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
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.