls against 2022’s level, it is $18.9 million more than was forecasted ($136.9 million) for this year in 2022.
The revenue added to the roads budget from the frontage levy hike this year buffered the steep drop that was coming for the regional road side of the program, due to the fact a $300-million agreement between the federal, provincial and city governments is coming to an end.
“We knew that there was going to be that challenge – the fall-off in funding for regional roads – because the five-year accelerated road renewal deal is ending,” MHCA President and CEO Chris Lorenc said Wednesday.
“We are glad to see new sources of funding for road renewal, and that mitigated what would have been a much larger problem. But Winnipeggers need better roads, and that means budgets have to keep pace.
“This underscores why we need a successor agreement for regional roads, with the province and federal government, but also really illustrates the need for a better deal for tax-revenue sharing generally for municipalities. They simply don’t have the ability to raise sufficient revenues for the services they provide.”
The total forecasted investment in the regional and local road renewal program for 2024-2028 is $821.6 million, according to the budget.
The budget, released publicly Wednesday, also sees $2.8 million going to begin the study and design of the potential expansion of the Chief Peguis Trail and Kenaston Boulevard.
The additional cash makes good on a campaign promise by new Mayor Scott Gillingham to invest in Winnipeg’s transportation system, with an eye to improving the movement of goods and people, and to boost the city’s economy.
Gillingham in his election campaign championed the need to improve trade corridors to see economic growth, and spoke about the ROI that is seen immediately and long-term in transportation network investment.
The budget also confirms, as expected, $60 million will go to servicing CentrePort Canada South with sewer and water pipes, the key to triggering development in that footprint of the inland port, which straddles Rosser and Winnipeg.
Last year’s city budget committed Winnipeg to putting in $20 million; last fall Premier Heather Stefanson said the province would commit $40 million, on faith the federal government would transfer to share half that commitment.
“This is a game-changer for development at CentrePort Canada and will return to the city and the capital region as a whole incredible value,” Lorenc said.
The city said the total six-year capital plan of $3.1 billion will be financed by grants from other levels of government of $700.7 million, reserves and frontage levies of $1.8 billion as well as external debt of $275.2 million.
In 2023, water main renewal budget will be $15 million; sewer renewal is $18.5 million. Water mains will see a total investment of $102.75 million 2024-28; sewer renewal will see $105 million in that period.
