Winnipeg, MB – The City of Winnipeg's updated Financial Status Report and Forecast is showing a projected deficit in the tax-supported operating budget (General Revenue Fund) of $6.9 million, as at August 31, 2019. The City’s latest financial update will be presented at the meeting of the Standing Policy Committee on Finance on October 11, 2019.
The updated financial forecast marks an improvement of about $800,000 since the second quarter projection of a $7.7 million year-end deficit, as at June 30, 2019. The Public Service anticipates that the projected deficit will continue to decrease over the remainder of the year, based on anticipated financial improvements, as well as through continued efforts to control expenses without impacting the delivery of core services.
“Maintaining sound fiscal management will be necessary to end the year in a balanced position,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “Departments will be expected to make every effort to control expenses and remain within budget over the remaining months in order to eliminate the forecasted deficit.”
A major factor contributing to the forecasted deficit figure includes a significant over-expenditure by the Public Works Department related to snow removal and ice control. During the year, $46 million is expected to be spent on these operations, resulting in a projected over expenditure of $11.2 million. The over-expenditures are the result of above average snow accumulation during February 2019.
Discussions with Shared Health regarding funding for 2019 are ongoing and this current forecast has assumed a funding model where EMS costs are fully recovered from Shared Health.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).