What a difference a month can make. In October, the City of Winnipeg was projecting its operating budget would close the year with a surplus of $1.7 million. Revised projections released today show it’s likely to be closer to $8.7 million.
The city is crediting the bulk of the hike in the projected surplus to anticipated tax revenue from new properties and increased taxes from older properties that have been renovated.
Nods were also given to a new collective agreement with the Winnipeg Police Service in June, and reigned-in discretionary spending, restrictions on hiring outside consultants and a hiring freeze.
The ability to balance the city budget was looking grim this spring following extra spending on snow removal and a pothole appeared in city revenues when the province withdrew funding meant to cover half the cost of Winnipeg Transit.
It now looks like improvements in Winnipeg Transit’s fare revenues and its deficit elimination measures, including millions in changes to its capital projects budget, now will mean there will be no need for additional transfers to transit from the city’s general revenue fund this year.
The city is still pressing the province for changes to the way ambulance services are paid for. It indicates if funding stays the way it was in 2016, it could take a $2.1 million bite out of the year-end forecast.
The city’s operating budget for 2017 was $1.08 billion
-Staff-
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