City short of funding for all infrastructure needs: Allard
Winnipeg can’t afford to fund all the major infrastructure projects on its to-do list, says Coun. Matt Allard, Chair of the Infrastructure Renewal and Public Works Committee.
It’s a matter of too many projects on the list vs. limited funding capacity, Allard said Tuesday, at regular committee meeting where the design for the Arlington Street bridge replacement was presented.
Allard said Winnipeggers are going to have to trim expectations or look at tax hikes.
“I think it’s time to have the conversation about what we can actually afford and what we should actually be spending the money on if we are going to be making these massive investments,” he said.
The new Arlington Bridge is estimated to come in at $300 million. The IRPW reviewed the design Tuesday. City Council will have to decide whether it is a priority among the long list of projects, including the extension of the Chief Peguis Trail ($400 million), the Louise Bridge ($220 million), Osborne St. underpass ($90 million) and the Route 90/Kenaston widening and reconstruction ($450 million). Those are among 15 major capital projects the city is looking at, either to maintain or to add to its infrastructure assets for the city’s growth needs.
The IRPW committee approved the preliminary design studies for Arlington and Chief Peguis.
“Even if all levels of government came to the table, if you look at the math, you can only really do one of these capital projects and then we’re out of gas,” he added, noting the City of Winnipeg is nearing its debt ceiling. “I’m not convinced we can afford any of them at the end of the day, not unless we’re willing to look at other revenue sources.”
The City has said the aging Arlington Bridge may have to be decommissioned at any time.
MHCA President Chris Lorenc said Allard’s concerns are warranted, but they are not a surprise.
Municipalities own 50% or more of public infrastructure, yet they are constrained in their ability to raise revenues – predominantly on the backs of property owners, right now.
Tri-governmental infrastructure funding agreements typically require each level of government to contribute equally, but municipalities collect only 8 cents of every tax dollar.
“It is not news that Winnipeg, all municipalities, are in a bind – we can’t continue to tap property owners for the large and increasing demand for revenues to ensure our cities and towns can maintain infrastructure, amid all demands for quality, necessary services,” Lorenc said.
Winnipeg’s infrastructure challenge will get more complicated should council proceed with its decision to fund bridges from the 2% annual tax revenues, raised specifically for street renewal, he noted.
The MHCA advocates for a new fiscal deal for municipalities, so Ottawa and the provinces assist in greater measure, but also to allow municipalities to tap new revenue sources. Constitutionally, they are creatures of provincial governments and need approval to expand municipal taxing authority.
Infrastructure funding agreements are not set in stone, and therefore are unreliable – hence the funding dispute over the Manitoba roads-funding agreement with Winnipeg, which has left the city $40 million short from 2018. Further, the province has refused to renew the five-year agreement. The combined impact means Winnipeg’s local and regional street program is out $174 million in its forecasts to 2024.
“We are going to advocate, in the coming provincial election campaign, for this critical new deal and for an overhaul to the way we now fund infrastructure, provincially and municipally,” noted Lorenc.
“This has to be a priority for Winnipeggers, for City Council and for all Manitobans. Our province and cities are growing, we have to be able to plan to meet that growth or our economy suffers.”
Read the story in the Winnipeg Free Press.
