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Operating inefficiency

Author: Adrienne Batra 2008/03/06
Most politicians can keep some people happy but it takes a real talent to make no one happy. Yet the release of Mayor Sam Katz's fourth operating budget for the city of Winnipeg has managed to do just that. Labour, business, arts groups, and social activists (on and off council) all had mostly negative views on the budget. As for many Winnipeggers, they seem ambivalent to whether anything will ever change at city hall - like we were promised.

On the surface, the budget doesn't look too bad. There were many cuts in various departments, reductions in staff, the usual increase for the core services of fire, paramedic and police. There was even a property tax freeze. But the Canadian Taxpayers Federation has delved further into the numbers, and a typical story has emerged. Like many other levels of government, the city has figured out the art of giving with one hand and taking with the other.

Take the property tax freeze, for example. While the mayor and his staff should be commended for bringing in the 11th consecutive freeze for the city, but, savings for ratepayers will mostly be eroded by the innumerable increases to various civic fees such a new $20 alarm permit renewal fee and increase in ambulance user fee.

Another big concern in the preliminary budget is the lack of any action on reducing the business tax, as per the mayor's written promise from four years ago. Further, hotel owners are being hit with a new 5 percent hotel tax with money earmarked for Destination Winnipeg and the Convention Centre. Cutting through the spin, the city is punishing private hotel owners with a new tax, then, turning around and giving those same proceeds to their competitor in the Convention Centre.

The mayor also chose not to implement a single proposal from the Economic Opportunities Commission which provided him and council with an entire report full of realistic recommendations on how to eliminate the job-killing business tax.

Shortcoming aside, the city did reduce spending in non-core service areas such as grants and arts funding. They cut $400,000 in discretionary spending, which includes a one-time $100,000 reduction in Public Art.

There is a lot more in this budget that is worth scrutinizing, and some things that were left out, such as how the city plans on saving $3 million by cutting some staff positions. No details were given on which positions or departments these reductions were coming from, the CTF will continue to push for that list. There area also some questions about new spending items including a $2.75 million reserve fund set aside for rapid transit - the very program Katz rightly eliminated when first elected; and $1 million for an Aboriginal Youth Strategy - when did it become city hall's (read: taxpayers of Winnipeg) responsibility to do a job other levels of government are already doing

There is time for your voice to be heard on this subject, call or e-mail your councilor, make a presentation and let your voice be heard. Log onto www.winnipeg.ca for all the details of the budget.





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Franco Terrazzano
Federal Director at
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Federation

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