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The City of Winnipeg’s second-quarter financial report indicates a projected deficit of $19.2 million in the tax-supported operating budget as of June 30.
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This forecast shows a $20.1 million improvement — with a small surplus of $0.4 million in Transit — from the first quarter’s projected $39.3 million deficit, attributed to better interest earnings, reduced debt charges, and actions from a mitigation plan presented in July 2024. Key measures include the elimination of the Financial Stabilization Reserve transfer for 2024 and expenditure management actions.
The remaining deficit stems from several areas: Public Works experienced higher costs of $12.1 million, including snow clearing and roadway maintenance. Winnipeg Fire Paramedic Services saw $12.9 million in higher overtime and Workers Compensation costs. Planning, Property and Development reported $2.5 million in lower permit fees. Winnipeg Police Service had $14.9 million in higher expenditures, partially offset by $11.2 million in increased revenues.
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“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, Chairman 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 may cover up to $16.3 million of the deficit, but this would deplete the fund by the end of 2024.
At this time last year the city reported its projected deficit had fallen from $27 million to $1.2 million.
The report will be reviewed by the Standing Policy Committee on Finance and Economic Development on Sept. 16.
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