Winnipeg homeowners will pay more in property taxes in 2014, with the hike part of the annual city budget tabled Friday.
The annual city budget includes a 2.95 per cent increase. The city said that's $45 more a year on a home worth $263,000.
Most of the revenue raised through the hike will go to fix crumbling streets.
“The goal is to build a budget where we can maintain our local streets and our regional streets at a level that's acceptable,” said Coun. Russ Wyatt, finance chair.
The budget aims to reduce some costs by trimming a total of 25 city positions.
All city staff, excluding essential services, will be asked to take three-and-a-half days off unpaid at Christmas next year, including councillors and the mayor.
“There could be members of CUPE that would like that time away with their family during the Christmas season,” said Mayor Sam Katz.
CUPE, the union representing city workers, worries that services will suffer during the holidays.
"Whether it's over Christmas or not, we operate 24 hours a day, seven days a week, and we need a workforce that can do that,” said Mike Davidson from CUPE.
Last year, councillors received a $40,000 hike in their ward allowances to spend on office staff and communication with the public. The new budget claws most of that back.
“I think you saw councillors using that money for other things which was not the purpose of those allowances,” said Katz.
Homeowner Greg Lajoie questions how a property tax hike can be justified, following millions of dollars of cost overruns with major city projects.
“17 million (over budget) on the police station and whatnot and stuff regarding fire stations doesn’t sit well,” he said.
Katz said the property tax hike does not have anything to do with the $17.2 million cost overrun for the new police station.
Katz said most of the tax hike is needed for roads and bridges, adding the city has borrowed most of the money needed to pay for the police station cost overrun at a low-interest rate.
Homeowner Yvonne Laberge is a senior citizen on a fixed income.
“Everything goes up but the income doesn’t go up,” she said.
Laberge said the tax increase is an added hardship for some.
“It would be hard for us to give another three per cent,” she said.
The city also hopes to raise an extra $3.5 million by increasing fees and permits, including some business licenses and several cemetery fees.
On the capital side, the city announced a plan to build three new YMCAs, worth $100 million, to be cost shared between the city, province and YMCA over 11 years.
The first one will be built in southwest Winnipeg between 2014 and 2016, followed by ones in the northeast and northwest parts of the city.
- with a report from Jeff Keele
