City of Winnipeg forecasts deficit of nearly $40M

Posted on June 10, 2024 by Peggy

The first-quarter financial forecast for the City of Winnipeg projects a shortfall of $39.3 million in the operating budget.

The report, which will be presented at the meeting of the standing policy committee on finance and economic development on June 14, blames higher-than-expected costs for snow clearing and ice control, higher overtime and Workers Compensation costs in Winnipeg Fire Paramedic Services, and increased expenditures in the Winnipeg Police Service.

At the same time, the city has received lower than expected revenues from permit fees, the report says.

It is not uncommon for the first-quarter report to forecast a deficit. Last year at this this time, the city was looking at a $27-million shortfall, which eventually turned into a surplus of $12 million.

Still, to ensure the deficit doesn’t balloon by the second-quarter report, Coun. Jeff Browaty, chair of the finance standing policy committee, said in a news release that all departments will need to adjust to address the early operating deficit.

The city will also bring forward a mitigation plan at the next meeting of that committee on July 5, to help address the forecast deficit, the news release says.

The city has a reserve fund that is intended to help with financial challenges, but its balance at the moment is $31.7, which means it would be fully used if the deficit scenario doesn’t improve by year’s end.