'We need new revenue': Winnipeg projecting operating shortfall by end of 2024

The City of Winnipeg is projecting an operating shortfall in 2024, and the plan to cover it off would completely drain the city's rainy day fund.

"I don't think there's been a situation quite as dire as this. COVID is certainly part of it," said Coun. Jeff Browaty.

A third-quarter report forecasts a deficit for the end of 2024 at $23.4 million.

That's a $4.2 million increase from the last quarter.

To help mop up the red ink, $14.3 million will be used from the rainy day fund, still leaving a shortfall of $9.1 million.

If that can't be covered by years end, the city will have to carry it over to 2025, meaning next year's budget would start in the hole.

"I've not seen this in the ten years I've been here," said Mayor Scott Gillingham.

The city is facing cost pressure with snow, fire, and paramedic overtime, as well as a growing population with growing demands.

Gillingham and the Association of Manitoba Municipalities (AMM) are calling on the province to bring forward a provincial budget promise for a new funding deal.

"We need new revenue. We need a new funding formula from the Province of Manitoba as we go into budget 2025. It's a very difficult process to put this budget together."

"We're looking for a predictable funding model with a built-in escalator for municipalities for their operating budgets," said Kathy Valentino, the interim president for the AMM.

The mayor and the AMM are hoping to hear something from the province at next week's AMM convention in Winnipeg, where Manitoba's Municipal Relations Minister is scheduled to attend.

"It's all about collaborating and taking that information back as we go forward in the future, and what I can say is that we've signalled to them stable, predictable funding," said Glen Simard.

As for next year's budget, Gillingham said cuts are not being contemplated. Right now, the city has an annual 3.5 per cent property tax increase, which Gillingham pledged to keep at that level during his election campaign.

When asked if he can maintain that, all he'd say is that the budget will come forward in the coming weeks.