The city's animal services agency is calling for a new late fee for pet owners who don't renew their pet licenses on time.

The proposed fee of $4 for each month a pet owner is late will go before the city's standing policy committee on innovation next week.

If passed by the committee next Friday, the proposed fee would then need to be approved by executive policy committee and city council.

The fee would apply to both dog and cat licenses and be capped at $20. All dogs and cats in the city must have a license and owners could face fines if their animal is caught without one.

Currently there are no fees for late renewal of pet licenses in Winnipeg. Pet owners are sent a reminder one month before it's due, and another reminder if it's not renewed.

A report from the city's animal services department suggests the fee is needed to help offset a deficit for the 2017 fiscal year. According to the report, funding for animal services was cut by nearly $85,000 from 2016 to 2017.

Since its designation as a special operating agency in 2000, animal services says the number of incidents it receives has risen by 66 per cent, but funding has decreased by 20 per cent.