City releases Financial Status and Forecast Report to September 30, 2023

Released: November 27, 2023 at 10 a.m.
Third quarter report shows forecasted deficit of $3.1 million

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 $3.1 million and an additional shortfall of $2.9 million in Transit as at September 30, 2023. 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, 2023.

The City’s forecast deficit in the tax-supported operating budget is mainly the result of a shortfall in Winnipeg Fire Paramedic Services of $6.9 million, largely from overtime and Workers Compensation costs; Planning, Property and Development’s shortfall in permit fees and a decrease in transfers from the Land Operating Reserve of $4.8 million; and Public Works’ snow clearing and street cleaning overruns of $10.4 million. These shortfalls are partially offset by reduced pension costs, changes in corporate contingencies, and increased interest revenue due to higher interest rates.

“While there remains a forecasted deficit, the City’s third quarter financial position is encouraging,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance. “We await the final costs of snow and ice operations for this year, but it is a positive that the City is currently facing a projected deficit of this size. Historically the City has been able to address this kind of challenge and it will be important for departments to remain fiscally responsible over the final months of 2023 to meet balance.”

COVID-19 impacts have been minimal for 2023. $18.7 million of COVID-19 financial impacts were built into the 2023 Budget and an additional $4.9 million in COVID-19 financial impacts for 2023 have been identified in the third quarter financial status and forecast report.

The City is projected to be much closer to balance as of the third quarter when compared to this point in 2022. As at September 30, 2022, the City had a projected deficit in the tax-supported operating budget of $56.8 million, which was largely due to the continued financial impacts of COVID-19 and snow and ice control operations over 2022.

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

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