Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 21, 1998, Winnipeg, Manitoba Winnipeg free press monday september 21,1998 a9 Winnipeg climbs its debt Mountain City must ease its Reliance on property taxes manness by Kim Guttormson City Hall reporter the City s fiscal strategy of reducing spending replenishing reserves and eliminating external borrowing May be the strongest legacy this Council leaves for its next incarnation. Accounting s not the sexiest topic s around. Unless the Bottom line Means a property tax increase or closing a wading Pool or an unprecedented opening of the civic purse strings most pay Little attention. And is it any wonder this is a City that started out predicting a $14-Mil-lion deficit for 1997 and ended up with a $60-million surplus. Yet the Bottom line is the foundation on which everything else can be built. And some experts say that the City s path could Lead right out of the dark Tunnel it s been in the last few years. I think the City is in better financial shape than it was two years ago says Valerie Blair the director of Public sector rating for Standard and poor s. Blair is charged with evaluating the City s new credit rating. Standard and poor s downgraded the City two years ago and the new rating should be out in the next couple of weeks. They be taken quite a few Steps to regain financial Clayton manness the former provincial finance minister who headed a task Force looking at tax Reform in the City feels Winnipeg is heading in the right direction. But there s so far a distance to manness says the key is to simply spend less and move away from the Reliance on property taxes. In the 1998 budget 58 per cent of the $672 million is covered by property taxes. If you include All taxation despite the costs incurred while fighting last Spring s massive flood Winnipeg managed to Register a $60-million surplus in 1997 a financial feat City officials Don t want to repeat. That number jumps to 68 per cent. The next biggest contributor comes from provincial and Federal Grants. Almost 20 per cent of that Money was spent on debt and finance charges $132 million. And in 2002, that number will Rise to $154 million. The police department eats up 15 per cent of the budget at $102 million. Fire costs $65 million a year. Administrators Are looking at every service what it costs and How Many people it employs so the new Council can decide whether the City should provide those services. The City is planning to not borrow any More Money from outside sources after 2004. What that does is eliminate the debt charges by 2024, after they Peak at $154 million a year in 2002. And with four year terms being instituted Council can now plan two two year budgets which helps the planning process. A big stumbling Block Council faced was the $54 million it had to add to the tax Bill in 1996 to make up for the tax assessment fiasco. Reserves were wiped out. Then last year s blizzard and flood threw Winnipeg free press file photo where Winnipeg s Money goes million goes in the where.the$672 1998 budget departments police. Parks and recreation fire \ social services streets transportation libraries corporate services refuse collection land and development Community services corporate finance $102.6 million $69.5 million $64.8 million $61.3 million $52.8 million $20.2 million $18.9 million $1-6. Million $13.7 million $13 million $10 million $10 million $8.5 million $8.3 million $2 million $132,1 million $25.6 million $20.9 million another wrench into the plans. Yet at the end of the year the City stood $60 million to the Good a feat City administrators say they Don t want to repeat since it s difficult to justify to taxpayers Why they re paying High taxes that Aren t being spent on essential services. Some of the $60 assessment other Hydro Street lighting Cag secretariat corporate debt finance charges contribution to transit other corporate costs tax insurance damage claims $9.9 million Grants payments to other. Authorities $9.8 million contribution to ambulance $2 million million was put Back into the reserves the rest simply was t taken from the utilities Hydro and water and waste As had been threatened. However rebuilding stabilization reserves is Back on track. Mayoral candidate Peter Kaufmann thinks the City s fiscal policy is right City s financial priority list the goals of the City s financial management plan not necessarily in this order a reduce expenditures a reduce debt a a rebuild reserves a renew infrastructure a reduce property tax Reliance a develop contingency plan since the City receives 25 per cent of its funding from other Levels of government a reduce unfunded liabilities a remove education support Levy a Combine existing Utility charges on the Money but he wants to pay off the debt quicker. And he wants to Stop Selling Large pieces of land and simply putting the Money Back into the operating budget. He says spending asset Money that Way is like Selling your House to buy groceries. The other front runner for mayor coun. Glen Murray also agrees with building up reserves and reducing borrowing and expenditures. But he d like to see the number of reserves decreased with guidelines that says funds can Only be used for the designated purpose. There Are too Many funds too easily raided he said. In essence we have to pay As we go. And go harder and faster than we Are right now of the new Council maintains its course., the Only financial item to cause heated debate May be Winnipeg Hydro. To sell or not to sell and the question in t As Black and White As it looks City staff say Selling parts of its May be a better idea. A consultant s draft report now being looked at by an administration team won t have their take on it ready until after the election. Reserves explained a he City s seven stabilization Reserve funds a equipment replacement builds up funds to cover the Cost of any equipment such As Snow lows or garbage trucks that need to be replaced. Money comes irom an annual amount set aside for replacement investment income and any proceeds from Selling used equipment. 1996 $9.9 million 1997 $13 million target under review a fiscal stabilization receives the Money from taxes paid after March from new houses being built Etc 1996 $3.7 million 1997 $3.7 million target five per cent of general Revenue or $33.7 million a transit bus replacement builds up funds to cover the. Cost of replacing or refurbishing transit comes from the transit department and any proceeds from Selling bus equipment or from bus insurance claims. 1996 $3.7 Phillion 1997 $5.7 million target under review a retirement allowance Aims to cover the liability of employee s retiring and claiming unused sick leave credits. Money comes from the general Revenue fund and the Utility funds. 1996 $1.3 million 1997 $1.7 million target $18 million a Snow Clearing puts aside Money for the next season of blizzards with Money saved from less snowy years. 1996 $1.2 million 1997 $1.2 million target $5 million a commitment established 1998 allows departments to carry Forward commit Teil budget dollars to the following year but it must be Spei to that next year unless approved by the director of corporate finance. 1997 1 million a Mill rate stabilization established 1997 this will help stabilize the City s Mill rate and or property tax requirements. Money comes from any surplus in the general Revenue fund. 1997 2.9 million target five per cent of general Revenue fund expenses or $33,8 million. Wrap it up Early fall special no get on  siding  insulation  windows & doors e estimates skill Craft Home renovations 632-8803/255-8652 effective september 15-30. Not valid with any other special offer. Windfall of savings windows & doors 00 while quantities last 956-4075 . 8 30-5 00 Sal. 10 00-3 00 289 King St. King a Good Deal better this week s features 1 1995 Taurus go Wagon 1997 Mark Viii 1 1998 expedition Alt fully loaded p. Windows p. Locks Ford extended 1 or. Warranty or 20,000 Ems. 13,877 fully loaded leather p. Windows p. Locks cd 4.6 32 valve v8, red in color 45,100 Ems. 38,997 rear heat rear air leather 3rd Row seat Power windows p. Locks p. Drivers seat 17" first Ify loaded 38,927 1997 Lincoln town car exec. Series leather 29,156 $33,997 b 1997 Lincoln town car Sig. Series Power roof 27,410 $37,485 1995 Lincoln town car signature series leather Interior 75,796 $27,470 1995 Lincoln town car Sig. Series Power roof 52,679 $28,580 1994 Lincoln town car exec. Series 82,826 $19,979 1998 win Star go 3.8 v6, rear heat & air Quad buckets. Only 15,000 kirn. $23,997 1996 Lincoln Continental front wheel drive 4.61 32 valve v8, Aab 4a a ii full loaded a leather p. Windows & Yob 007 locks Power seats 79,000 Ems pm mtg w a 1994 Lincoln Mark Viii leather cell phone 91,467 24,997 1997 Lincoln Continental leather 21,969 36,670 _ a 1996 Lincoln Continental rtt a fully loaded Diamond anniversary 11 in Power roof cell phone cd a 40,000 ____ 1998 Mercury mystique at air tilt cruise cass., v6 engine lease for $299/mo. $17,995 1998 Ford escort zx2 at air. Power mirrors am m it hism am pm stereo sport wheels 9 1 a do k tease for $252/mo._1 tf77�# 1998 Mercury mystique at Auto 4 cyl., Power locks cruise tilt p. Windows $16,995 1997 Sable is 4 door Doc v6 engine High output buckets with a Mem console. Only 18,000 Ems fully loaded %a7 1 owner vehicle Jim Evv 1994 grand Marquis is 4 door p. Windows p. Locks p. Sea s Only 80,000 . $14,965 1996 Ranger Al 4 cyl., 5 spa. Only 19,523tcm. Lease for $251/mo. $11,995 1997 Ford Aerostat ext. Wafi v6, at air tilt cruise Cass pm pal Aux air lease for $331 $19,595 1994 jeep Cherokee 4 door Ltd full leather p. Windows p. Locks p. Seats $18,997 1993 explorer 4x4 Alt v6, automatic p. Windows p. Locks am pm sports $14,495 29.950 1998 Taurus wan. Fully loaded pm pal p. Sear rear wiper Washer. Only 29,000 Kim. $ 18,995 Quality certified used 100 it. Inspection 24 hour Roadside -1 year extended factory warranty 3 Day 500 pm Money Back guarantee. $2000 Down on All used leases. Sale ends sept. 30/98_ what a Dealership should be. Uni Mercury sales limited 555 Empress St.  772-241 i ;