Taxpayers Federation Presents 2007 Pre-Budget Brief to City Council

CTF Pre-budget Submission

WINNIPEG: The Canadian Taxpayers Federation (CTF) presented its recommendations on the 2007 Preliminary Operating Budget Estimates to the Winnipeg's City Council.

The CTF's pre-budget brief highlights a no-nonsense approach for fiscal restraint at city hall which would allow for property tax reductions as opposed to a freeze.

"We commend members of Executive Policy Committee for continuing the business tax cut for downtown in 2007 and proposing a two-point reduction for the rest of the city," stated Provincial Director Adrienne Batra. "The property tax burden needs to be addressed as the city will enjoy $14.2 million in property tax revenue in the next fiscal year - clearly, the impact of past property tax cuts have not had a devastating affect on revenues," added Batra. "The CTF is recommending a 2 percent reduction is in the best interest for Winnipeg to remain competitive."

The CTF presented these main recommendations:

• According to the recommendations put forward by the Economic Opportunities Commission, implement and adhere to a long-term strategy to eliminate the business tax.
• Keep public union salaries negotiations in line with increases in Average Weekly Earnings for a potential savings of nearly $21 million.
• To ensure Winnipeg's competitiveness, the CTF recommends a further 2 per cent reduction in property taxes. Tax reductions can be realized through administrative savings or a freeze on specific expenditures in non-priority areas.
• Commit gas tax and C-66 dollars in a long-term plan that focuses all of those monies on road repair
• Complete amalgamation of Winnipeg's Fire and Paramedic Services.
• The city continue to expand the Alternative Service Delivery Model and establish what the city's core services are.
• The CTF recommends when the City of Winnipeg enters into a P3 arrangement, a full disclosure clause in included in the contract to ensure transparency and accountability.
• Avoid overlap by getting out of activities that are the responsibility of other levels of government including arts funding, affordable housing and social services. This can be done in conjunction with the ASD committee establishing what core civic services are.
• Council should set measurable targets for staffing levels, road conditions and taxation levels until 2010. Cost cutting measures should be made permanent.
• Consider merging the city's assessment department with the province's or sub-contracting out assessment with the goal to improve services and save money
• Do not create any more Special Operating Agencies, in lieu of this, continue to expand the ASD model (see Rec. 6.)

Winnipeggers have consistently maintained their priorities are fixing crumbling infrastructure, cracking down on crime and value for civic services. The Canadian Taxpayers Federation (CTF) commends the mayor and members of the Executive Policy Committee for their thoughtful debate on the city's budget. "It has become increasingly important that residents of Winnipeg be afforded the opportunity to engage their councillors on the very important issues that affect their daily lives. The CTF is pleased with the new budget process which includes service-based budgeting, providing a clearer picture of where tax dollars are being spent," said Batra.

City Council has taken some steps in the right direction to ensure Winnipeg's future competitiveness: frozen property taxes, reduced business tax, streamlining bureaucracy, continued commitment to reducing debt servicing costs and no new borrowing for capital programs. All of these decisions have helped reduce the overall debt, and increase revenue.

"With the election of a new council, the City of Winnipeg has the opportunity to put the old, tired arguments of new taxing authority, new deals and growing the size of government aside in favor an actual strategy, built around smaller government and a clear sense of priorities," concluded Batra.