As of September 30, 2024, the City of Winnipeg is staring down a $23.4 million deficit in its tax-supported operating budget. This deficit, which represents 1.7% of the city’s budgeted expenditures, was revealed in the city’s third-quarter financial status and forecast report. The report will be presented to the Standing Policy Committee on Finance and Economic Development on November 27, 2024.
The latest forecast shows a $4.2 million increase in the deficit compared to the second quarter, which had projected a year-end deficit of $19.2 million. This rise is attributed to declining revenues from permit fees and license revenues, along with an increase in appeal allowances in the city’s Assessment and Taxation department. However, the financial situation is being partly mitigated by deferred debt charges, improved interest earnings, and strategic expenditure management actions.
The Financial Stabilization Reserve Fund could be used to cover up to $14.3 million of the deficit if approved by the Council. However, this would fully deplete the reserve’s balance by the end of 2024.
Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development, highlighted the city’s ongoing financial struggles. “We’re facing ongoing financial challenges as population growth, service demands, and inflation outpace our revenue,” Browaty said. “Winnipeg collects less in property tax from the average home than any other major Canadian city and lacks other significant growth revenue sources. We’re looking to the Province for additional funding or revenue options as we prepare the 2025 budget.”
For those interested, the city’s financial update is available through the Decision Making Information System (DMIS).
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