Winnipeg, MB – The City of Winnipeg's latest Financial Status Report cites a year-end projected surplus in the tax-supported operating budget (General Revenue Fund) of $1 million as at August 31, 2017, and represents a $9.2 million improvement over second quarter projections. The projected positive year-end variance is due largely to Council approved savings options for Winnipeg Transit. Based on the projected surplus, no additional transfer from the Financial Stabilization Reserve Fund is anticipated at this time.
To address a shortfall in the tax-supported operating budget, a cost mitigation strategy was proposed and implemented that includes a hiring freeze, restrictions on discretionary departmental spending including the use of external consultants and conference related travel, as well as limiting other discretionary spending. These cost mitigation measures are projected to total $9.5 million in 2017. In June 2017, Council approved a $4.3 million reduction in cash to capital contributions and an additional $0.6 million in transfers from other reserves to the General Revenue Fund.
In June 2017, a new collective agreement approved by Council with the Winnipeg Police Association, contributed nearly $4 million in savings from the Winnipeg Police Service budget in 2017, but these savings are reduced to $2.0 million, in part due to lower provincial funding for the cadet program and police helicopter.
In September 2017, Council approved Winnipeg Transit’s requested over-expenditure approval of $10.7 million along with the approval of additional deficit elimination measures to help fund its deficit over and above those identified as part of the City’s cost mitigation strategy. That included approximately $6.1 million in changes to capital project budgets and a $1 million draw from retained earnings. Including the previously identified cost mitigation measures and slight improvements to Winnipeg Transit’s most recent financial projection, the anticipated additional contribution from the tax-supported operating budget has been reduced to $1.6 million.
“The City entered 2017 facing a shortfall in the budget. Departments immediately took steps to mitigate costs and control expenses in an effort to end the year in a balanced position,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “While the latest financial report shows an improvement over previous forecasts, we remain mindful that any changes in provincial funding levels or significant snow events could impact our year-end results."
The Public Service will continue to closely monitor its expenses over the remainder of the year. The City’s financial update is publicly available through the Decision Making Information System (DMIS).