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
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.