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 of $23.4 million (1.7% of budgeted expenditures) as at September 30, 2024. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on November 27, 2024.
The third quarter forecast shows an increase of $4.2 million in the forecasted deficit compared to second quarter reporting, which forecasted a year-end deficit of $19.2 million. Reasons for the slight increase include softening in revenue forecast in permit fees and license revenues, along with an increase in appeal allowance in our Assessment and Taxation. The year-end forecast is being helped by deferred debt charges, better interest earnings, and expenditure management actions.
The Financial Stabilization Reserve Fund can be drawn on to cover up to $14.3 million of the deficit, if approved by Council. This would result in the balance being fully depleted at the end of 2024.
"We’re facing ongoing financial challenges as population growth, service demands, and inflation outpace our revenue,” said Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “Winnipeg collects less in property tax from the average home than any other major Canadian city and lacks other significant growth revenue sources. We’re looking to the Province for additional funding or revenue options as we prepare the 2025 budget.”
The City’s financial update is publicly available through the Decision Making Information System (DMIS).