City releases year-end Financial Status Report for 2022

Released: February 7, 2023 at 9:51 a.m.
Shortfalls largely attributable to COVID-19 and snow and ice operations

Winnipeg, MB – The City of Winnipeg’s unaudited financial status report to December 31, 2022, discloses a shortfall in the tax-supported operating budget (General Revenue Fund) of $83 million and an additional shortfall of $4.9 million in Transit. The year-end financial status report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on February 13, 2023.

The City’s shortfall over 2022 can largely be attributed to impacts from COVID-19 above what was budgeted for last year and over-expenditures in snow and ice operations. The total over-expenditure for snow and ice operations in 2022 is $52.5 million, including an over-expenditure of $8.4 million for the month of December. The City had budgeted $41.3 million for anticipated COVID-19 related financial impacts in 2022, but has identified an additional $12.4 million in financial impacts for the year.

The shortfall in Transit has been greatly reduced following confirmation from the Province of Manitoba that it had allocated $19.4 million to the City from the Government of Canada’s contribution to support municipalities facing transit shortfalls. From this allocation, $9 million will be used for the 2022 fiscal year and the remainder will support operations in 2023.

The Financial Stabilization Reserve Fund will be used to cover the forecasted shortfall in the General Revenue Fund as approved by Council on June 23, 2022. The Financial Stabilization Reserve Fund balance will be $5.3 million at the end of 2022, $66.4 million lower than the Council-mandated minimum balance.

“The City faced serious fiscal challenges in 2022 between the continued impacts from COVID-19 and unprecedented over-expenditures in snow and ice operations,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “The Financial Stabilization Reserve Fund will be used to resolve the City’s shortfall for 2022, but it leaves our reserves greatly depleted to end the year. Winnipeg residents can look forward to learning what the City’s plan is moving forward with the release of the 2023 Budget Update this week.”

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

The City of Winnipeg will be releasing its 2023 Budget Update on Wednesday, February 8, 2023. Further details will be available on budget day at winnipeg.ca/budget.

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