Winnipeg, MB – A report being considered by Executive Policy Committee next week, is recommending a new approach to Council's approving of the City's budget that would authorize planned expenditures and anticipated revenues on a four-year cycle. The report recommends adopting the new budgeting practice in time for the 2020 budget year.
“Setting out expenditures and revenues for consecutive budgetary years, as opposed to on a 12-month period, will provide citizens with greater long term certainty concerning City taxes and fees, as well as clarity on service levels,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “It is also anticipated approving a multi-year budget would significantly decrease the amount of time and resources expended by public service and elected officials in achieving fiscal balance over a longer period of time.”
Multi-year budgeting is a practice applicable to both operating and capital budgets, as well as tax-supported and utility rate-based operations. It is considered a best practice by the Government Finance Officers Association and has been adopted by other major municipalities in Canada.
Approving a multi-year budget would allow for the City to maintain a balanced tax-supported budget over consecutive years and result in better integration and alignment of long-term development plans. The City currently has a balanced six-year capital program, in which Council adopts the first year, then adopts the five forecast years in principal and revisits the plan each year. The City also has a practice of approving multi-year utility rate funding plans to address utility needs.
The City’s proposal for multi-year budgeting would result in a full budgetary review in the year following a municipal election. If multi-year budgeting were in place for 2020, the four year budget cycle would take effect on January 1, 2020, and continue to December 31, 2023.
The report in its entirety is available through the Decision Making Information System (DMIS).