Winnipeg City Hall is gauging the public’s appetite for possible new taxes on alcohol, online deliveries, vehicle registrations and other items.

Faced with a continued funding squeeze, the city says it needs either more money from the province or new sources of revenue if it wants to maintain its services.

“It’s no secret that Winnipeg, like every other city across the country, is struggling with financial challenges,” Mayor Scott Gillingham said in an interview Thursday.

“The City of Winnipeg needs more revenue. I have always been open and clear about this. We have a growing city with growing demands and we need to be able to fund these services.”

The city, through a polling company, is asking residents if they would prefer Winnipeg to receive more money from the province, cut services, increase property taxes by more than 3.5 per cent or impose new municipal taxes. The latter option would require approval from the Manitoba government.

Alcohol taxes, online deliveries

Among the items proposed for a possible new council tax are alcohol, vehicle registration, items ordered online for delivery, vacant homes, commercial parking and land transfers with an exemption for first home buyers .

“We’re looking at various revenue options and trying to get a sense of what the public would think,” Gillingham said.

“We need an increase in revenue. So whether it’s through an increase in provincial grants to the City of Winnipeg, whether it’s through the city increasing its own-source revenue or a combination of the two, I’m open to anything what might result.”

Minnesota recently introduced a flat 50-cent fee on many deliveries of items ordered online, although there are exceptions that include transactions under $100 and restaurant meals, the state’s website says. State.

The former Progressive Conservative government froze municipal operating subsidies for several years before increasing them by an average of 28 percent in 2023. The NDP government, after winning last year’s election, is committed to annual increases of 2 percent.

Province ready to examine new funding models, says mayor

Civic leaders say that still isn’t enough. The Association of Manitoba Municipalities has called for an automatic funding indexing mechanism that would increase grants based on rising costs.

“We are currently facing increasing challenges in balancing our budgets,” said Kathy Valentino, interim president of the association.

“With … inflation and everything costing more, it’s costing municipalities more to provide the services that we need to provide to our taxpayers.”

Any new municipal tax would require provincial approval, and some previous requests – including a request for an alcohol tax in Thompson in 2007 – have been rejected.

The province did not indicate Thursday whether it was prepared to consider new municipal taxes.

“We have brought new stability and predictability to municipalities across the province with our increase in the 2024 budget,” reads a written statement from the office of Ian Bushie, Minister of Municipal and Northern Relations.

Gillingham said discussions with the province about increased funding are ongoing and the province has indicated a willingness to look at a new funding model for municipalities.

“Conversations with the province continue to be a good and positive dialogue. We have very open channels.”