The City of Winnipeg announced Monday it’s forecasting a projected deficit of $9.8 million as of March 31.

According to a news release, the main reason for the shortfall has to do with heavy snowfall in February and a $10 million over-expenditure on snow removal and ice control. The financial outlook also includes recovery of EMS costs from Shared Health.

The city expects the projected deficit will improve over the rest of the year.

“As in recent years, it is expected that the City’s first quarter projected deficit will be greatly reduced or eliminated by year end,” said Coun. Scott Gillingham in the news release.

“It is encouraging to see that City departments have remained within or near budget on annual expenditures. It is expected that departments make every effort to remain on track in order to balance throughout the remainder of this fiscal year.”

The financial report will be presented to the finance committee on June 7.