Brandon budget proposes 10% tax increase in 2024

Residents in Manitoba's second-largest city could be hit with a 10 per cent tax increase this year. 

On Friday, the City of Brandon released its proposed budget for 2024, which would require an extra $5.3 million to fund.

For taxpayers in the city of 54,000, that would mean an average increase of 10 per cent on the municipal portion of their tax bills, according to a news release from the city.

Mayor Jeff Fawcett says he understands residents might be worried about the financial hit.

"I'm absolutely sympathetic. I'm one of those residents," he said in an interview.

But tax increases in the city have "been extraordinarily low for a long, long time," he said.

Past increases have often been below the rate of inflation, he said. In 2023, municipal taxes went up 1.6 per cent, while the inflation rate was 6.2 per cent.

Brandon city council will debate the proposed 2024 budget on Feb. 2 and 3.

Council members will have "aggressive discussions" with municipal officials to make sure any increases are necessary, and hopefully lower the proposed tax hike, Fawcett said.

"Nobody wants to get into government to say, 'Hey, we need to bring your taxes up.' We're going to have to justify why we would need to do this."

The city's total general and utility budgets are $137.8 million, while the capital budget is $125.1 million, including $35.9 million in federal and provincial grant funding, the city said in its Friday news release.

Aging infrastructure

Like cities across Canada, Brandon has aging infrastructure that is in need of repair or replacement, Fawcett said.

Some major projects planned for 2024 include water and sewer upgrades, such as a $24.7 million water treatment plant expansion, and $21.3 million for new wastewater sewers.

The capital budget also includes $13.3 million for land drainage improvements, and $10 million for the multi-year construction of a new outdoor sports field complex.

The city is also proposing $4.4 million for upgrades to the property and ice plant at the Brandon Community Sportsplex, along with $3.6 million for renewal of Brandon Transit and expansion of the Brandon Access Transit fleet.

There are also about 10 buses in the city's transit fleet that will need to be replaced over the coming years, Fawcett said.

"That adds up, and at some point you have to pay for these things," he said.

Salary expenses increased by $6.7 million, partially funded by other levels of government. That figure includes 15 paramedic positions fully funded by Shared Health, and 14 police positions, including two community cadets funded in part through the provincial urban policing grant.

Low taxes, not enough revenue

In December, a city-commissioned report by accounting MNP found Brandon is not bringing in enough revenue to cover its costs. The report noted Brandon's tax rate is 47 per cent lower than comparable cities in Canada. 

The report warned that significant tax increases could be necessary for years to come. It presented two options: a 13 per cent tax increase every year from 2024-27, followed by three per cent increases each year from 2028-33; or a tax hike of nine per cent per year for the next 10 years.

At the time of the report's release, city manager Ron Bowles called those increases a "worst-case scenario."

Fawcett said Friday that large increases may be needed for the next three to four years.

However, the projected future tax increases don't account for possible economic growth, which could increase revenue without the need to increase taxes, the mayor said.

He and other Manitoba municipal leaders will also continue to lobby other levels of government for increased funding.

"We're going to try to count on continuing to bring industry into the community.… But it will take a lot of effort on a lot of people's parts, and in a lot of collaborating with other levels of government," he said.