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Originally Posted by LilZebra
Rut? I thought we broke even or made a small surplus, and got a surplus in Transit (due to more than fair fare increases).
The only "ruts" we have are the physical kind, the ones that make up our daily commute on our non-maintained roadways.
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If you know of any financial modelling methods that can perfectly predict operating income 1 year out, then you should go work for the City immediately. The point being, having plus or minus $10 or $20 million in a consolidated annual budget excess of $1.5 billion isn't really that big of a deal. In the private sector, companies regularly fall below or above their expected earnings or expenses for the quarter, never mind the whole year, just listen in on an earnings call sometime.
And even so, in the grand scheme of things, I think you fail to understand just how expensive capital projects are, and how an extra million dollars here or there is virtually meaningless on that type of scale.
The truth about the city's finances is that annual capital budgets are about $370 million, the majority of which is devoted to local and regional street renewal and water treatment. Since the City is very close to it's debt ceiling and has been taking out very long-term debt (20 to 40 years in some cases), there isn't much room for the City to borrow to finance massive projects over the next several decades. Therefore major new projects not in the works will need to be financed with cash up front, and on projects like rapid transit that can be hundreds of millions of dollars, it is generally very difficult for the City to find that sort of money on an annual basis without finding a new avenue of revenue (i.e. increased property tax or some sort of new fee/tax).
Given that Winnipeg already has among the lowest municipal property tax out of all major Canadian cities, we honestly don't deserve a rapid transit system until the public's mindset changes. But right now, Winnipeggers seem to care about 3 things: keeping property tax low, filling potholes, and funding the Police, and the City has done a great job allocating money to those two initiatives given the constraint of having low tax, but it's come at the cost of everything else.