The City of Brandon has avoided an 11.7 per cent tax hike, cutting the increase nearly in half in this year’s budget – but the city’s mayor warns an even larger tax increase could be coming down the pike.
When the city released its proposed 2025 capital budget earlier this year, it included an 11.7 per cent tax hike. This was already on top of a 9.4 per cent increase last year.
When the city’s budget was approved, there was some relief for homeowners, as the tax hike was cut down to 6.9 per cent.
“It’s still a significant increase. We did know that,” Brandon Mayor Jeff Fawcett told CTV News.
Read More: https://www.ctvnews.ca/winnipeg/article/brandon-approves-69-tax-increase-in-2025-budget/
Fawcett said there were a few factors that allowed for the lower-than-anticipated hike.
The province doubled its contributions to the Western Manitoba Centennial Auditorium, saving the city $500,000.
The city was also able to cut the operating budget for its outdoor sports complex from $600,000 down to about $350,000.
Finally, the city had a nearly $900,000 surplus in funds that weren’t spent in 2024, which went directly towards reducing taxes.
But Fawcett warned these were all “one-offs.”
“We know that with some of the decisions we made, next year’s taxes potentially are higher,” he said.
So how much could homeowners be paying next year? Fawcett said based on the reductions made in this year’s budget, next year’s tax hike is forecasted around 16 per cent.
“Now, of course, that’s quite high, not palatable to council or the public. We will work to get that down,” he said.
Fawcett said the next two years need to be “correction years.” The mayor previously told CTV News the city needs to make up for years of low taxes, replenish reserves, and fund core services and needed infrastructure.
But to avoid a 16 per cent increase, Fawcett said the city may need to take a look at service levels.
“We don’t want to cut service if we don’t have to. We want to make sure that it’s maintained,” he said. “But there is going to be a lot of hard looks.”
He said city council is already working on next year’s budget. He said he plans to meet with the provincial and federal governments as well.
-with files from CTV’s Jeff Keele
