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Sell, partner, charge
To offset city biz tax loss
By JOYANNE PURSAGA, SUN MEDIA



A new report asks the city to sell, partner and charge its way to $56 million.

Yesterday, the Economic Opportunity Commission released a few dozen key ideas to replace the amount, which represents about 7.6% of the city's operating revenue and will be removed with the elimination of the business tax.

Coun. Scott Fielding, who chairs the commission, said the approach offers more than enough options to compensate for the lost earnings within six years.

PARTNERSHIPS

Fielding said the tax removal is needed to ensure Winnipeg's economy keeps pace with the rest of Canada.


"Our business property taxes are among the highest in the country," he said Fielding at a downtown news conference.

"This will make our city more attractive for investment."

The plan suggests partnerships with private and non-profit groups to run city services and states that $165 million of its current expenditures could be provided externally.

For example, the commission proposes to reduce labour costs for non-emergency workers by $7 million, primarily by holding costs to inflation.

The report lists joining public libraries with those of nearby schools, coffee shops and others to save $2 million as another option.

And it suggests selling off city fitness facilities and golf courses to save about $6 million.

Fees for city services could be readjusted to fit a cost recovery model, with specific mentions of city permits, pet licences and a new user fee for snow dumping site maintenance.

Mayor Sam Katz said the report recognizes the city needs to become more efficient.

"I'm not going to stand here before you and tell you that the city is being run as efficiently as it should be. I'm not going to tell you that in my opinion, we're not flushing money down the toilet everyday," said Katz. "There's no doubt in my mind that we are. We can do a better job."

But Katz stressed the city is not looking to produce savings through layoffs or facility closures.

"For one, this commission met with all the unions and, two, any agreement the city is in, of course, gets honoured," said Katz. "So that is not the scenario."

The report also suggests a land inventory reduction, the sale of naming rights for facilities to corporations and offering flower bed ad space in spots like the Charleswood Bridge corridor to boost revenues.

The commission also urged that ambulance services and health inspections be shifted entirely to the province.

It also suggested the city ask the provincial government to streamline funding by converting all grants to a set portion of the PST.

The Mayor noted a PST-based grant would ensure stable funding and improve the city's ability to plan.

NEED MORE TIME

Katz cautioned the report presents a menu of options for the city to pick from, not guaranteeing any one will succeed.

The province said yesterday it will need more time to assess the report before weighing in on these options.

But a spokesman said Winnipeg already is well-funded and has access to growth revenues.

A MENU OF OPTIONS

A few of the key ideas to recoup revenue once earned by the business tax:

- Seek partnerships with private sector and non-profit groups to save on services, including animal services, bill collection and road construction.

- Hold labour costs to inflation and cut costs for non-emergency staff.

- Join city libraries with schools and increase volunteer contributions.

- Sell city-owned fitness centres and golf courses.

- Contract out animal services and enhance co-operation with the Winnipeg Humane Society.

- Sell off surplus land.

- Allow corporate sponsors for facilities like pools and the zoo.

- Set rates to recoup losses in permit and inspection service fees.

- Potentially increase the portioning rate for commercial properties once 90% of the business tax has been eliminated.

- Get out of snow dump site maintenance or introduce a user fee to recover costs.

- Streamline grants into a portion of the PST to ensure provincial revenue grows.

- Shift ambulance services and health inspection to be run entirely by the province.