Quote:
Originally Posted by Hecate
So if what you say is true about increasing tax base, why are our roads shittier than they’ve ever been.
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The "tax base" has increased, but the rate at which it has been taxed has only kept up with regular old CPI inflation. Construction costs (i.e., infrastructure costs) increase at a rate more than inflation. And so does the cost of Police and Fire thanks to their strong unions.
According to audited financial statements, in 1998 Winnipeg brought in $384 million in property taxes across 628,400 citizens, which equates to $610 in taxes per person. In 2021, Winnipeg brought in $650 million in property taxes across 772,935 citizens which equates to $840 per person. So a net increase of $230 in per capita taxes over 23 years. Not bad, right?
Well CPI over the same time period showed a 54% increase in prices. So when we adjust the 1998 value for inflation to bring it to 2021 dollars, we get per-capita taxation of $942 in 1998, versus $840 per-capita in 2021, which is a decrease of $102 per person in real dollar terms.
So yeah, the tax base has grown thanks to population and employment growth, but our elected officials have actively chosen to reduce taxes in real terms, resulting in less tax dollars to spend on a per-capita basis.
Yes, it is true other sources of revenue have risen faster. Namely government grants to the city and utility fees. But the City doesn't control how much grants it gets, and utility fees are more-or-less locked in to use for utility projects like the North End treatment plant and combined sewer replacement.
So it's no wonder community centres are falling apart and transportation solutions involve adding more red lights to already slow-moving road networks.
As for roads - and I know this isn't the road forum - we spend RECORD amounts on roads today. Like $130 million, per year, to fill potholes and repave roads and rebuild old roads. In the early 2000s, this value was closer to $30 million. The problem is perception. We have MANY MANY sections of rebuilt and repaired roads in good condition across the City, but all it takes is one or two bad potholes in a city with a brutal freeze-thaw cycle on a road that has yet to be fixed, and citizens will say all our roads are in the worst condition ever. It's a never ending battle versus the weather and budget constraints that we will never win. Construction industry capacity is also an issue. We can't just increase the pothole budget to $200 million and fix more roads, we are likely very close to capacity in terms of labour and capital in the local construction industry already, so we are fixing as much roads as physically possible right now.
So basically, taxes haven't kept up with inflation and growth, and what tax reserves have grown are dedicated to filling potholes not actually adding new assets or improving traffic flow.