RYBACK: Winnipeg’s Budget Blunder: Wasteful spending, pay Hikes, no real cuts

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The City of Winnipeg’s budget process has officially concluded. To say it was underwhelming would be an understatement. The budget review meetings failed to result in tough decisions or meaningful changes.

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When individuals or corporations face financial difficulties, they must adjust their spending and increase revenue to avoid insolvency or bankruptcy. If the City of Winnipeg were a corporation, it would be closer to insolvency than recovery. In the corporate world, discretionary and non-essential spending would be cut. Executive and management compensation would be frozen — perhaps even reduced — and bonuses would be off the table unless performance targets were met. Individuals facing financial strain might cut back on luxury expenses, such as brewing coffee at home instead of buying it daily or reducing restaurant meals. The city should operate with the same financial discipline, but it does not.

Previously, I wrote about the first wave of budget review meetings, raising concerns and making predictions. Later, I appeared as a delegate at the first Executive Policy Committee (EPC) budget review meeting, where I reiterated some of my earlier recommendations and identified critical budget issues. I also addressed matters specific to the EPC, which fall outside the jurisdiction of standing policy committees.

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I urged the EPC to embrace change that would improve efficiency and performance. However, I warned that any attempt to implement real change would face resistance from those entrenched in the old culture. I reminded them that the Chief Financial Officer (CFO) has been tasked with achieving $30.7 million in efficiency savings by 2025. Yet, a month into the fiscal year, efficiency opportunities have neither been identified nor implemented, making it unlikely that this target will be met. The city does not operate like a high-performance organization.

I even suggested that the mayor’s office should find ways to cut $100,000 from its approximate $2 million annual budget. One example was eliminating the free parking benefit for elected officials and staff. The mayor’s office currently spends up to $4,500 per month on parking at the Centennial Concert Hall — almost half of my suggested target. This proposal was particularly relevant given that city council is encouraging residents to take public transit or use active transportation. Furthermore, many councillors work from home, attend meetings outside city hall or use community offices.

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At a previous Standing Policy Committee on Finance meeting, I pointed out that several city executives and managers received an average pay raise of 8% in 2023 compared to 2022. The city auditor’s salary increase was even higher at 20%. These raises should have been frozen — or even rolled back. Meanwhile, many councillor executive assistants have seen their salaries increase by 40% or more since 2023. I suggested that these raises should have been distributed more gradually and should now be capped for the next year. Councillor salaries should be frozen for the remainder of the term — perhaps even reduced.

I also urged councillors to find ways to reduce their ward expenses, recommending a moratorium on new councillor community offices and encouraging them to share existing office spaces.

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Here’s how some councillors are currently spending their ward allowances:

• Five councillors collectively spend over $10,700 per month on rent for their community offices, as well as utilities, telephone, and internet costs. Yet, their office locations are not listed on the city website or their personal websites.

• Four councillors spend $3,100 per month on bus bench and recycling box advertising.

And that’s just the beginning — there are many more areas where savings could be realized.

I concluded my presentation by emphasizing that if city performance and service quality improved, more could be achieved without additional costs. Some projects should be downsized or even put on hold. City council must find a way to cover the $10.8 million deficit from 2024 and begin replenishing the depleted financial stabilization reserve, which needs more than $81 million in the coming years. Hard decisions must be made. The workplace culture must change. The city must do more with less. Wasteful spending must be curtailed, and non-essential expenditures should be minimized until financial stability is restored.

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What kind of responses did I receive?

Rookie Councillor Evan Duncan remarked, “If you want good service, you have to pay for it.” He then added, “Folks like Mr. Ryback don’t want to pay for anything.” At that point, I called for a point of order, as his comment was entirely off-topic and inappropriate.

Councillor Lukes followed with an unrelated question about residential street sanding. Mayor Gillingham stepped in, clarifying that her question was not budget-related and advising me that I was not obligated to answer. I didn’t.

I identified millions of dollars in potential savings and reallocation opportunities to achieve financial stability while improving services. Yet, EPC members did not ask a single question about my proposals, and none of my recommendations were considered for budget adjustments.

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However, I felt vindicated when councillors Mayes, Rollins, Gilroy, and Orlikow later echoed similar concerns during the budget debate. It has also been encouraging to receive support from friends and even strangers who have reached out, expressing agreement with my views and urging me to keep fighting for fiscal responsibility.

The next eleven months will be challenging. But I will continue to push for real change.

— Kelly Ryback retired from a successful corporate career early in 2020. He held leadership positions and business development responsibilities at BellMTS for more than 18 years.

Have thoughts on what’s going on in Winnipeg, Manitoba, Canada or across the world? Send us a letter to the editor at wpgsun.letters@kleinmedia.ca

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