Winnipeg, MB – The City of Winnipeg’s first quarter financial status and forecast report is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $39.3 million and a surplus of $0.2 million in Transit as at as at March 31, 2024. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on June 14, 2024.
The City’s forecast deficit in the tax-supported operating budget is mainly the result of higher than expected costs in Public Works of $10.5 million primarily for snow clearing and ice control; higher overtime and Workers Compensation costs in Winnipeg Fire Paramedic Services of $12.7 million; lower than expected permit fees in Planning, Property and Development of $8.4 million; and higher than expected expenditures of $11.3 million in Winnipeg Police Service, which is partially offset by increased revenues of $6.7 million.
“While it is common that the City forecasts a deficit through the first quarter of the fiscal calendar, the current forecast poses a challenge for the remainder of the year,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “City departments will need to adjust over the course of the year while addressing these early operating shortfalls.”
The Financial Stabilization Reserve Fund can be drawn on to cover up to $31.7 million of the deficit if approved by Council, which would result in the balance being fully depleted at the end of 2024. The City will also be bringing forward a mitigation plan at the next Standing Policy Committee meeting on July 5, 2024, to help address the forecasted deficit.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).