Gas prices, snow clearing and COVID bring financial hit to Winnipeg

A new snapshot from the city shows Winnipeg continues to deal with shortfalls in its operating budget, with COVID-19, significant snowfall last winter, and high prices at the pump to blame.

The city released the second quarter financial status forecast report on Tuesday, and it said the city is expecting to deal with a $55.9 million tax-supported operating budget deficit. On top of that, Winnipeg is also set to have a $14.7 million shortfall with transit.

The city said COVID continues to be the biggest factor. In the 2022 budget update, the city had budgeted $41.3 million for COVID-related costs. However, that number has increased by $10.9 million.

Excessive amounts of snowfall are also to blame, with the city saying the "over-expenditure relating to snow removal and ice control is forecasted to be $40.3 million for the year."

The report also noted gas prices are much higher than what was originally predicted, which has largely impacted transit and the General Revenue Fund, which has cost the city $9.3 million.

"In the event the General Revenue Fund reports a deficit at year-end, the City may transfer the amount required to avoid a deficit from the Financial Stabilization Reserve Fund. However, it's important to note the balance of the reserve fund is currently projected to be $20.1 million at the end of 2022, far lower than the Council-mandated minimum balance," said Coun. Jeff Browaty in a news release.

Browaty, who is the chairperson of the Standing Policy Committee on Finance, noted the city needs to continue to "maintain prudent fiscal management" throughout the remainder of the year to minimize the impact on city operations.