Winnipeg budget freezes business, property taxes; adds hotel tax

Winnipeg's preliminary 2008 operating budget holds the line on property and business taxes, but introduces a new five per cent hotel tax.

The budget, tabled by the city's executive policy committee Thursday morning, includes the city's 11th consecutive property tax freeze and holds business taxes steady.

The $767-million budget increases spending about $26 million over 2007's budget, more than half of the increase earmarked for police, fire and ambulance services.

The budget also provides more money for an aboriginal youth strategy and for rapid transit and eliminates the home-based business licence.

Job losses expected

But $3 million in "vacancy management" and job cutswill seemore than a dozen workerslose their jobs. Aleast11 of the job losses will affect workers represented by the Canadian Union of Public Employees, and some management positions will also be affected, officials said.The job cuts will affect several departments.

Winnipeggers will pay more than $7 million inhigher fees for services, fromtaking anambulance todropping their trash to the Brady Road landfill.

CentreVenture, the city's downtown development agency, had its funding cut by 60 per cent to $100,000, andthe city'sfunding for public art,previously approved in the city's capital budget at $500,000,has been slashedto $100,000.

St. Boniface Coun. Dan Vandal was not pleased to hear about those cuts, and some unpleasant surprises my still await, he said.

"There are about $8 million worth of operation efficiencies that are not defined," he said. "Ithink there's another $3 million over that in staff reductions that are not defined, and a whole bunch of revenues in fees and services that we don't know what they are right now."

On the revenue side, the city will get more money from new homes and businesses, and grants from other governments.

A five per cent hotel tax will fund the Winnipeg Convention Centre and Destination Winnipeg and create a "special events acquisition fund."

Funding formula must change: mayor

Mayor Sam Katzwarned that without significant change, tax increases in the future are unavoidable.

"I said we would look under every rock to maintain the service levels we have achieved," Katz said in a release. "Our current fiscal situation cannot be sustained future budgets must have a 'fair deal' from the province or we will face major tax increases."

Out of every dollar taken by all levels of government from taxpayers in Winnipeg, only eight cents makes its way to providing civic services, such as roads, bridges, libraries, urban forestry and riverbank protection, the mayor said in a letter prefacing the budget documents.

The budget unveiled Thursday will be reviewed by several committees at city hall over the next few weeks; revisions are expected before it's put to the full council for a vote on March 26.