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Lazy Property Tax Hikers

Author: Colin Craig 2010/09/29

The average Manitoba family already gives over 40 per cent of its income to three levels of government, yet some want to increase that percent higher by increasing your property taxes. Talk about a lazy approach to governing. There is plenty of room for improvement at City Hall if anyone cared to roll up their sleeves.

To be sure, there’s no doubt our city has an infrastructure deficit. In fact, some of our streets are downright embarrassing.

And at some point, when the city improves how it currently spends the funds it receives, it could start a legitimate debate about how tax dollars are distributed among levels of government. But in the mean time, one has to remember - there’s only one taxpayer; and many are taxed out.

Consider what’s going on at the city right now.

City of Winnipeg-run pools and fitness centres run deficits of about $10 million each year, yet similar facilities run by the YMCA all break even or produce small surpluses. The fact city lifeguards receive wages that are approximately double what YMCA employees receive contributes to the annual losses.

Speaking of salaries, across the entire city government they’ve been skyrocketing – well above the rate of inflation. According to the city’s annual report, a one-year wage and benefit freeze would save the city $33.5 million per year going forward. If private sector employees have their wages frozen from time to time, why can’t city employees?

In terms of benefits, paying out firefighters for their unused sick time each year costs taxpayers $2 million annually. Yes, they can store up unused sick leave credits and eventually get paid out for a portion of them. The benefit is virtually unheard of in the private sector.

Consider how the city manages land it owns. The city has been sitting on 43.9 acres of prime riverfront property in West St. Paul for years.  The land is valued at about $1 million yet no one appears to be doing anything about selling it.

Over on Kenaston Blvd, prime commercial land is being used as a snow dumping site. Would you really see valuable commercial land being used as a snow dumping site in Toronto, Calgary or Ottawa? Selling it could probably fetch a million or two, plus annual property tax revenue once it’s developed.

And then there’s the rapid transit issue. The city claims it can’t pay for the infrastructure it maintains right now, yet it’s building a new half billion dollar rapid transit corridor; which will also require regular maintenance. Why not spend the money on improving traffic flow for all motorists, including buses? Anyone like to see a new underpass at confusion corner to improve traffic flow?

There are plenty of small expenditures that add up as well. Consider council’s own expenses.

One councillor expensed $739 for a satellite radio and subscription while another expensed over $8,500 for a pair of gigantic stimulus signs in his ward. Others had sky-high mileage expenses – at levels so high you’d think their wards were in Brandon.

Clearly, there are plenty of things the city could do to improve its operations. Simply hiking taxes is taking the lazy way out.

 

 


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