Highlights of today’s Budget Update:

• decreases property taxes by 2%, for the third year in a row
• increases police budget by $5.1 million
• adds new staff to the police communications centre to address 911 service demands
• increases fire/paramedic budget by $3.5 million
• enhances firefighting capabilities with continued purchase of 7 new Quints (aerial ladder and pumper combination fire trucks)
• updates ambulance communications with purchase of the Medical Priority Dispatch system
• expands our successful 20% transit discount for post-secondary students
• contains transit increase to 5 cents effective January 1st, 2002 despite soaring gas prices
• freezes the business tax rate for the seventh time, at 1996 levels
• preserves service at our swimming pools, rinks, libraries and other recreation programs

A Winnipeg homeowner with a residence valued at $100,000 in 1999 will now be saving $90 annually because of the combined 6% tax break. Example:

1999: municipal tax = $1,506
2000: municipal tax = $1,476
2001: municipal tax = $1,446
2002: municipal tax = $1,416

“I am extremely proud to report today that this Council has achieved what no one else in Canada is doing,” said Mayor Glen Murray. “We promised a three year budget with predictable decreases totaling 6% and that is precisely what we have delivered. If our property tax rate had kept pace with inflation since 1999, as it has in most other cities, we would have $90 million more in property tax revenues. We have also absorbed a significant spike in fuel which is costing us $8 million more over the past two years. Our dedicated employees and Administration are now delivering among the most cost-effective civic services in the country.”

“Our plan to achieve more affordable government is bringing results, not only here at home but with major bond rating agencies,” said Councillor Bill Clement, Chair of Fiscal Issues. “Since 1999 Moody’s Investors Service of New York has raised our rating from A1 to Double A3 and singled out Winnipeg as having the most diversified economy in Canada. Standard and Poors has upgraded our economic outlook from negative to stable because of our fiscal prudence.”

How does Winnipeg compare?
Property Tax Increases in Other Western Cities:

 *Edmonton increased the 2001 mill rate by + 2.8 % with a one-time only rebate of 2.8%.

2002 Budget Update Process:

• Executive Policy Committee tables draft budget – Tuesday, Sept. 25, 2001, at 9 a.m., West Committee Room, Council Building.
• Standing Policy Committees review budget – October 1 to October 12th, (specific dates to be scheduled by Chairs.)
• Executive Policy Committee holds special meeting to hear delegations re: budget – Monday, October 15, 2001 at 9 a.m., West Committee Room.
• Executive Policy Committee holds special meeting to table final budget – Thursday, October 18, 2001 at 9 a.m. – West Committee Room.
• City Council holds special meeting to debate and vote on 2002 Operating Budget – Thursday, October 25th at 1 p.m. – Council Chamber.

Departments will continue their three-year planning cycle and in the months ahead a public Budget Consultation will be announced to assist Council in developing a framework for future budget decisions.

The Budget Update and information about process can be obtained at the City Clerk's Department, 311.