Winnipeg, MB – The City of Winnipeg is making significant progress rebuilding its Financial Stabilization Reserve (FSR) after years of financial pressure from the COVID-19 pandemic, inflation, major snow events, and other unexpected costs.
A report to be considered by Executive Policy Committee on May 19 recommends two one-time transfers to the FSR – the City's rainy-day fund for managing unexpected financial pressures:
- $3.4 million from the Southwest Rapid Transitway and Pembina Highway Underpass Payment Reserve
- $15 million from the City's share of the tri-party funded Accelerated Regional Street Renewal Program
If approved, these transfers would bring the projected 2026 year-end balance of the FSR to $44.2 million – more than 70 precent higher than the 2025 year-end balance of $25.9 million.
"Rebuilding the Financial Stabilization Reserve is one of the clearest signs that the City is getting back on stronger financial footing," said Mayor Scott Gillingham. "This reserve was drawn down to help manage real pressures during a difficult period, and now we're making responsible progress to restore it. That means we'll be better prepared for future challenges while continuing to invest in roads, infrastructure, and core services."
The reserve was drawn down to nearly zero during the pandemic and has continued to face pressure from inflation, snow-clearing costs, and other financial challenges. The required balance for the reserve was $85.1 million in 2025.
The recommended transfers would use surplus funds from completed or previously funded programs and would not impact current road renewal projects if approved.
Audited statements show clean audit opinion and record infrastructure investment
The City has also released its audited consolidated financial statements for 2025, which show an overall annual surplus of $491 million and a clean audit opinion from its external auditors, KPMG.
The consolidated surplus includes all City operations, including utilities, reserves, and funds that are restricted or committed to future infrastructure projects. This includes major long-term investments such as upgrades to the North End Water Pollution Control Centre. It does not represent unallocated cash available for new spending.
"The audited statements show the City is managing through financial uncertainty while still making major investments in infrastructure," said Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. "We saw record investment of $788 million in infrastructure, reduced our debt, and continued rebuilding the Financial Stabilization Reserve. That's responsible financial management, and it supports our ability to provide reliable services while keeping property taxes among the lowest in Canada."
The City's audited consolidated financial statements for the year ending December 31, 2025 are publicly available through the Decision Making Information System.