Taxpayers Federation to Present 2004 Pre-Budget Brief to EPC

Winnipeg Pre-budget Submission (124 KB)

WINNIPEG: The Canadian Taxpayers Federation today presents its recommendations on the 2004-06 Budget Estimates to the City of Winnipeg's Executive Policy Committee.

The CTF's pre-budget brief highlights the positive impact of past property tax relief and spending restraint but raises a red flag on the city's eagerness for spending in non-priority areas and unwillingness for future tax cuts.

"The draft budget shows that with the small reductions in property taxes over the past few years, the city's revenues have not been affected, " said Adrienne Batra, CTF Manitoba director. "The CTF has consistently maintained the principle that tax cuts are not another spending item. Tax cuts stimulate growth in the economy, and with Winnipeg's red-hot real estate market, the assessment base is growing," added Batra.

The CTF will present these main recommendations to EPC:

• The CTF recommends City Council work with the provincial government and demand 50 per cent of the gas tax revenue collected by the federal government under the guidelines set out in the CTF's Municipal Roadway Trust;
• To ensure Winnipeg's competitiveness the CTF recommends a 2 per cent reduction in property taxes to augment tax cuts given in 2001 and 2002. Tax reductions can be realized through administrative savings or a freeze on specific expenditures in non-priority areas;
• Phase out the 9.75 per cent business tax over a four-year period (beginning with a 2 point reduction in 2004) so that continued growth in business tax revenues off-sets the staggered tax reductions;
• To continue financing high priority spending areas such as debt servicing costs, fire and police services the CTF recommends the city reduce spending in low priority budget envelopes to a comparable extent; and
• City Council adopt a user fee option for waste collection as a substitute for the inequality built into the current property tax model and reduce property taxes by 4 per cent in 2005.

The hard line adopted by City Hall towards borrowing for capital expenditures should be equally applied to expenditures in the tax-supported portion of the budget. "The CTF believes that progress has been made on the tax front in Winnipeg and acknowledges City Hall's commitment to competitive property and business taxes, but more can be done," concluded Batra.