Winnipeg property taxes to rise by at least 2.33%, Mayor Bowman says

Mayor Brian Bowman says Winnipeggers can expect to see an increase in property taxes of at least 2.33 per cent in the coming fiscal year, but that figure isn't set in stone it could rise even more bythe end of the day.

On Wednesdayafternoon, the city's executive policy committee (EPC) is expected to table the city'scapital and operating budgets.

Bowman said creating the city'sbudgets both last year and this year has been difficult.

"We have antiquated tools for revenue generation, so it has been absolutely a very difficult budget process," he said.

The lion's share of revenue from the 2.33 per cent property taxhike wouldbe used onroad repairs and maintenance, Bowman said. Specifically, one per cent would beearmarked for regional road projects, whileanother one per cent would go toward local roads. The remaining 0.33 per cent wouldbe invested in the development of Phase 2 of the city's rapid transit corridor.

• City report lays out plan for Phase 2 of Winnipeg rapid transit
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Winnipeg has a $7 billion infrastructure deficit to thank for the hike,Bowman said.

"Fourteenyears of neglect in terms of infrastructure investments is catching up with us," he said.

Finance chair Marty Morantzsaida property tax hike was inevitable.Winnipeg's infrastructure woes are what they are today, he said, due to a "long-standing policy of taxfreezes" dating back tothe late 1990s.

"If I had to point to one thing, that has really put the city 15 yearslater into a difficult financial position," he said.

Morantzadded thatWinnipeggers shouldn't judge the budget on the tax increase alone.

"If you just talk about one issue in a vacuum, it's not really fair to the entire process,"Morantzsaid."You need to evaluate a budget as an entirety, as a whole budget, as the major legislative document for the city on an annual basis."

Rates relatively unchanged since 1999: city

According to the city, Winnipeg's property tax rates haven't budged much in recent years,compared to other Canadian cities.

Rates wentup by6.7 per centbetween 1999 and 2015 in Winnipeg the lowest by far compared toVancouver, Calgary, Edmonton, Regina and Saskatoon, the city says.

For instance, property tax rates inEdmonton, Vancouver and Reginaincreased by 78 per cent, 57 per cent and 50 per cent, respectively, in the same time span, the city says.

EPCmeets Thursdayat 1:30 p.m.CBC News willupdatethis story after the budgets have been tabled.