Winnipeg, MB – The City of Winnipeg’s unaudited financial status report to December 31, 2023, discloses a shortfall in the tax-supported operating budget (General Revenue Fund) of $297,000 and an operating surplus of $1.3 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 March 8, 2024.
The City’s financial position improved by $6.8 million over the final month of reporting to arrive at $297,000 below balance in the General Revenue Fund. The Financial Stabilization Reserve Fund will be used to cover the remaining shortfall in the General Revenue Fund, as approved by Council on September 14, 2023. This will leave a balance in the Financial Stabilization Reserve Fund of $15.7 million at the end of 2023, which is $62.3 million lower than the Council mandated minimum balance.
“The City’s year-end results for 2023 are very encouraging when we consider the major financial challenges related to COVID-19 that we’ve faced in recent years,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “Several factors go into these preliminary year-end results – including less snow over 2023, positive interest revenues, pension savings with Winnipeg Police Service, and Transit’s ongoing recovery following the pandemic. In the end, departments were able to manage their budgets responsibly throughout the year and we enter 2024 in a position to start replenishing the Financial Stabilization Reserve Fund to help us in future years.”
The most significant positive results over 2023 came from savings related to the Winnipeg Police Pension Plan and an increase in the City’s short-term investment interest. As previously reported in 2023, the savings in the Winnipeg Police Pension Plan are due to an actuarial valuation that has allowed a lower contribution rate over 2023. These savings at year-end are $23.7 million for the fiscal year of 2023. Also, Corporate Finance reported a surplus of $10.2 million over 2023 due to investment interest revenues.
The total over-expenditure for snow and ice operations in 2023 is $4.2 million, compared to an over-expenditure of $52.5 million in 2022. The City had adopted a budget for snow and ice operations of $36.3 million for the year.
The City’s financial update is publicly available through the Decision Making Information System (DMIS).