Winnipeg street renewal funding continues to 2027, future to be reviewed
The 2% tax for road renewal will continue to fund street construction projects to 2027, and a committee will work to discuss the future of tax hikes, revenue streams and the scope of the program, City Council’s Public Works Committee has decided.
A new funding model for street renewal was presented by the administration on June 26, where the Committee adopted the funding strategy recommended, but with amendments.
The recommended option – called Scenario 3 – would see the current 2% annual tax now applied to properties eventually reduced to 0.5% over the next 15 years, while the street renewal program itself would be expanded to include other work. In addition to funding road renewal and bridge repairs, the program would also cover tree planting, more sidewalk and alley construction, safety engineering and a build-out of active transportation routes.
The Committee, however, raised concerns about the financial forecasts, especially given a 3% inflation rate for construction used to calculate the growth in the need for revenue 15 years out. Further, it was noted that the scenario’s target for level of service would see 85% of regional roads and 75% of good roads in “good” condition.
Coun. Russ Wyatt said the strategy should seek a much higher level of service target, ultimately.
The Committee amended the administration’s recommendation, approving Scenario 3, but only up to and including 2027.
The councillors agreed to strike a group to review the concerns raised, and refine the strategy before approving a financing plan through to 2037.
“We agree that there needs to be an updated road renewal strategy, one that dedicates a predictable, sustainable stream of revenues to the local and regional street program,” MHCA President & CEO Chris Lorenc said.
“We, however, share the Public Works Committee’s concerns with regards to the financing plan’s reliance on a 3% construction-inflation rate – general inflation is just one factor that drives construction costs, as we’ve seen in the last two years,” Lorenc added.
The Public Works Committee’s recommendation will be discussed and voted on at Executive Policy Committee July 5.
The MHCA will speak to the motion at EPC.
