Quote:
Originally Posted by optimusREIM
How do other cities get stuff done? What makes us so unique that we aren't able to fund projects to the point that our infrastructure for transit and regular automobiles is behind that of most cities our size? Again, there's a need for all modes, gotta start getting things done to an acceptable level.
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People don't want to hear it, but the reason we "don't get as much stuff done" compared to other cities is simple: we don't tax enough at the municipal level in two ways:
1) Property taxes: As a whole, Winnipeggers spend ~1.8% of their after-tax income to property taxes. The average across other large cities in Canada is 2.1%. If we increased our property taxes such that we taxed closer to the Canadian average as a share of after-tax income the City would have an additional ~$100 million in property tax revenue every single year. To put things in perspective, our road renewal budget is around $160 million per year and our community services budget is around $120 million per year. Think of how many operating and capital improvements we could accomplish if those budgets were nearly doubled.
2) Development charges: Every major city in Canada (aside from Winnipeg) and almost every major municipality in Manitoba surrounding Winnipeg has development charges for new development. This allows municipalities to collect revenue from new housing and businesses to help offset the infrastructure costs associated with accommodating that growth. Winnipeg doesn't have that option because the impact fee in its previous form was struck down in court, and while the court did confirm the city has the authority to implement a properly calculated fee, there is currently no political will to do so. The result is that Winnipeg has seen rapid growth and has to fund infrastructure to accommodate said growth, but gets little revenue in return to offset the cost. So with limited budgets, new infrastructure in growing neighborhoods has to be funded by service cuts or forgone capital investment in existing neighborhoods.
Nobody wants to hear this, but these two facts make it clear why Winnipeg has such an acute infrastructure deficit and has difficultly maintaining what it has, nevermind adding new assets. Don't get me wrong, every Canadian city is feeling the strain on their aging infrastructure and no one (except for maybe Calgary) feels as though they have "enough money" to meet the needs of the public, but in Winnipeg, politicians have kept property taxes low and development charges non-existent to appease the voter base in exchange for aging and crumbling infrastructure - a foolish tradeoff that is coming back to bite them.