City expects Financial Stabilization Reserve Fund will be used to cover any forecasted shortfall in the General Revenue Fund as necessary
Winnipeg, MB – The City of Winnipeg’s financial status and forecast report to September 30, 2021 discloses a projected deficit in the tax-supported operating budget (General Revenue Fund) of $17.3 million and an additional shortfall of $9.6 million in Transit. The third quarter financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance on November 12, 2021.
The City had built $61.2 million in anticipated COVID-19 financial impacts into the 2021 Budget, but have identified an additional $20.7 million in COVID-19 financial impacts for the year included in this report. This has resulted in an estimated total of $81.9 million in COVID-19 financial impacts to the City for 2021.
It is expected that the Financial Stabilization Reserve Fund will be used to cover any forecasted shortfall in the General Revenue Fund as necessary. This fund was prudently positioned entering 2021 to respond to the ongoing uncertainties associated with the pandemic.
“COVID-19 has had a major impact on the City’s finances throughout 2021 and it’s expected to be a factor into 2022,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “There will be very difficult decisions made during the upcoming budget process. That being said, there is optimism that we will see further economic recovery in the coming year while the City works to implement the COVID-19 Economic Response and Recovery Plan.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).