Taxpayers Federation Presents 2006 Pre-Budget Brief to City Council

CTF's submission

WINNIPEG: The Canadian Taxpayers Federation (CTF) today presented its recommendations on the 2006 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 continuing the business tax cut for downtown in 2006, but still question the lack of a detailed plan to eliminate the anti-growth tax for the rest of the city," stated Provincial Director Adrienne Batra. "Property taxes remain frozen this year, however the CTF is recommending a 2 percent reduction is in the best interest for Winnipeg to remain competitive," added Batra.

The CTF presented these main recommendations:

• Provide a comprehensive, cost-out plan for the elimination of the business tax;
• Keep public union salaries negotiations in line with the Average Weekly Earnings for a potential savings of nearly $21 million;
• Eliminate employee bonus payout at City Hall;
• To ensure Winnipeg's competitiveness the CTF recommends a 2 percent reduction in property taxes to augment tax cuts given in previous years.
• Commit gas tax and C-66 dollars in a long term plan that focuses all of those monies on road repair
• Complete the amalgamation of Winnipeg's Fire and Paramedic Services.
• The City continue to expand the Alternative Service Delivery Model.
• Identify what the core services of the City of Winnipeg are without overlapping what other levels of government are already doing.
• 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.
• Council should set measurable targets for staffing levels, road conditions and taxation levels until 2010.
• Consider merging the city's assessment department with the province's or sub-contracting out assessment.
• Do not create any more Special Operating Agencies, in lieu of this continue to expand the ASD model (see Rec. 7.)

The CTF acknowledges the progress that has been made by the mayor and Council in the past fiscal year, but there is much more to accomplish. The 2006 budget presents its own unique challenges and opportunities. "By targeting spending, identifying what the core services of the civic government are, tax reduction and expanding the ASD model, the CTF believes Winnipeg will become more competitive and an attractive place to keep our youth and grow private investment," concluded Batra.