Winnipeg, MB – The City of Winnipeg’s second quarter financial status and forecast report is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $19.2 million and a surplus of $0.4 million in Transit as at as at June 30, 2024. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on September 16, 2024.
The second quarter forecast shows an improvement of $20.1 million improvement over the previous quarter, which had forecasted a $39.3 million deficit as at March 31, 2024. The improvement is due to better interest earnings, reduced debt charges and measures included in a mitigation plan to help address the forecasted deficit brought forward at Standing Policy Committee on July 5, 2024. The measures included elimination of the transfer to the Financial Stabilization Reserve for 2024, along with deferred debt charges, better interest earnings and expenditure management actions.
The City’s remaining forecasted deficit in the tax-supported operating budget is the result of several factors, including higher than budgeted costs in Public Works of $12.1 million primarily for snow clearing and ice control, annual spring clean-up activities, and roadway construction and maintenance; higher overtime and Workers Compensation costs in Winnipeg Fire Paramedic Services of $12.9 million; lower than budgeted permit fees in Planning, Property and Development of $2.5 million; and higher than budgeted expenditures of $14.9 million in Winnipeg Police Service, which is largely offset by increased revenues of $11.2 million.
“The City has made progress on the deficit forecasted at the first quarter, but there’s much more work to be done by the end of the fiscal year” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “The mitigation plan brought forward over the summer has definitely helped in that regard. However, we will need to address the replenishment of the Financial Stabilization Reserve fund in future years.”
The Financial Stabilization Reserve Fund can be drawn on to cover up to $16.3 million of the deficit, which would result in the balance being fully depleted at the end of 2024.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).