Winnipeg, MB – As the City of Winnipeg begins a slow and cautious multi-year recovery from the global pandemic, the Preliminary 2022 Balanced Budget Update puts a focus on the types of capital investments that will support growth. The proposed six-year $2.9 billion capital investment plan will help support population growth, economic growth, and jobs in times of fiscal uncertainty. This investment represents a critical piece of the multi-year Economic Response and Recovery Plan.
“As the world emerges from the global pandemic, it is vital for Winnipeg to invest in infrastructure that will grow our city for the future,” said Scott Gillingham, Chairperson of the Standing Policy Committee on Finance. “Our multi-billion-dollar capital investment plan will help create jobs and growth while bolstering our economy during an uncertain time.”
It is estimated that the proposed six-year $2.9 billion capital investment plan will boost GDP by $1.3 billion in Manitoba and $375 million across Canada, creating over 13,400 person-years of employment in Manitoba and Canada, while generating $341.7 million in tax revenue to provincial and federal governments.
The capital investment plan includes:
- $95.4 million for the Southwest sewer interceptor, an increase of $35.4 million from the six-year forecast last year. This project is directly needed to support growth in the southwest area of the city.
- A full one-third cost share of approximately $20 million towards the estimated total cost of approximately $60 million to provide water and sewer services for Phase 1 A of the Airport Area West Lands located within CentrePort. This would enable CentrePort to expand to more businesses and support the growth of Winnipeg’s robust transportation sector. It also addresses a key recommendation of the City’s COVID-19 Economic Response and Recovery Plan.
Other significant investments include:
- $510.2 million of tri-level government investments that support the Winnipeg Transit Master Plan which is proposed to be funded under the ICIP program;
- $240 million to accelerate the City’s investment in Combined Sewer Overflows, a $60 million increase from the six-year forecast last year;
- $27.3 million investments in fire stations in St. Boniface, Windsor Park, Waverley West, Silver heights, and a mobile modular station;
- $28.6 million investment in the protection and enhancement of our tree canopy; and,
- $24.3 for active transportation projects across Winnipeg.
The six-year capital investment program will be primarily financed through federal grants of $569.9 million including the additional top-up of the Canada Community-Building Fund of $43.9 million, provincial capital grants of $251.6 million, cash to capital of $86.5 million, revenue from frontage levies of $60 million, and external debt of approximately $291.4 million. The external debt of approximately $291.4 million for the new capital investment over the next six years is an increase of $74.2 million from the six-year forecast last year of $217.2 million last year; but still within the City’s self-imposed debt limits.
"Winnipeggers are paying more for groceries and gasoline with inflation rising to 4.5 percent,” said Gillingham. “In contrast, the Preliminary 2022 Balanced Budget Update limits the City’s total budget increase to 1.3 percent, keeping City services affordable and providing the City with a solid foundation to build from for years to come."