Winnipeg, MB - In order to address the City of Winnipeg’s anticipated 2017 budget shortfall of $9.5 million, immediate cost mitigation measures are being put in place.
The Council adopted 2017 budget included transferring an estimated surplus of $9.5 million from 2016. However, due largely to a record snowfall in December, the 2016 budget year ended in a tax-supported deficit, prior to Council approved deficit elimination measures, and the City must now find $9.5 million in savings.
As a part of the cost mitigation strategy, departments have been provided a target for cost reductions. These targets were determined based on each department’s adopted 2017 budget, after removing fixed costs such as debt charges, grants, etc. Not all departments will receive a target, but each department has been asked to participate in the effort to find savings and efficiencies to help meet organizational savings goals.
To help achieve financial targets in departments, the following cost saving measures are being implemented:
- A hiring freeze will be put in place. If a department deems a position critical, a corporate review committee has been put in place to determine if that position should be filled. The review committee will look at the impacts to business continuity, service levels, safety, and financial implications if the position is not filled. The freeze will not apply to police officers, fire fighters, paramedics, or transit operators.
- Restrictions are in place on departmental discretionary spending including:
- avoiding the use of external consultants,
- seeking CAO approval on all conference travel, and
- limiting other discretionary spending.
- A review of 2017 cash to capital projects is underway to determine what projects could be postponed or reprioritized. A separate report for Council consideration will be coming forward to Council, as Council approval will be required to implement capital budget changes.
In addition to the above measures, the CAO is implementing a 0% wage increase in 2017 for all senior management and staff who are not members of a collective bargaining unit.
There will be more direction and other initiatives considered as the City continues to move forward in this process, and look for innovative and efficient ways to find cost savings to meet budget targets by year end.
For the remainder of the year, each Financial Status Report to the Standing Policy Committee on Finance will review progress on these cost mitigation measures.
“In February we stated the need to control spending to address the 2017 budget shortfall, and these measures will help us make up this shortfall,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “While the efforts announced today aim to reduce departmental expense, we also want to assure the public that emergency services levels will be maintained.”