Winnipeg, MB – The City of Winnipeg’s first quarter financial status report and forecast is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $25.8 million, as at March 31, 2020. Combined with other forecasted operating shortfalls, this financial status report and forecast is projecting a total year-end shortfall of $53.8 million. The status report and forecast will be presented at the meeting of the Standing Policy Committee on Finance on June 12, 2020.
The COVID-19 pandemic has resulted in revenue shortfalls in a number of areas that have required the City to respond with temporary operational changes. Essential services will continue to be delivered, but in some cases there have been temporary reductions to certain programs and services.
“The City has been working to address the challenges of the COVID-19 pandemic in order to ensure residents receive the services they depend on,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “It has been a significant challenge for all departments and will continue to be for as long as the pandemic lasts. However, actions taken to date and possible future steps noted in the report follow the COVID-19 Crisis Cash Flow Management Plan and will continue to support the City’s ability to respond and maintain services for residents.”
There have been a series of strategic measures taken by the City in order to reduce the financial impact of the COVID-19 pandemic on the tax-supported budget. Collectively, these measures have resulted in $12.9 million in forecasted savings. As at the date of the report, these measures, or “levers pulled,” have included:
- Reduction of discretionary spending;
- Temporary lay-off of non-permanent Community Services staff;
- Freeze on fleet purchases;
- Hiring freeze for the remainder of the year;
- Freeze of non-union Public Services salaries;
- Voluntary furlough program; and,
- Temporary reduction of Winnipeg Transit service with temporary lay-offs.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).