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 $8.7 million as at November 30, 2017, and represents a $7.0 million improvement over the October projections. The increase in forecasted surplus from October projections is largely due to an improvement in projected net taxes added from new properties to the property tax roll and changes adding value to existing properties such as renovations. In addition, Winnipeg Transit is projecting improved fare revenues and increased cost savings. 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 included 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, thereby covering the shortfall.
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 $1.3 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 improvements to Winnipeg Transit’s most recent financial projection of approximately $4.6 million, no additional transfer to Winnipeg Transit from the General Revenue Fund is required.
The City is still in discussions with the Winnipeg Regional Health Authority (WRHA) regarding funding for ambulance services for 2017 and future years. While no decisive long-term funding agreement has been reached, the WRHA has advised that 2017 funding will continue in line with 2016 levels, which could lead to a $2.1 million shortfall in the year-end forecast.
“We will continue to press the Province to make whole the funding for ambulance services in 2017,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “While we’ve been diligent in improving our financial position, the provincial funding uncertainty could negatively impact our year-end results.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).