In a struggle to get the books balanced, City Hall is looking to raise existing taxes, and it may even create a new one. CTV News has learned the city is working around the clock to prepare the 2008 operating budget. Due out Thursday Mar.6., the budget is expected to run close to $800 million dollars, including costs for emergency services, transit, community services, and city staff.
Cuts cancelled, freezes thawed
In order pay for those costs, Mayor Sam Katz told CTV's Kevin Armstrong that his promised business tax cut will be delayed this year. Katz has long stated that he wants to eliminate the business tax over six years, decreasing it 1.1 per cent each year.
Katz also said he is looking at creating a new tax for hotels. The Manitoba Hotel Association has already started collecting a voluntary two per cent levy for the city, but Katz wants to put another tax on hotel rooms to increase general revenue. He says it's a fair tax since the city puts out millions to bring in big events.
"We spend monies that bring people to our city," he said. "People stay at the hotels; the only sad party the city doesn't get a nickel out of it."
And with only one week before the budget is due, Katz won't confirm whether or not he will have to raise Winnipeggers' property tax. If he does, it will end an 11 year property tax freeze in the city.
He says the financial situation this year is not good and that's why budget staff are desperately searching for new sources of revenue. He also warns Winnipeggers not to expect a lot of new spending.
With a report from CTV's Kevin Armstrong
