Winnipeg council approves budget with largest property tax hike in decades after divisive debate
Operating budget passed 11-5, with dissenting councillors citing lack of transparency, consultation
Winnipeg city councillors approved the 2025 budget after a divisive debate.
The operating budget passed in an 11-5 vote, while the capital budget passed 10-6.
Couns. Sherri Rollins, Brian Mayes, John Orlikow, Cindy Gilroy and Russ Wyatt all voted against the operating budget, with Coun. Jason Schreyer joining them in voting against the capital budget.
It was the closest budget vote of Mayor Scott Gillingham's term in office.
The budget raises property taxes by 5.95 per cent, the highest increase since 1990.
Rollins had already announced her intention to vote against the budget. The Fort Rouge-East Fort Garry councillor, who resigned from her position as property and development chair last week, said the budget lacks crucial details, including a forthcoming report on water and sewer rates.
"Winnipeggers deserve the transparency. They deserve to know what's coming," she told reporters.
Gillingham said water and sewer rates are always dealt with separately from the budget, and the report will be released when it is ready. He also said Rollins was involved in budget meetings until she quit the executive policy committee last week.
"The first I heard of [this concern] was 48 hours ago, after she had stepped off of EPC, so I find it somewhat insincere," Gillingham said in a news conference before the budget vote.
Mayes (St. Vital), who also voted against the budget, said no one from the mayor's office reached out to him for input on his priorities.
"If no one reaches out to you and no one gets back to you, why would you then vote for the product?" Mayes said during the meeting.
"Because the people who pass it will then know they have no need to ever consult with you in the future."
Gillingham said councillors have already identified their key objectives through the city's strategic priorities plan, which all councillors compiled in early 2023. It lays out council priorities through to 2026.
One proposed budget change was defeated Wednesday.
Couns. Wyatt (Transcona) and Orlikow (River Heights-Fort Garry) moved a motion to raise the business tax rate by one percentage point, from 4.84 per cent to 5.84 per cent, but it failed to pass.
"We haven't, by and large, been keeping up with the inflation and fixed costs that any organization faces, including the City of Winnipeg, with regards to our operating costs," said Wyatt.
Gillingham slammed the proposal.
"For two veteran councillors to bring forward a motion today to increase business taxes by 20 per cent at a time when we are days away from potential tariffs and counter-tariffs that will affect our businesses is wildly irresponsible," the mayor said.
The draft 2025 budget, which was released in December, had already gone through some changes.
Public backlash pushed councillors to scrap a proposed pilot project to raise the threshold for snow plowing in the city. The proposed pilot would have seen the city wait for 15 centimetres of snow to fall on residential streets before plowing begins, instead of the current threshold of 10 centimetres.
And last week, the executive policy committee added $23 million to demolish the Arlington Bridge and begin designing a replacement this year.
The city faces the prospect of needing to find nearly $11 million in savings this year to cover a shortfall from last year, after draining its reserve fund.
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