The City of Winnipeg has released its Financial Status and Forecast report to November 30, 2022, and they are predicting a deficit to the General Revenue Fund of $69.6 million and an additional $13.7 million for Winnipeg Transit.
According to the city COVID-19, significant snowfall and high fuel rates are largely responsible for the deficit.
The City had budgeted $41.3 million in anticipated COVID-19 financial impacts but as of November 30, 2022, a further $12 million in impacts has been identified.
The total over-expenditure relating to snow removal and ice control is forecasted to be $52.6 million for the year.
“The continued impacts of COVID-19 and significant over-expenditures in snow and ice operations are the main reasons for the City’s forecasted financial shortfalls this year,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development. “Recent announcements by the federal and provincial governments on financial support for municipalities with transit systems is encouraging and should help alleviate significant operational losses caused by the pandemic. Even with this support, the City’s Financial Stabilization Reserve Fund may be left significantly depleted if it’s drawn upon to avoid a deficit in the General Revenue Fund. The limited resources left remaining in the Fiscal Stabilization Fund will need to be considered in the 2023 annual budget update.”
