Winnipeg, MB - The City of Winnipeg's Financial Status Update Report to November 30, 2016, will be presented at the meeting of the Standing Policy Committee on Finance on January 16, 2017. The Report is projecting a deficit of $6.2 million for the 2016 fiscal year (ending December 31, 2016) as a result of the increased amount of snow removal and ice control required to deal with the above average snow accumulation in December.
Over the course of 2016, $39 million in expenses is attributed to snow removal and ice control operations, resulting in a projected over expenditure of $11 million for the 2016 Streets Maintenance operations snow removal and ice control budget. The projected snow clearing costs for December 2016, are estimated to be $18.9 million. The original budgeted amount for December 2016 was $5.6 million, which resulted in a $13.3 million over expenditure for December. The snow clearing budget to November 2016 was underspent by $2 million, which resulted in the net over expenditure of $11 million for 2016.
“Immediate steps are being taken to address the 2016 forecasted deficit, and impacts to the 2017 budget,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee of Finance. “This includes identifying ways to control discretionary spending and departmental expenses in 2017.”
The costs incurred in December 2016, are still reflected as an estimate in the Report, as actual costs to the end of the 2016 fiscal year will be presented to the Standing Policy Committee on Finance on February 13, 2017. The City anticipates that the projected deficit will have slight improvements in the final month of the year, once year end budgets from all City departments are accounted for.
At its meeting on December 14, 2016, City Council approved measures to be taken in the event a deficit remains at the end of the City’s fiscal year. The Public Service is monitoring the General Revenue Fund on a regular basis and will take the appropriate measures to eliminate a 2016 deficit.