Winnipeg, MB – The City of Winnipeg’s latest Financial Status Report cites a year-end projected surplus in the tax-supported operating budget (General Revenue Fund) of $0.4 million as at September 30, 2017. Based on the projected surplus, no additional transfer from the Financial Stabilization Reserve Fund is anticipated at this time.
To address a shortfall in the tax-supported operating budget, a cost mitigation strategy was proposed and implemented that includes a hiring freeze, restrictions on discretionary departmental spending including the use of external consultants and conference related travel, as well as limiting other discretionary spending. These cost mitigation measures are projected to total $9.5 million in 2017.
In June 2017, a new collective agreement approved by Council with the Winnipeg Police Association, contributed nearly $4 million in savings from the Winnipeg Police Service budget in 2017, but these savings are reduced to $2.1 million, in part due to lower provincial funding for the cadet program and police helicopter.
In September 2017, Council approved Winnipeg Transit’s requested over-expenditure of $10.7 million along with the approval of additional deficit elimination measures to help fund its deficit over and above those identified as part of the City’s cost mitigation strategy. That included approximately $6.1 million in changes to capital project budgets and a $1 million draw from retained earnings. Including the previously identified cost mitigation measures and slight improvements to Winnipeg Transit’s most recent financial projection, the anticipated additional contribution from the tax-supported operating budget has been reduced to $1.2 million.
“The latest financial forecast demonstrates that we must continue to keep a tight control on expenses through to the end of the year,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “Departments must continue to control their expenses as changes in provincial funding or significant snow events could still impact our year-end results."
The Public Service will continue to closely monitor its expenses over the remainder of the year. The City’s financial update publicly available through the Decision Making Information System (DMIS).