Winnipeg, MB – The City of Winnipeg’s third quarter financial status report and forecast is projecting a deficit in the tax-supported operating budget (General Revenue Fund) of $9.4 million, as at September 30, 2019. The latest financial status report and forecast has considered the impact of the October 2019 storm event because of its significance to the City’s year-end financial status. The City’s third quarter financial update will be presented at the meeting of the Standing Policy Committee on Finance on November 8, 2019.
The 2019 Financial Status Report and Forecast to September 30, 2019 has included $5.0 million of projected incremental tax-supported costs related to the City’s response to the storm.
“The city of Winnipeg experienced significant storm conditions in October that left extensive damage and requires months of cleanup and recovery work,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “The substantial cost associated with the storm cleanup means there is a likelihood that the City will need to draw on the Financial Stabilization Reserve fund. The Financial Stabilization Reserve was established to compensate for scenarios like the one the City is now facing as a result of the storm.”
Cleanup efforts from the storm are ongoing and estimates included in the third quarter financial report and forecast represent best estimates at the time of report preparation. The City has estimated that the total incremental costs relating to the storm event will be $7.9 million, which would be partially accounted for in the 2020 fiscal year because of ongoing work. The Chief Administrative Officer is to provide a reporting on the operational and financial impacts of this weather event to Council and Standing Policy Committee on Finance by January 2020.
As of report preparation, disaster financial assistance had not been announced by the Province of Manitoba and therefore no recoveries have been factored into this forecast. Council has directed the Public Service to apply for disaster financial assistance, should a program be announced by the Province.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).