City releases Financial Status and Forecast Report to September 30, 2022

Released: November 25, 2022 at 11:16 a.m.
Shortfalls in City’s operating budget projected largely due to continued COVID-19 impacts and significant over-expenditure in snow and ice operations

Winnipeg, MB – The City of Winnipeg’s third quarter financial status and forecast report is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $56.8 million and an additional shortfall of $17.2 million in Transit as at September 30, 2022. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on December 1, 2022.

COVID-19 continues to have a significant impact on the City’s financial forecast above what was budgeted for. As part of the 2022 budget update, the City had budgeted $41.3 million for anticipated COVID-19 related financial impacts. However, as at September 30, 2022, an estimated $12.1 million in further COVID-19 financial impacts are identified in the report.

Additional financial pressures are being felt as a result of significant snowfall this past winter and high fuel rates. The total over-expenditure relating to snow removal and ice control is forecasted to be $40.9 million for the year. The report also notes fuel prices have escalated beyond what was anticipated in the 2022 budget update, which is largely impacting the operating budgets of Transit and the General Revenue Fund. The estimated financial impact in this forecast for fuel for the year is $10.7 million.

“The third quarter financial report continues to show how the City has been challenged by the continued financial impacts of COVID-19 while also contending with significant over-expenditures in snow and ice operations this year,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “Given the current year-end forecast, the City’s Financial Stabilization Reserve Fund may be left significantly depleted if it’s drawn upon to avoid a deficit in the General Revenue Fund. Current projections show a year-end balance of the reserve fund to be $14.5 million, which is far below the Council-mandated minimum balance. The limited resources remaining in the Fiscal Stabilization Fund will need to be considered in the 2023 annual budget update.”

The City’s financial update is publicly available through the Decision Making Information System (DMIS).

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