Winnipeg, MB - Largely due to Winnipeg's coldest winter in over a century and higher than average snowfall, the Public Service today provided an interim financial forecast projecting a $21.4 million deficit for the City's General Revenue Fund as of March 31, 2014.
During the first quarter of 2014, $40.6 million was spent on snow removal and ice control. The total snow removal and ice control budget for 2014 is $26.7 million.
“To help mitigate this, City departments will be managing their operations with greater attention to reducing discretionary expenses”, said Deepak Joshi, Acting Chief Administrative Officer.
Based upon experience of the past few years, it is not unusual for the first and second quarter forecast to report a projected deficit. The Public Service anticipates that the projected deficit will decrease over the remainder of the year based on financial improvements typically realized from that forecasted for March 31, as well as through continued efforts to control expenses without impacting the delivery of the core services.
In addition to the projection for the General Revenue Fund, the report provides forecasts and actuals to date for the winter’s frozen services event, wherein the city experienced the highest number of frozen water pipes in over 35 years. Costs to respond to this event including service restoration and decommissioning of temporary services are estimated at $3.5 million. The event is ongoing and a final accounting of costs won’t be completed until later this year.
The report, which will be considered by the Standing Policy Committee on Finance on Thursday, June 19, 2014, can be found here.