Winnipeg, MB – The City of Winnipeg’s financial status and forecast report to November 30, 2023, is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $7.1 million and an additional shortfall of $0.9 million in Transit as at November 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 January 12, 2024.
The City’s forecast deficit in the tax-supported operating budget is mainly the result of higher than expected costs for snow clearing, roadway construction, maintenance and street cleaning in Public Works of $11.9 million; higher overtime and Workers Compensation costs in Winnipeg Fire Paramedic Services of $6.9 million; lower than expected permit fees and a decrease in transfers from the Land Operating Reserve in Planning, Property and Development for a net impact of $3.3 million; and a shortfall in Community Services of $2.1 million due to both enhanced library safety and security improvements at Millennium Library, and a shortfall in recreation services revenue. These shortfalls are partially offset by reduced pension costs, changes in corporate contingencies, and increased interest revenue due to higher interest rates.
“It can be difficult to budget for certain factors over the course of the year, such as weather conditions or economic activity. The current forecast shows that City departments have largely maintained good fiscal responsibility while dealing with different challenges over 2023,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “There are a number of items to be accounted for at year-end that will shift the City’s financial status. However, the City should be in a position to reach balance over 2023 and may draw from the Financial Stabilization Reserve Fund if needed.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).