Winnipeg, MB - The City of Winnipeg’s second-quarter financial status report forecasts a year-end consolidated shortfall of $18.8 million, an increase of $4.8 million from the first quarter.
A report to be presented at the September 14 meeting of the Standing Policy Committee on Finance and Economic Development outlines cost pressures we are currently facing.
These include:
- Volatility in global commodity prices, including fuel, due to the ongoing war in Iran
- Higher-than-budgeted snow and ice control costs due to significant snowfall in early 2026
- Increasing workers’ compensation claims and overtime in Winnipeg Fire Paramedic Service, Winnipeg Police Service, and Winnipeg Transit
- Lower-than-forecasted Transit revenue
We continue to take steps to manage these pressures, including:
- One-time transfers of $18.4 million to the Financial Stabilization Reserve, resulting in a forecasted year-end balance of $15.6 million after covering the shortfall
- Increasing budget for snow and ice control to better reflect actual costs
We are also forecasting to achieve $55.1 million of our $58.4 million savings target for 2026 — an increase of $15.7 million from the first-quarter forecast.
"We continue to face cost pressures, including high fuel prices and heavy snowfall from earlier this year," said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. "We are managing these pressures prudently by closely monitoring spending and continuing to make strong progress toward our 2026 savings target. That disciplined approach is essential to protecting the services Winnipeggers rely on while maintaining our long-term financial stability."