Winnipeg, MB – The City of Winnipeg’s first quarter financial status and forecast report is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $27.0 million as at March 31, 2023. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on June 2, 2023.
The majority of the forecast deficit of the General Revenue Fund is attributable to early financial challenges present in the Winnipeg Police Service (WPS) and Winnipeg Fire Paramedic Service (WFPS). WPS is forecasting a deficit in operations of $12.8 million, mainly due to expenditure management and lower than budgeted enforcement revenue. WFPS is forecasting a deficit of $7.4 million, primarily due to fire overtime and workers compensation costs.
COVID-19 impacts have lessened through the first quarter of 2023. $18.7 million of COVID-19 financial impacts were built into the 2023 Budget and an additional $1.0 million in COVID-19 financial impacts for 2023 have been identified in this report.
The Financial Stabilization Reserve Fund can be drawn on to cover up to $19.5 million of the deficit if approved by Council, which would result in the balance being fully depleted at the end of 2023. The City will also be bringing forward an action plan at the following Standing Policy Committee meeting on June 30, 2023, to help address the forecasted deficit above the $19.5 million available.
“It is common that the City forecasts a deficit through the first quarter of the fiscal calendar,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “That being said, the current forecast does pose a serious challenge for the City for the remainder of the year. Departments will be required to maintain prudent fiscal management going forward as the City focuses on these early operating shortfalls.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).