Steinbach city council has approved a motion calling on the Hanover School Board to implement a zero tax increase this year. Councillor Earl Funk put forward the motion, noting that more and more residents are expressing concern about property taxes. The city collects both municipal and school taxes. Funk says the city has not had a tax increase for the last four years while the school division has raised taxes in each of those years.

Councillor Earl Funk proposed the motion.
"We've also noticed that development has been slower in the past year and what I've found over time is the best thing to spur development, to spur business, to make things really happen in a community, is to leave more money in the pockets of the consumer. To do that, we need to keep taxes low. The school taxes are 55% of our taxation bill. As we, as a community, as a municipality, are holding the line on taxes, I would like to encourage the Hanover School Division to do the same."

Councillor Cari Penner seconded the motion.

"Council and the city itself have striven to keep our taxes very low and affordable. We've coped with growth in the city, we've coped with some major projects that we've done, we've prioritized, we've been very prudent, I think, in our budgeting. I think it's fair to ask the school division to do the same."

Councillor John Fehr supported the motion with some reservations.

"I am somewhat reluctant because, as a governing body and them being a governing body, nobody wants to be told what we expect from them. But I think the system is seriously flawed and I think that if we could get the school division to collect their own taxes, then we wouldn't have to deal with all the questions regarding increased taxes all the time."

Councillor Jac Siemens had the lone dissenting vote.

"I'm a little bit uneasy writing a formal letter to the Hanover School Division without first having a discussion with them. I agree with the intent of the motion. I agree that we do need to raise that awareness."

In the end, council voted 6-1 to approve the motion with Siemens casting the lone dissenting vote. Mayor Chris Goertzen appreciates the concerns expressed by Fehr and Siemens but feels the point must be made.

"I too am reluctant to make an edict on what another body should be doing. They have challenges and resource pressures as well. But they aren't much different than what we face so I think for them to consider holding taxes, especially at a time when we're really trying to spur growth and really trying to encourage it, is not out of the question. They do have to eventually make their own decisions. But for us to ask them to consider it I think is appropriate."