Premier Wab Kinew remained coy about whether he would support a new municipal tax in Winnipeg as the city struggles to maintain services.
Kinew dodged questions on the matter Friday afternoon.
“We want to see services strong, we want to see roads getting fixed,” Kinew said. “Affordability is really top of mind … we got to keep life affordable for the average person out there.”
MIKE DEAL / FREE PRESS
Premier Wab Kinew says he has ongoing dialogue with the mayor but didn’t commit to approving any requests, should they come to his office.
Some of the items being considered for a new tax are: alcohol, online deliveries, vehicle registration, vacant homes, commercial parking and land transfers with an exemption for first-time homebuyers.
A polling firm has been tasked with asking residents whether they would prefer to see the city get more money out of the province’s operating grants, cut some city services, raise property taxes by more than 3.5 per cent or introduce new municipal taxes. Results are expected in a week or two.
Any new municipal tax would require provincial approval.
Mayor Scott Gillingham said Friday the city has grown by 65,000 people in the last three years.
“We have not seen a corresponding revenue increase with the growth of 65,000 people,” Gillingham said. “The city needs more funding to meet the needs of the city service.”
Kinew says he has ongoing dialogue with the mayor but didn’t commit to approving any requests, should they come to his office.
The former Progressive Conservative government froze municipal operating grants for several years before boosting them by an average of 28 per cent in 2023. After winning last year’s election, the NDP committed to increasing the grants by two per cent per year.
Gillingham said he would welcome the idea of a new funding formula instead of implementing a new tax.
“But there’s also, I think the city needs to look clearly at the idea of, in part, raising some of its own revenue. So whether it’s a combination or one or the other, I’m open to both of those,” the mayor said.
Two Winnipeg city councillors are open to the idea for a new tax.
Coun. Evan Duncan said raising property taxes would cripple some residents who are already struggling with the cost of living.
“We need to be creative in how we’re going to generate revenue, and being creative is not going, ‘Hey, property owner or homeowner, it’s your turn. Yet again.’ That’s old. We need to think of new ways to generate revenue,” Duncan said.
This year the City of Brandon raised its property taxes by 9.4 per cent to address the city’s aging infrastructure.
Duncan (Charleswood-Tuxedo-Westwood) said a property tax hike would also affect the city’s reputation for being an affordable place to live.
Coun. Jeff Browaty said some financial risks the city took in the last few years to address inflation and pandemic-related costs have all come to roost and, without a stabilization fund, the city has to find a way to deal with the fiscal reality it is facing.
“I don’t want to pay more taxes, personally,” Browaty said. “I don’t want to pay more fees for the things that have been proposed. But the reality is, we just don’t have the revenue.
“People need quality roads. They want quality parks and playgrounds. They want their garbage to be picked up. They want the fire department to come when they call 911, these are all things that Winnipeggers count on and need. So it’s getting harder to make those ends meet right now and we’re looking at all opportunities”
Coun. Russ Wyatt criticized the plan and accused the mayor of floating new forms of taxation to help pay for the reopening of Portage Avenue and Main Street to pedestrians.
“He’s going to sneak through a whole bunch of other taxes to pay for his Portage and Main (project),” said Wyatt.
The province has yet to agree to an earlier request from the city for a $1-a-month fee on all phone bills in order to upgrade 911 services. The city had counted on the money for this year’s budget.
Kinew wouldn’t commit to the request Friday, only saying his government is focused on making life affordable for Manitobans.
— with files from Joyanne Pursaga and The Canadian Press
nicole.buffie@freepress.mb.ca
Nicole Buffie
Multimedia producer
Nicole Buffie is a multimedia producer who reports for the Free Press city desk. Born and bred in Winnipeg, Nicole graduated from Red River College’s Creative Communications program in 2020 and worked as a reporter throughout Manitoba before joining the Free Press newsroom in 2023. Read more about Nicole.
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