Thursday, February 09, 2006

Could the City of Winnipeg be debt free by 2017?

The City of Winnipeg has not borrowed money in years and in the most recent capital budget, debt payment cost was nearly doubled - all good news.
From the Winnipeg Free Press (subscribers only):

In 1995, when the tax-supported portion of the overall debt was $530 million, Winnipeg taxpayers were on the hook for $89 million worth of principal and interest payments, Steski said.

In 2005, when tax-supported debt declined to $264 million, principal and interest payments went down to $56 million.

In other words, Winnipeggers paid $33 million less in taxes to service debt last year than they did a decade earlier, which is enough money to pay for most of this year's road repairs, or all of Winnipeg Transit's new hybrid diesel-electric buses.

"We've cut the principal so much, we've been able to allocate those resources to other areas," beamed Adrienne Batra, spokeswoman for the Canadian Taxpayers Federation.

"Today's debts are tomorrow's taxes. We're happy this (mayoral) administration has maintained the principle of previous ones in their commitment to stop borrowing." The utility debt, meanwhile, has shrunk dramatically due to the 2002 sale of Winnipeg Hydro. Between 2001 and 2002, utility debt dropped by $232 million, with $166 million of that red ink wiped out by the hydro sale.


archie said...

Regina's debt sits at between 20 and 25 million......15 million for automated water meters.I was with a community association when this was announced. They will take 30 years to realize any savings. This is to get rid of 8 25,000.00 a year meter readers. Not too much thought went into this. Container garbage pickup is expensive but that didn't stop the city from going ahead with them. I was on a budget committee that looked at this years ago. We found the high cost wasn't worth it.The city went ahead with it any way. Once again the city is getting rid of a few garbage workers. Garbage workers and meter readers pay taxes but what the hell one less civil servant is worth it. Right??? All you people out there in blog land have jobs don't you?? Or are you all Entrepenuers ??? That's sounds like a nice way of saying between jobs.

silversage2000 said...

I think the Mayor of Winnipeg should be brought to a Court of Law, his friends in City Council voted to let him off the hook for over a quarter of a million dollars in property tax. Now he owes them bigtime , to be paid back by higher paid positions , this is corruption at the top level . He will repay them somehow , and that leads to more corruption. The Manitoba Government should step in and make him pay .

silversage2000 said...

Mayor Katz should be taken to Court for his friends being able to forgive his Quarter of a Million dollars in property taxes. This corruption at the top level. I had to pay an extra five hundred dollars two years ago on my house taxes , why should he be allowed to not pay his ???? Corruption like this at the top level , leads to more and more at the middle level. Send him to prison and confiscate his property .

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