Winnipeg could be forced to empty rainy day fund to deal with deficit
The City of Winnipeg’s rainy day fund could be running dry.
A financial update to the end of March projects a $27 million deficit for the end of the year.
This includes $12.8 million for police because of a drop in photo radar revenue and cost savings targets that likely won’t be achieved.
There is also $7.4 million for the fire-paramedic service related to overtime and WCB costs.
The report says if council approves, the fiscal stabilization reserve can be used to cover $19.5 million, depleting the fund.
It says the remaining $7.5 million will be made up by an “action plan” coming in June.
The report suggests services could be impacted.
“Until the forecasted deficit can be addressed, the city will be in a more difficult position to approve any over-expenditure requests, potentially causing some disruption to services.” states the report.
As the city dealt with cost pressures from the pandemic, the reserve was used to shore up finances. The fund is supposed to have a minimum balance of $78 million.
The report also predicts a $2.5 million deficit for Winnipeg Transit which will be made up by that department’s retained earnings.
It says ridership this year is 17 per cent below normal levels to the end of March.
“It is common that the city forecasts a deficit through the first quarter of the fiscal calendar,” said Councillor Jeff Browaty, chairperson of the standing policy committee on finance and economic development. “That being said, the current forecast does pose a serious challenge for the city for the remainder of the year. Departments will be required to maintain prudent fiscal management going forward as the city focuses on these early operating shortfalls.”
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.