City's forecasted budget deficit nearly cut in half: report

Winnipeg City Hall is pictured in a file image from July of 2024. (Jeff Keele/CTV News)

Winnipeg's financial picture looks a bit rosier in a new budgetary forecast.

A report submitted to the city's standing policy committee on finance and economic development forecasts a deficit of $19.2 million to the city's tax-supported budget as of the end of June.

That's a $20 million improvement over last quarter's outlook, which pegged the deficit at closer to $39.3 million.

The improvement is mainly due to better interest earnings, reduced debt charges, and measures from a mitigation plan.

Winnipeg Transit is also predicted to find more savings, adding $200,000 more to its $400,000 surplus forecasted last quarter.

The city will still need to reach into its coffers to pay for the lion's share of the deficit. The report says the financial stabilization reserve fund will cover $16.3 million, depleting its balance by the end of 2024.

The remaining $2.9 million will be covered through reductions in discretionary spending, a hiring pause for non-essential staff, deferral of debt issuance, and increased revenue estimates.

Coun. Jeff Browaty (North Kildonan), the committee's chairperson, said the city has made progress on the deficit, but there is still more work to be done before the end of the fiscal year.

“The mitigation plan brought forward over the summer has definitely helped in that regard. However, we will need to address the replenishment of the financial stabilization reserve fund in future years," he said in a news release.

Coun. Jeff Browaty is shown at a 2017 commitee meeting. (File image)

What's fueling Winnipeg's $19.2 million deficit

Winnipeg is in the red because of multiple budgetary overruns. Some of the line items of note - $12.9 million to cover higher than budgeted overtime and workers' compensation costs at the Winnipeg Fire Paramedic Services, $12.1 million to fund public works budgetary overruns for services like snow clearing and road construction, $14.9 million to cover additional costs at the Winnipeg Police Service, which is mostly offset by increased revenues, lower than budgeted permit fees worth $2.5 million, and delays in implementing a proposed 911 fee, which reduced revenues by $4.7 million.

The full report will be presented at a Sept. 16 meeting.

It can be read in full on the city's website.