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
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.