Winnipeg could more than double the balance of its “rainy day fund” from $17.4 million in 2024 to a projected $36.4 million by the end of 2025, if City Council approves a proposed new replenishment plan.
“The Financial Stabilization Reserve helped carry the City through the pandemic, and now we’re focused on building it back up,” said Mayor Scott Gillingham. “We’re taking responsible, proactive steps to strengthen the City’s financial foundation and protect services Winnipeggers rely on.”
A formal report recommending a new set of contributions to the FSR will be presented to Executive Policy Committee next week. The recommended measures include:
- $5.4 million from Winnipeg Transit’s 2024 operating surplus
- $1.8 million from Animal Services’ 2024 surplus
- $3.7 million from a capital surplus in the Southwest Rapid Transitway Reserve
In addition, the Public Service will allocate $6.9 million in new, unconditional provincial funding from the One Manitoba Growth Fund to the reserve to help manage financial risks at year-end.
Together, these interim measures would bring the projected FSR balance to $36.4 million by the end of 2025. This is a dramatic financial turnaround for a fund that was drawn down to just $2.1 million in 2022 in response to the financial impacts of COVID-19, inflation, and major snow events.
Current Council policy requires the reserve to maintain a minimum balance equal to six percent of tax-supported operating expenditures, approximately $85.1 million in 2025.
“The reserve is one of the most important tools we have to respond to uncertainty without raising taxes or cutting services,” said Councillor Jeff Browaty, Chair of Finance and Economic Development. “This is a strong step in the right direction, and we’ll continue working to rebuild the reserve through the 2026 budget process.”
Ongoing Focus on Savings
The City’s new Budget Savings Group – made up of Councillors Browaty, Evan Duncan, and Matt Allard, along with Chief Financial Officer Tracy Graham – continues to meet regularly to explore opportunities for cost savings and ways to rebuild the FSR.
In recent weeks, the group has identified several efficiencies to help improve the City’s financial position:
- $673,262 in 2025 savings from streamlining the City’s vehicle fleet.
- $730,000 in projected savings over five years through AI-powered invoice processing.
- $3.6 million in capital savings and $1 million in ongoing annual savings by modernizing on-street parking payments.
These initiatives reflect the City’s ongoing efforts to find practical savings without compromising essential services.