Winnipeg, MB - The Public Service today provided an interim financial forecast report which projects a deficit of $6.1 million for the City’s General Revenue Fund as of November 30, 2014. This is an improvement over the September 30, 2014 forecast which projected a $14.9 million deficit.
Factors that have contributed to a lower than previously forecasted deficit include lower than anticipated salary and benefit costs and higher photo radar revenue projections arising from fines issued in construction and school zones. As well, there is an anticipated deferral of costs from roadway maintenance activities that have been delayed due to an early onset of cold temperatures.
“The increased deficit reduction to November 30 also includes continuing efforts by the Public Service to control expenses without impacting the delivery of core services to Winnipeggers,” said Acting Chief Administrative Officer Michael Jack.
Additional changes to the City’s projected deficit for 2014 are expected to be reported for the month of December and a further deficit reduction may occur.
Deficit forecasts throughout 2014 were primarily the result of an over-expenditure related to snow removal and ice control. To the end of November, $49.6 million was spent on snow removal and ice control. The total Streets Maintenance Operations snow removal and ice control budget for 2014 was $26.7 million.
The City also experienced the highest number of frozen water pipes in over 35 years. Costs to respond to this event including service restoration are estimated at approximately $4 million.
View the report, which will be considered by the Standing Policy Committee on Finance on Thursday, January 8, 2015.